- The National Audit Office (NAO) provides an independent audit opinion on around 400 annual report and accounts (ARAs) each year
- Despite improvements by many organisations, there is more to do to secure timely and robust reporting
- High quality and timely reporting is vital for accountability to taxpayers and helps drive improvements in value for money
For the first time, the NAO has brought together thematic insights from recent financial audits and wider assurance work to highlight opportunities to strengthen financial management and reporting in government and, in turn, help improve productivity and resilience in public service delivery.
With government spending around £1.1 trillion a year, annual reporting of this expenditure through ARAs is one of the most important ways that Parliament and the public can hold government to account.
The NAO’s independent audit work on the ARAs of the 17 major government departments and numerous other organisations shows a range of common issues and areas for improvement.
These include:
- data and reporting quality
- IT controls and implementing IT change
- asset management
- cost and delivery of compensation schemes1
In addition, despite a recent improvement in the timeliness of ARAs, there is more to do to meet Parliament’s expectations of prompt reporting. Reporting before the summer parliamentary recess helps to free up finance teams to focus on other important activities in the autumn.
In 2018-19, around 76% of bodies published their audited accounts before the summer recess, reducing to around 42% in 2019-20 due to the Covid-19 pandemic. Nearly two-thirds of ARAs were published before the most recent summer recess in 2024-25.
NAO financial audits led to more than £375 million in positive financial impact for audited bodies in 2024. From tackling benefit overpayments to additional tax yield, NAO work supports accountability and transparency in how government has spent taxpayers’ money.
"This report shows the progress that government has made in recovering the delays to the publication of accounts caused by the pandemic. But despite improvements by many organisations, there is more to do to secure timely and robust reporting.
“The case studies in the report demonstrate that getting government’s accounts right is not just vital for accountability to taxpayers. It also helps to drive improvement in value for money and results for citizens.”
Gareth Davies, head of the NAO
Full publication
Audit insights: lessons and findings from the NAO’s financial audits in 2024-25
Notes for editors
- Figure 3 in the report shows commonly occurring recommendations across data and reporting quality, IT controls and asset management.