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CIPFA and the Audit Commission have published a briefing paper on Whole of Government Accounts. Hard copies are being distributed to selected local authority Finance Officers. A PDF version can be downloaded here [10 pages, 59K] |
WGA in Scotland
The WGA timetable requires local authorities to participate in the 'dry run' for commercial style consolidated whole of government accounts in 2004/5. Local authorities will be required to ensure the completion of pro forma documentation. The documents will be supported by guidance notes. CIPFA has played a role in ensuring that the consolidation pack to be completed by local authorities is fit for purpose in Scotland. Local authorities will be required to return the completed documentation by 31 October and it is anticipated that the pack will be issued by the Scottish Executive in July.
Brief introduction and timetable
Bodies to be included
Alignment of accounting policies and impact on included bodies
Further information
Brief introduction and timetable
Following a recommendation by the influential Public Accounts Committee, a commitment was made in the Code of Fiscal Stability to produce GAAP-based accounts for the whole of the public sector. The first step towards Whole of Government Accounts (WGA) was Central Government Accounts (CGA). 'Dry-run' CGA are planned for 2001/02 and 2002/03, to be followed by a fully audited CGA for 2003/04. CGA includes government departments, public corporations, trading funds, executive NDPBs, next step agencies and others. The full list of central government bodies to be included in CGA for 2003/04 can be seen by clicking here.
Whole of Government Accounts (WGA) are commercial style accounts for the whole of the public sector, modified to reflect the public sector circumstance, and extend CGA to bodies such as local authorities and NHS trusts. The official go-ahead for this extension was announced as part of the pre-budget report on 10 December 2003. The press release gives the timetable for WGA as two 'dry-run' years in 2004/05 and 2005/06, with fully audited WGA in 2006/07.
Bodies to be included
WGA is expected to include all the CGA bodies, plus local authorities (including police authorities, fire authorities, waste disposal authorities and others) and NHS trusts. A full list of bodies to be included is not expected to be available until early 2004. However CIPFA expects the following bodies to be included:
- English Shire District Councils, Unitary Authorities, Metropolitan District Councils, County Councils and London Boroughs and the Greater London Authority
- Scottish and Welsh Unitary Authorities
- Northern Ireland District Councils
- English and Welsh Police Authorities and Metropolitan Police Authority, Scottish Police Joint Boards
- English Combined Fire Authorities and Fire and Civil Defence Authorities, London Fire and Emergency Planning Authority, Scottish Fire Joint Boards, Welsh Combined Fire Authorities
- English and Welsh National Park Authorities
- English Broads Authority and Lea Valley Regional Park Authority
- Passenger Transport Authorities in England and Scotland
- Transport for London, Greater London Magistrates Court Committee, London Development Agency and London Pensions Fund Authority
- NHS Trusts
- UK Trading Funds and UK Public Corporations
A provisional list of the English and Welsh local authorities to be included can be found at www.wga.gov.uk/pages/localgovt.html, and of the English and Welsh NHS Trusts at www.wga.gov.uk/pages/nhstrusts.html. The inclusion of bodies in Scotland and Northern Ireland, and NHS Trusts in Wales, is the responsibilty of the relevant devolved administration.
Alignment of accounting policies and impact on included bodies
The production of GAAP-based WGA requires alignment of accounting policies of the consolidated bodies with the 'parent' body. In recent years there has been considerable convergence of accounting policies and practices across the public sector. This means that 'included bodies' will already be preparing almost all of the information required for WGA as part of their annual accounts process. Where there is a difference in accounting policies, alignment can often be achieved by consolidation adjustments, which will reduce the need for changes in the accounting of consolidated bodies. However where differences exist, which cannot be adjusted for on consolidation, for example in relation to the valuation of infrastructure assets, consideration may need to be given to how such differences can be eliminated.
Further information
Further information is available from the WGA website at www.wga.gov.uk and the ODPM website at www.local.odpm.gov.uk/finance/wga/index.htm.
The March 2004 issue of CIPFA Spectrum magazine contains an article written by Martin Evans and Paul King entitled 'WGA - a whole new challenge'. To download this issue of Spectrum magazine, please click here. [PDF Download - size 104KB, 7 pages]