Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what mechanisms are in place to audit information provided to his Department by (a) regulatory bodies and (b) non-departmental public bodies.

There is a statutory requirement for the annual reports and accounts of the financial services regulators (the Financial Conduct Authority, the Bank of England, and the Payment Systems Regulator) to be laid in Parliament by the Treasury. The regulators’ accounts are examined and audited by an independent auditor before they are provided to the Treasury.

A non-departmental public body is required to submit to their sponsoring department, on an annual basis, an annual report and audited accounts prepared in accordance with the relevant statutes and guidelines. The annual report and accounts provide the sponsoring department with the financial and non-financial performance of the non-departmental public body. In addition, they will state if the non-departmental public body has met key performance indicators as set out in their business and corporate plans. The report and accounts are laid in Parliament and made available on the non-departmental public body’s website.

The relationship between the department and its arm’s-length bodies (including non-departmental public bodies) is established through a Framework Document, in accordance with Managing Public Money.