- The National Audit Office (NAO) provides an independent audit
opinion on around 400 annual report and accounts (ARAs) each year
- Despite improvements by many organisations, there is more to
do to secure timely and robust reporting
- High quality and timely reporting is vital for accountability
to taxpayers and helps drive improvements in value for money.
For the first time, the NAO has brought together thematic
insights from recent financial audits and wider assurance work to
highlight opportunities to strengthen financial management and
reporting in government and, in turn, help improve productivity
and resilience in public service delivery.
With government spending around £1.1 trillion a year, annual
reporting of this expenditure through ARAs is one of the
most important ways that Parliament and the public can hold
government to account.
The NAO's independent audit work on the ARAs of the 17 major
government departments and numerous other organisations shows a
range of common issues and areas for improvement.
These include:
- data and reporting quality
- IT controls and implementing IT change
- asset management
- cost and delivery of compensation schemes1.
In addition, despite a recent improvement in the timeliness of
ARAs, there is more to do to meet Parliament's expectations of
prompt reporting. Reporting before the summer parliamentary
recess helps to free up finance teams to focus on other important
activities in the autumn.
In 2018-19, around 76% of bodies published
their audited accounts before the summer recess,
reducing to around 42% in 2019-20 due to the Covid-19
pandemic. Nearly two-thirds of ARAs were
published before the most recent summer recess in
2024-25.
NAO financial audits led to more than £375 million in positive
financial impact for audited bodies in 2024. From tackling
benefit overpayments to additional tax yield, NAO
work supports accountability and transparency in
how government has spent taxpayers' money.
, head of
the NAO, said:
“This report shows the
progress that government has made in recovering
the delays to the publication
of accounts caused by the
pandemic. But despite improvements by many
organisations, there is more to
do to secure timely and
robust reporting.
“The case studies in the report demonstrate that getting
government's accounts right is not just vital for accountability
to taxpayers. It also helps to drive improvement in value for
money and results for citizens.”
ENDS
Notes to editors
- Figure 3 in the report shows commonly occurring
recommendations across data and reporting quality, IT controls
and asset management.
About the NAO
The National Audit Office (NAO) scrutinises public spending for
Parliament and is independent of government and the civil
service. It helps Parliament hold government to account and it
uses its insights to help people who manage and govern public
bodies improve public services.
The Comptroller and Auditor General (C&AG), , is an
Officer of the House of Commons and leads the NAO. The NAO audits
the financial accounts of departments and other public bodies. It
also examines and reports on the value for money of how public
money has been spent.
In 2024, the NAO's work led to a positive financial impact
through reduced costs, improved service delivery, or other
benefits to citizens, of £5.3 billion. This represents around £53
for every pound of our net expenditure.
