RegulationAccounting StandardsNAO again refuses to sign off MoD accounts

NAO again refuses to sign off MoD accounts

Amyas Morse wants more information on how the department verifies its valuation for inventory

THE NAO has again refused to give a clean sign-off for the MoD’s accounts

Comptroller and auditor general Amyas Morse said he had not been provided with sufficient evidence to confirm the department’s £10bn valuation for inventory and capital spares.

He also noted that the department has yet to obtain approval for the remuneration package of the chief of defence materiel.

The department has also failed to comply with international financial reporting standards (IFRS) for determining whether a contract contains a lease. The department has omitted a material value of assets and liabilities from its statement of financial position for the third year running. The impact of this on the accounts is uncertain as the department has not maintained the records or obtained the information required.

However, Morse did say that the MoD had made “welcome progress” in how it tracks its inventory.

The MoD has also established mechanisms to verify its BOWMAN radio equipment for accounting purposes.

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