Committee publication · Correspondence · 3 June 2025
Letter from the Chief Operating Officer relating to the May Update on the 2024-25 Department for Business and Trade Annual Report and Accounts, 20 May 2025
Summary
The Department for Business and Trade Chief Operating Officer updates the Business and Trade Committee on progress toward completing the 2024-25 Annual Report and Accounts. The NAO audit commenced 6 May 2025. Key risks centre on Post Office Limited redress schemes and British Business Bank financial instruments. The Department has met all deadlines and is working to mitigate audit delays, particularly around quarter-four valuations and redress provision modelling.
Key findings
- NAO audit of 2024-25 ARA formally commenced 6 May 2025; Department has met all agreed preparation deadlines
- Persistent audit risk: British Business Bank quarter-four valuations may take up to 90 days after 1 April 2025, delaying finalisation of accounts to early July
- Post Office Limited redress schemes remain a key audit focus; Department has provided NAO with detailed accounting papers on Horizon and Capture system redress assumptions and provisions
- Code-based audit approach for BBB financial guarantee models will improve audit timeframes but does not address valuation timeliness risk
- Department targeting pre-recess laying of 2024-25 accounts and aiming to de-risk positions for 2025-26 cycle
Tone
ProceduralTopics
public-financeauditaccounts-managementgovernment-transparency
Key actors
Tara Smith, Liam Byrne, Department for Business and Trade, National Audit Office, British Business Bank, Post Office Limited
Notable line
“The Department has undertaken significant work to address key audit risks.”
Key Quotes
“Following the meeting on 11 February 2025 it was agreed that we would keep you sighted on the progress of the 2024-25 Annual Report and Accounts (ARA) on a monthly basis.”
“… a persistent risk, not mitigated by the code-based approach, is the timeliness of quarter four valuations for BBB Group positions, which may take up to 90 days after 1 April”
“The Department continues to engage with the NAO in a positive manner on these issues and on the business-as-usual matter of completing the year-end audit.”
Source · parliament.uk record ↗