12 Questions for senior managers to ask - derived from NAO report on Audit insights: lessons and findings from the NAO’s financial audits in 2024-25 (UK)

You can find the full report here.  From the notable themes (figure 3) and lessons from case studies in the report I've created 12 questions departments and senior managers ought to ask themselves annually.

1)  Have we got the basics right on financial data and reporting that data? (my suggestion for £the basics" are timely and accurate with clear graphics on trends in costs and income and variance to budget)

2) Do our core processes and controls retain sufficient information to ensure they are fit for purpose with data recorded accurately 1st time?

3) How do our controls on IT finance systems spot fraud, unauthorised changes and inefficiencies?

4) Have we replaced manual processes with automated ones to improve efficency and data quality?

5) Do our asset records have clear condition information and clarity on how assets are valued - do the records help us plan work on our assets better?

6) How have we improved processes and controls on our asset records?

7) What progress have we made on implementing audit recommendations?

8) Do our reports clearly align with strategic objectives and give readers a better and more transparent understanding of risk and impact when it is integrated across different organisational functions?

Compensation Schemes

9) When creating a new body or scheme, have we built sufficient capacity within enabling corporate functions, including financial reporting, that are key to supporting operational delivery?

10) Are estimates of future costs based on the most current and best available evidence obtainable?

Digital transformation and IT change

11) Did we put appropriate controls and governance in place when attempting IT change?  E.g.

 

• Governance and capability: Appropriate change governance processes and controls need to be in place and development teams must have sufficient capability.

• Testing and ‘go live’ decisions: Testing must be comprehensively planned through consultation with impacted stakeholders and go live decisions must be based on evidence that all risks have been mitigated or accepted.

• Post-implementation reviews: Actions to learn lessons and confirm outcomes must be carried out in a timely fashion.

Asset management

12) Do the senior people consistently and regularly promote a culture where process, controls and record-keeping are valued?

Background

The National Audit Office (NAO) provides an independent audit opinion on around 400 annual report and accounts (ARAs) each year

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.