Section 7: Departmental accounts other than resource accounts
37.This section provides for the preparation, audit and laying before Parliament of accounts prepared by departments other than resource accounts. The main accounts envisaged as being prepared under this section are those of executive agencies. This section replaces the similar powers of section 5 of the Exchequer and Audit Departments Act 1921.
38.Subsection (1) enables the Treasury to direct departments to prepare accounts other than resource accounts as considered necessary. As noted above the main accounts envisioned as being prepared under this section are those of executive agencies but the Treasury may direct that other accounts (such as trust accounts which are prepared where a department holds money and/or assets on behalf of others) not covered by specific legislation may also be prepared under this section.
39.Subsection (2) enables the Treasury to issue accounts directions specifying the form and contents of the accounts. Due to the likely heterogeneous nature of the accounts that will be produced under this section (full accruals, partial accruals and cash) no restrictions as to the form of the accounts are being included in the legislation.
40.Subsection (3) requires accounts prepared under this clause to be examined and certified by the C&AG and laid before the House of Commons. The timetable for audit and laying of accounts given in the subsection corresponds to that currently followed for accounts prepared under section 5 of the Exchequer and Audit Departments Act 1921 (the opportunity has been taken to dispense with the obsolete provision for certain MoD accounts to be prepared to a longer timetable).
41.Subsection (4) requires the C&AG to carry out his audit of accounts prepared under this clause with a view to satisfying himself that all expenditure (whether of cash or resources) fulfils the requirements of regularity.
42.Subsection (5) enables the Treasury to direct that any or all the accounts prepared under this clause may be laid before the House of Commons by the responsible department(s) rather than by the Treasury. Many accounts (especially those of executive agencies) which are prepared under section 5 of the Exchequer and Audit Departments Act 1921 are already effectively laid by the department themselves rather than the Treasury. This provision will enable formal responsibility to be transferred to the departments.
