Finance Bill 2000
Clause 149: Preparation and publication of the annual accounts of the Exchange Equalisation Account
Summary
This clause obliges the Treasury to prepare annual accounts for the Exchange Equalisation Account, and the Comptroller and Auditor General to examine, certify and report on those accounts to each House of Parliament.
Details of the clause
Subsection (1) obliges the Treasury to prepare annual accounts relating to the transactions, assets and liabilities of the Exchange Equalisation Account, in a form and on a basis that the Treasury may prescribe.
Subsection (2) obliges the Treasury to send these accounts to the Comptroller and Auditor General not later than 30 November of the financial year after the year to which the accounts relate.
Subsection (3) obliges the Comptroller and Auditor General to examine, certify and report on the accounts and send the certified accounts and report to the Treasury by the following 15 January.
Subsection (4) obliges the Treasury to lay the certified accounts and report before each House of Parliament by the following 31 January.
Subsection (5) describes the scope of the Comptroller and Auditor General's opinion on the accounts.
Subsection (6) enables the Treasury by order made by statutory instrument to amend the timetable of actions leading to the laying of the certified accounts and report.
Subsection (7) provides for the Treasury to consult the Comptroller and Auditor General before making any order which alters the timetable which culminates in laying report and accounts.
Subsection (8) prescribes that a statutory instrument containing an order for changing the timetable for preparing and laying the accounts shall be subject to annulment in pursuance of a resolution of the House of Commons.
Subsection (9) clarifies the meaning of the reference to the use of resources in relation to these accounts.
Background
The Exchange Equalisation Account holds the official reserves of foreign currency and gold of the United Kingdom. This account was formerly kept secret but a first set of annual accounts was published for 1997-98 in January 2000. The statutory basis for the preparation of an examination, certification and report on the accounts of the Exchange Equalisation Account has been the Exchequer and Audit Departments Act 1921, Section 5, under which the Treasury has issued a direction to that purpose, and the financial statements for the Exchange Equalisation Account since 1997-98 have been audited by the National Audit Office following a recommendation by the Committee of Public Accounts in its 8th report of 1989-90.
Once enacted, the provisions in this clause will provide the Treasury and the National Audit Office with express obligations to perform these tasks, in the interests of transparency and accountability for dealings on the Exchange Equalisation Account.