PracticePeople In PracticeMoD under fire over public sector accounting changes

MoD under fire over public sector accounting changes

The Ministry of Defence has confirmed resource accounting is proving so complicated it cannot yet cost individual force elements - like frigates, fighter squadrons or tank brigades.

It insisted it must concentrate on producing reliable output data and will limit the information it provides to three separate cost figures for overall military capability, departmental work and new equipment procurement.

The MoD was responding to a report from the Commons Defence Committee complaining that the MoD producing ‘not terribly helpful ‘ information will is ‘disappointing.’

The response glossed over the reasons behind the failure and said it remains the MoD’s intention to produce figures on the basis of components of military capability.

But the report continues: ‘The implementation of resource accounting in the MoD presents a complex set of challenges and it is important that the emphasis at this stage is on producing reliable output data.

‘Only when this has been achieved will it be possible to provide reliable and detailed output costing information capable of withstanding audit.’

The committee is about to consider illustrative resource supply estimates for 2000-2001 and the MoD promised to supply MPs with more meaningful supporting information.

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