Value for Money
Accountability in small government bodies
Published 25 June 2025
5 recommendations
Cross-government
Accountability and oversightProject and service delivery
nao.org.uk
Government can release resources and improve accountability by tailoring governance and audit requirements for small public bodies.
Recommendations (5)
Source: NAO Recommendations Tracker · PAC follow-up below
Cabinet Office
Rec 1
Response Pending
To make compliance with the functional standards more meaningful for small bodies, the Cabinet Office should work with the centres of the government functions to: (a) review the functional frameworks and checklists to ensure that they are appropriate to organisations with simple, less significant and less risky activities.
Cabinet Office
Rec 2
Response Pending
To make compliance with the functional standards more meaningful for small bodies, the Cabinet Office should work with the centres of the government functions to: (b) test existing and any proposed future versions of these documents with small bodies and, where appropriate, amend them based on their feedback.
Cabinet Office
Rec 3
Under Consideration
To make compliance with the functional standards more meaningful for small bodies, the Cabinet Office should work with the centres of the government functions to: (c) make it easier for small bodies to access, understand and comply with the functional standards, for example by: ? including more case studies and examples of bodies of different sizes and complexity in the functional guidance; ? including guidance in the continuous improvement assessment frameworks on how ALBs and their sponsor departments can apply and flex the functional standards in a proportionate way; ? featuring the Central Government?s Assurance Directory, which includes a list of functional frameworks and checklists, more prominently on the GOV.UK webpages on government functions; and ? considering, where possible, how functional standards, continuous improvement frameworks and guidance could be featured more prominently in the training and induction offer for civil servants.
HM Treasury
Rec 4
Accepted
Work in Progress
To ensure that the financial reporting requirements for small bodies are meaningful and proportionate, HM Treasury should: (d) work with departments to develop a consistent approach to deciding which organisations may be eligible for a small body reporting regime. This should consider each body?s size, complexity and level of risk, and should involve collaboration with departments.
HM Treasury
Rec 5
Accepted
Work in Progress
To ensure that the financial reporting requirements for small bodies are meaningful and proportionate, HM Treasury should: (e) explore issuing streamlined reporting and disclosure requirements for ARAs, to be applied to organisations with simple operations and low risk to public money. These may involve, for instance, complying with a smaller set of requirements, using other avenues than ARAs to disclose some non financial information, reporting on certain low-risk areas every two or three years rather than annually, or giving departments the ability to reward well run ALBs by allowing them to comply with streamlined reporting and disclosure requirements.
Parliamentary Committee Follow-Up
The Public Accounts Committee examined this NAO report and published its own recommendations. The government responds to PAC recommendations via Treasury Minutes.
77th Report - Accountability in small government bodies
Public Accounts Committee
· 24 April 2026
· 2 recommendations