DFID has a statutory obligation to produce an annual Resource Account in accordance with Her Majesty's Treasury (HMT) guidance (Government Financial Reporting Manual). We must also adhere to accounting standards and Generally Accepted Accounting Practice (GAAP). In this respect, our accounts are very similar to those prepared by private sector business.Resource accounts are accruals based. Accruals accounting is a method of recording expenditure as it is incurred, not when it is paid out, and income as it is earned, not when it is received. Resource accounts record assets and liabilities as well as expenditure.
The National Audit Office (NAO) audits the resource accounts. DFID's Accounting Officer (the Permanent Secretary) signs them before they are presented to Parliament each year.
Certain information used to populate the accounts is obtained directly from departments through the Year End Pack exercise. The faster close agenda means that DFID, like other Government Departments, has to continually improve the time that it takes to present its accounts to Parliament each year. This requires accurate and timely completion of the Year End Pack by each department as part of the year-end process.
1. Departments must complete and submit the Year End Pack to Financial Management Group (FMG) within prescribed timescales.
2. The Accounts must comply with the Government Financial Reporting Manual.
3. The Accounts should be available for audit by NAO by the date agreed in the project plan.
4. Accounts must be laid in the House of Commons by the statutory date.
Bookmark with:
What are Bookmarks?