Question to the Ministry of Defence:
To ask the Secretary of State for Defence, how many companies or entities his Department (a) controls or (b) has significant influence over whose accounts are not audited by the National Audit Office.
The designation order under the Government Resources and Accounts Act for 2019 identified the following entities as falling within the accounting boundary of the Ministry of Defence due to the control/influence exercised by the department. The listing shown is taken from the MOD Annual Report and Accounts 2019-20 (Page 205) – Entities within the Departmental Boundary[1]:
Organisation | Separate Accounts Subject to Audit by the National Audit Office |
On-Vote Defence Agencies |
|
Defence Electronic Components Agency* | Yes |
Defence Equipment and Support Bespoke Trading Entity* | Yes |
Defence Science and Technology Laboratory* | Yes |
Submarine Delivery Agency* | Yes |
Non-Departmental Public Bodies* |
|
Armed Forces Covenant Fund Trustee Limited | N/A |
National Museum of the Royal Navy* | Yes |
National Army Museum* | Yes |
Royal Air Force Museum* | Yes |
Single Source Regulations Office* | Yes |
Advisory Non-Department Public Bodies |
|
Advisory Committee on Conscientious Objectors | N/A |
Armed Forces Pay Review Body | N/A |
Defence Nuclear Safety Committee | N/A |
Independent Medical Expert Group | N/A |
Nuclear Research Advisory Council | N/A |
Science Advisory Committee on the Medical Implications of Less Lethal Weapons | N/A |
Veterans Advisory and Pensions Committees | N/A |
Other Bodies |
|
Advisory Group on Military Medicine | N/A |
Central Advisory Committee on Compensation | N/A |
Commonwealth War Graves Commission* | No – Accounts audited by Grant Thornton LLP |
Defence Science Expert Committee | N/A |
Independent Monitoring Board for the Military Corrective Training Centre, Colchester | N/A |
International Military Services Limited* | No – Accounts audited by Price Bailey LLP |
Royal Hospital Chelsea* | Yes |
Service Complaints Ombudsman | N/A |
Service Prosecuting Authority | N/A |
Territorial, auxiliary and volunteer reserve associations established under section 110 of the Reserve Forces Act 1995 c14* | No – Clive Owen LLP |
* These entities, in addition to being covered by NAO as part of the Departmental audit, also produce their own individual annual report and accounts which are subject to separate audit. For the most part these audits are also carried out by the NAO with the exception of those highlighted in yellow.
The expenditure, income and assets and liabilities for the entities identified above are consolidated into the Departmental annual report and accounts and subjected to audit by the National Audit Office.
Additional information on the nature of the relationship between MOD and these entities (including governance and control arrangements) can be found in the Accounting Officer System Statement[2].
[1] Link to MOD ARAc https://www.gov.uk/government/publications/ministry-of-defence-annual-report-and-accounts-2019-to-2020
[2] Link to MOD AOSS https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/929425/20201022_MOD_Accounting_Officers_System_Statement_2020_-_FINAL.pdf”