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HM Treasury sets minimum financial reporting requirements for 2019-20

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.