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Here you can browse the Minutes of Evidence which were ordered by the House of Commons to be printed 11 May 1998.

MINUTES OF EVIDENCE
TAKEN BEFORE THE COMMITTEE OF PUBLIC ACCOUNTS

MONDAY 11 MAY 1998

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Members present:

Mr David Davis, in the Chair

Mr Ian Davidson	Mr Christopher Leslie
Mr Geraint Davies	Mr Andrew Love
Ms Maria Eagle	Mr Richard Page
Ms Jane Griffiths	Mr Charles Wardle
Mr Phil Hope	Mr Alan Williams

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SIR JOHN BOURN, KCB, Comptroller and Auditor General, National Audit Office, further examined.

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CONTENTS

RESOURCE ACCOUNTING AND BUDGETING (PAC 97-98/14)

Letter and Memorandum submitted by HM Treasury

RESOURCE ACCOUNTING AND BUDGETING: PROGRESS SINCE THE JUNE 1996

MEMORANDUM AND FURTHER PROPOSALS FOR A RESOURCE-BASED SYSTEM OF SUPPLY AND REPORTING TO PARLIAMENT
INTRODUCTION
DEVELOPMENTS SINCE JUNE 1996
NEXT STAGES
SUMMARY

GLOSSARY OF TERMS

ANNEX A

FRAMEWORK FOR LIVE TESTING AND DEVELOPMENT OF CONTROL ARRANGEMENTS

ANNEX B

COMMENTARY ON "DEPARTMENT YELLOW" RESOURCE ESTIMATE FORMAT

DEPARTMENT YELLOW RESOURCE ESTIMATE: 2001-2002

Part I:
Part II:
Part III:

ANNEX C

COMMENTARY ON DEPARTMENT YELLOW ACCOUNTS

SCHEDULE 1—SUMMARY OF RESOURCE OUTTURN
SCHEDULE 2—OPERATING COST STATEMENT
SCHEDULE 3—BALANCE SHEET
SCHEDULE 4—CASH FLOW STATEMENT
SCHEDULE 5—RESOURCES BY DEPARTMENTAL AIMS

NOTES TO THE ACCOUNTS
DEPARTMENT YELLOW: ILLUSTRATIVE PRIMARY STATEMENTS

DEPARTMENT YELLOW
Summary of resource outturn 2001-02

Schedule 2
DEPARTMENT YELLOW

STATEMENT OF RECOGNISED GAINS AND LOSSES
for the year ended 31 March 2002

Schedule 3
DEPARTMENT YELLOW

Schedule 4
DEPARTMENT YELLOW

Schedule 5
DEPARTMENT YELLOW

Notes to the Departmental Resource Accounts

1. Statement of Accounting Policies
2. Staff Numbers and Costs
3. Other Administration Costs
4. Net Programme Costs
5. Operating Income
6. Administration Cost Limits
7. Reconciliation of Net Operating Cost to Control Total and Net Resource Outturn
8. Analysis of Net Resource Outturn and Net Operating Cost by Function
9. Analysis of Capital Expenditure, Financial Investment and associated A in A
10. Tangible Fixed Assets
11. Investments
12. Movements in Working Capital other than Cash
13. Stocks and Work-in-Progress
14. Debtors
15. Cash at Bank and in Hand
16. Creditors: amounts falling due within one year
17. Provisions for Liabilities and Charges
18. Reserves
19. Capital Commitments
20. Commitments under Operating Leases
21. Other Commitments
22. Contingent Liabilities
23. Reconciliation of Net Operating Cost to changes in General Fund
24. Analysis of Net Operating Cost
25. Related party transactions
26. Notes to Schedule 5

ANNEX D

ILLUSTRATIVE RESOURCE ACCOUNT FOR HM TREASURY

INTRODUCTION
FOREWORD TO THE ACCOUNTS
STATEMENT OF ACCOUNTING OFFICER RESPONSIBILITIES
STATEMENT ON SYSTEM OF INTERNAL FINANCIAL CONTROL
MODEL CERTIFICATE AND REPORT OF THE C&AG

