Annual Report & Accounts 2011-12

Accounts Direction given by the Treasury in accordance with section 7 (2) of the Government Resources and accounts Act 2000

1. This direction applies to those executive agencies listed in the appendix below.  

2. These executive agencies shall prepare accounts for the year ended 31 March 2012 in compliance with the accounting principles and disclosure requirements of the edition of the Government Financial Reporting Manual issued by H M Treasury (“the FReM”) which is in force for 2011-12.  

3. The accounts shall be prepared so as to: 

(a) give a true and fair view of the state of affairs as at 31 March 2012 and of the income and expenditure (or, as appropriate, net resource outturn), changes in taxpayers’ equity and cash flows of the agency for the financial year then ended; and 

(b) provide disclosure of any material expenditure or income that has not been applied to the purposes intended by Parliament or  material transactions that have not conformed to the authorities which govern them.  

4.  Compliance with the requirements of the FReM will, in all but exceptional circumstances, be necessary for the accounts to give a true and fair view. If, in these exceptional circumstances, compliance with the requirements of the FReM is inconsistent with the requirement to give a true and fair view, the requirements of the FReM should be departed from only to the extent necessary to give a true and fair view. In such cases, informed and unbiased judgement should be used to devise an appropriate alternative treatment which should be consistent with both the economic characteristics of the circumstances concerned and the spirit of the FReM. Any material departure from the FReM should be discussed in the first instance with HM Treasury.      


Chris Wobschall Deputy Director,
Assurance and Financial Reporting Policy
Her Majesty’s Treasury
20 December 2011

This accounts direction applies to the following executive agencies:



In addition, a separate direction has been issued to the Meat Hygiene Service (Food Standards Agency) (11 January 2006) – issued in respect of 2005-06 and subsequent financial years.

Accounts Direction given by HM Treasury in accordance with Section 2 of the Exchequer and Audit Departments Act 1921

1. This direction applies to those executive agencies listed in the appendix below.

2. The agency shall prepare a Trust Statement (“the Statement”) for the financial year ended 31 March 2012 for the revenue and other income, as directed by the Treasury, collected by the agency as an agent for others, in compliance with the accounting principles and disclosure requirements of the edition of the Government Financial Reporting Manual by HM Treasury (“FReM”) which is in force for 2011-12.

3. The Statement shall be prepared, as prescribed in appendix 1, so as to give a true and fair view of (a) the state of affairs relating to the collection and allocation of taxes, licence fees, fines and penalties and other income by the agency as agent and of the expenses incurred in the collection of those taxes, licence fees, fines and penalties insofar as they can properly be met from that revenue and other income; (b) the revenue and expenditure; and (c) the cash flows for the year then ended.

4. The statement shall also be prepared so as to provide disclosure of any material expenditure or income that has not been applied to the purposes intended by Parliament or material transactions that have not conformed to the authorities which govern them.

5. When preparing the Statement, the agency shall comply with the guidance given in the FReM (Chapter 13). The agency shall also agree with HM Treasury the format of the Principal Accounting Officer’s Foreword to the Statement, and the supporting notes, and the accounting policies to be adopted, particularly in relation to revenue recognition. Regard shall also be given to all relevant accounting and disclosure requirements in Managing Public Money and other guidance issued by HM Treasury, and to the principles underlying International Financial Reporting Standards.

6. Compliance with the requirements of the FReM will, in all but exceptional circumstances, be necessary for the accounts to give a true and fair view. If, in these exceptional circumstances, compliance with the requirements of the FReM is inconsistent with the requirement to give a true and fair view, the requirements of the FReM should be departed from only to the extent necessary to give a true and fair view. In such cases, informed and unbiased judgement should be used to devise an appropriate alternative treatment which should be consistent with both the economic characteristics of the circumstances concerned and the spirit of the FReM. Any material departure from the FReM should be discussed in the first instance with HM Treasury.

7. The Statement shall be transmitted to the Comptroller and Auditor General for the purpose of his examination and report by a date agreed with the Comptroller and Auditor General and HM Treasury to enable compliance with the administrative deadline for laying the audited accounts before Parliament before the Summer Recess.

8. The Trust Statement, together with this direction (but with the exception of the related appendices) and the Report produced by the Comptroller and Auditor General, under Section 2 of the Exchequer and Audit Departments Act 1921 shall be laid before Parliament at the same time as the Department’s Resource Accounts for the year unless the Treasury have agreed that the Trust Statement may be laid at a later date.

Chris Wobschall
Deputy Director, Assurance and Financial
Reporting Policy
HM Treasury
20 December 2011

Trust Statement for the year ended 31 March 2012  

1. The Trust Statement shall include:   

• a Foreword by the Principal  Accounting Officer; 
• a Statement of the Principal Accounting Officer’s Responsibilities;
• a Governance Statement;
• a Statement of Revenue, Other Income and Expenditure;
• a Statement of Financial Position;
• a Cash Flow Statement; and
• such notes as may be necessary to present a true and fair view.  

2. The Notes shall include among other items: 

• the accounting policies, including the policy for revenue recognition and estimation techniques and forecasting techniques together with statements explaining any significant uncertainty surrounding estimates and forecasts;
• a breakdown of material items within the accounts;
• any assets, including intangible assets and contingent liabilities;
• summaries of losses, write-offs and remissions;
• post balance sheet events; and 
• any other notes agreed with HM Treasury and the National Audit Office.