Resource accounts

DFID's Resource Accounts are prepared in accordance with the 2009-2010 Government Financial Reporting Manual (FReM), issued by HM Treasury. The accounting policies contained in the FReM apply International Financial Reporting Standards as adapted or interpreted for the public sector context, for the first time during this year. The Resource Accounts are similar in many respects to the annual accounts prepared by private sector businesses. They contain the primary financial statements recording the full costs of activities, DFID's assets and liabilities as well as providing information on how resources have been used to meet objectives.

The format is tailored to central government accounting including, for example, financial comparisons against the department's resource-based estimates. Those not familiar with the format of the accounts might like to focus on the operating and financial review within the Management Commentary to the accounts, which summarises the key areas of performance.

The resource accounts are audited each year by the National Audit Office (NAO) before they are presented to Parliament.

The 2009-10 Resource Accounts contain an annex that includes additional spending tables, summary of performance on the Public Service Agreement and Departmental Strategic Objectives and efficiency savings. This replaces the formal annual report for the 2009-10 year and is in line with government requirements.

National Audit Office (NAO)

Who are the NAO? The NAO scrutinises public spending on behalf of Parliament. They are totally independent of Government. In addition to auditing our accounts they write reports for the Public Accounts Committee on the economy, efficiency and effectiveness with which government bodies have used public money.
What do they have to do with DFID? The NAO have conducted a number of studies on DFID's Value for Money and efficiency as an organisation. Their audit teams will often visit Headquarters and country offices to conduct interviews, appraisals, and evaluations. The final report is then considered by the Public Accounts Committee who discuss it and invites the Permanent Secretary to give evidence. If the report is critical, DFID must be prepared to defend itself against unfair criticism and implement the proposals they suggest.

Last updated: 03 Oct 2011

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