HM TREASURY

SCHEDULE 1 - SUMMARY OF RESOURCE OUTTURN 19XX-XX
SCHEDULE 2 - OPERATING COST STATEMENT / STATEMENT OF RECOGNISED GAINS AND LOSSES for the year ended 31 March 19XX
SCHEDULE 3 - BALANCE SHEET - as at 31 March 19XX
SCHEDULE 4 - CASH FLOW STATEMENT - for the year ended 31 March 19XX
SCHEDULE 5 - RESOURCES BY DEPARTMENTAL AIMS - for the year ended 31 March 19XX

HM Treasury—Annual Report and Accounts 19XX-XX

NOTES TO THE DEPARTMENTAL RESOURCE ACCOUNTS

1. Statement of Accounting Policies
2. Staff Numbers and Costs.
3. Other administration costs
4. Operating Income
5. Non-operating income payable to the Consolidated Fund
6. Reconciliation of net operating cost to control total and net resource outturn.
7. Analysis of net resource outturn and net operating cost by function.
8. Tangible Fixed Assets
9. Investments
10. Movements in working capital other than cash
11. Debtors
12. Cash at Bank and in Hand
13. Creditors: amounts falling due within one year
14. Provisions for Liabilities and Charges
15. Reserves
16. Contingent Liabilities
17. Reconciliation of net operating cost to changes in General Fund

ANNEX E

ILLUSTRATIVE RESOURCE ACCOUNTS FOR MAFF


INTRODUCTION

MINISTRY OF AGRICULTURE, FISHERIES AND FOOD

Draft Format of MAFF's Consolidated Resource Accounts

FOREWORD TO THE ACCOUNTS

for the year ended 31 March 1999

1. Basis of Accounts
2. Brief History
3. Ministry Activities
4. Key Aims and Objectives
5. Pensions.
6. Early Departure Costs.
7. Ministers and Senior Officers
8. Appointment of the Permanent Secretary and members of the Management Board
9. Remuneration of Ministers and members of the Management Board
10. Employment of Disabled Persons
11. Staff Relations and Equal Opportunities
12. Payments of suppliers
13. Auditors
14. Review of the results
15. Fixed Assets
16. Post Balance Sheet events.
17. Related Transactions

MINISTRY OF AGRICULTURE FISHERIES AND FOOD

SCHEDULE 1 - VOTE 2 - SUMMARY OF RESOURCE OUTTURN for the year ended 31 March 1999
SCHEDULE 2 - CONSOLIDATED OPERATING COST STATEMENT / STATEMENT OF RECOGNISED GAINS AND LOSSES for the year ended 31 March 1999
SCHEDULE 3 - CONSOLIDATED BALANCE SHEET as at 31 March 1999
SCHEDULE 4 - CONSOLIDATED CASH FLOW STATEMENT as at 31 March 1999
SCHEDULE 5 - CONSOLIDATED RESOURCES BY MINISTRY AIMS - for the year ended 31 March 1999

MINISTRY OF AGRICULTURE, FISHERIES AND FOOD

Annual Report and Accounts 1998-99

NOTES TO THE ACCOUNTS

1. Statement of Accounting Policies
2. Staff Numbers and Costs
3. Other Administration Costs
4. Fixed Assets
5. Operating Income
6. Administration Cost Limits
7. Reconciliation of Net Operating Cost to Control Total and Net Resource Outturn
8. Analysis of Net Resource Outturn and Net Operating Costs by Aim
9. Analysis of Capital Expenditure, financial investment and associated income
10. Domestic Expenditure
11. EU Fully Funded Expenditure
12. EU Partially Funded Expenditure
13. Research & Development by Sub-Aim
14. Reconciliation of Net Operating Cost to Net Cash Outflow from Operating Activities
15. Stocks and Work-in-Progress
16. Debtors
17. Cash at Bank and in Hand
18. Creditors Amounts falling due within one year
19. Provisions for Liabilities and Charges
20. Reserves
21. Capital Commitments
22. Operating Commitments
23. Commitments Under Operating Leases
24. Contingent Liabilities
25. Post Balance Sheet Events
26. Reconciliation of Net Operating Cost to changes in the General Fund
27. Analysis of Expenditure by the Ministry and Related Bodies
28. Financing, Exchequer Funds and Reconciliation to Vote.
29. Notes to Statement 5.

