PracticeAuditGovernment fails to grasp resource accounting

Government fails to grasp resource accounting

The influential Commons Public Accounts Committee says resource accounting errors and failures by government departments were the reason for overspending last year when additional funding had to be sought from parliament.

Link: Resource accounting put the armed forces in Iraq at risk

A committee report blamed a failure to monitor and forecast financial performance for departments’ inability to act to reduce spending or seek approval before requesting additional funds.

MPs on the committee were also ‘very concerned’ that the Cabinet Office failed to prepare and transmit 2002/2003 resource accounts to the comptroller and auditor general in time to meet the 30 November deadline (as required by law) and then to reveal £2.4m overspending in accounts too late for Sir John Bourn to express an opinion on their accuracy.

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