HM Treasury sets minimum financial reporting requirements for 2019-20
26 May 2020
As a direct consequence of the effects of COVID-19 on government entities, HM
Treasury has taken the decision to reduce the financial reporting requirements
for preparers of government annual reports and accounts for 2019-20.
In doing so, HM Treasury has specified, in an Addendum, minimum reporting
requirements as per the Financial
Reporting Manual (FReM). Although specifying minimum
requirements HM Treasury notes that such requirements do not replace the FReM but
rather set out minimum financial reporting requirements. Entities may go beyond the
minimum requirements where they are able to.
There are reduced reporting requirements in the performance report including the
option of only producing the summary information in the performance overview as set
out in paragraph 5.28 of the FReM. This is instead of providing the performance
analysis as set out in paragraphs 5.2.6 and 5.2.9-5.2.10 of the 2019-2020 FReM.
Within the accountability report, the only optional requirements relate to the
Statement of Parliamentary Supply (SoPS). Entities applying the FReM are no longer
required to adhere to the comply or explain requirement in paragraph 3.1.7(b) of the
2019-20 FReM, that SoPS disclosures must follow the form of the illustrative
disclosures. Entities are also permitted to omit the requirements set out in 3.1.8
(a) and (b) in relation to supporting text and the presentation of figures in
thousands in the SoPS.
There will be no change to the format and content of the financial statements which
should continue to be published in line with the requirements of the 2019-20
FReM.
The Addendum is available on the HM Treasury website.