LIST OF PUBLIC BODIES OUTSIDE THE DEPARTMENTAL BOUNDARY FOR WHICH THE DEPARTMENT HAD LEAD POLICY RESPONSIBILITY
STATEMENT ON SYSTEM OF INTERNAL FINANCIAL CONTROL
THE CERTIFICATE AND REPORT OF THE COMPTROLLER AND AUDITOR GENERAL TO THE HOUSE OF COMMONS
STATEMENT OF ACCOUNTING OFFICER'S RESPONSIBILITIES

ANNEX F

COMMENTARY ON SPECIFIC CONCERNS RAISED ABOUT RAB

FINANCIAL REPORTING ADVISORY BOARD TO THE TREASURY: REPORT ON THE RESOURCE ACCOUNTING MANUAL (PAC 97-98/15)

Memorandum submitted by HM Treasury

INTRODUCTION
THE BOARD'S CONCLUSIONS
ACCOUNTING FOR INFRASTRUCTURE ASSETS
ACCOUNTING FOR HERITAGE ASSETS
RELATIONSHIP WITH RESOURCE BUDGETING
NEXT STEPS
FUTURE ROLE OF THE BOARD

FINANCIAL REPORTING ADVISORY BOARD: REPORT ON THE RESOURCE ACCOUNTING MANUAL (PAC 97-98/54)

Memorandum by the Comptroller and Auditor General

INTRODUCTION

RESOURCE ACCOUNTING AND BUDGETING (PAC 97-98/55)

Copy of a Letter and a Memorandum from the Comptroller and Auditor General

CONCLUSION (XIII)
CONCLUSION (XV)
CONCLUSION (XVI)
CONCLUSION (XIX)
CONCLUSION (XXII)
CONCLUSION (XXIII)

RESOURCE ACCOUNTING AND BUDGETING, AND PROPOSALS FOR A RESOURCE-BASED SYSTEM OF SUPPLY

INTRODUCTION
THE GOVERNMENT'S PROPOSALS
THE PRESENT SYSTEM OF SUPPLY
THE PROPOSED SYSTEM OF SUPPLY
IMPLICATIONS FOR PARLIAMENTARY CONTROL
PROPOSED SYSTEM OF SUPPLY: OTHER IMPLICATIONS
TIMETABLE FOR INTRODUCING RESOURCE-BASED SUPPLY
SUMMARY OF ISSUES FOR THE COMMITTEE TO CONSIDER

ANNEX A
RESOURCE ACCOUNTING AND BUDGETING—KEY PARLIAMENTARY DOCUMENTS

ANNEX B

RESOURCE ACCOUNTING AND BUDGETING (PAC 97-98/186)

Memorandum by H M Treasury

INTRODUCTION
IMPLEMENTATION TIMETABLE
COSTS OF DOUBLE RUNNING
RESOURCE-BASED ESTIMATES
IN-YEAR "LIVE TEST"
PRIOR PERIOD ADJUSTMENTS
INFLATION ACCOUNTING
CONTINGENT LIABILITIES

RESOURCE ACCOUNTING AND BUDGETING (PAC 97-98/225)

Memorandum by H M Treasury

Examination of witnesses

MR ANDREW LIKIERMAN, Director of Financial Management, Reporting and Audit, MRS ROSAMUND DUNN, Team Leader, Resource Accounting and Budgeting Team, MR DOUG RAYNER, Policy Adviser, Resource Accounting and Budgeting Team, and MR CHRIS RICHARDS, Accountancy Adviser, Central Accountancy Team, HM Treasury, were examined.

Question Number
1 - 19
20 - 45


APPENDIX 1
RESOURCE ACCOUNTING AND BUDGETING (PAC 97-298/292)

Supplementary Memorandum by HM Treasury

THE TRANSITION—HMT PROPOSALS

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Prepared 10 August 1998