Treasury faces accounts qualification

The Treasury's accounts could be qualified by the NAO, the Times reports today.

In what would certainly prove one of the more humiliating episodes in government accounting in recent history, the paper reports that concerns over the status of Northern Rock have led the audit office to consider refusing to sign off the Treasury's numbers.

The Treasury is responsible for government accounting policy as a whole, with the head of government accounting, Jon Thompson, working there.

The accounts have been delayed, the paper said this morning. The annual report from Number 11 was published but, in a departure from convention, the department's resource accounts did not appear alongside.

A Treasury spokesman denied the NAO had threatened to qualify the accounts, the paper said. 'We are working very closely with the NAO to ensure the issues that arise as a result of Northern Rock are properly dealt with in our accounts but we still intend to publish them before the summer recess.'

Tory MP Michael Fallon was quoted saying: 'This is a fresh humiliation for Alistair Darling. He has lost control over public finances. Now it looks as if he can't get his department's books past the auditors.'

Further Reading:

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