wga 201011 guidance

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Year ended 31 March 2011 1 WGA 2010/11 Guidance

Guidance to the

Whole of Government Accounts

Year ended 31 March 2011

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This document has been prepared by:

Whole of Government Accounts (WGA)Financial Management and Reporting Group

Her Majesty's Treasury1 Horse Guards Road

LondonSW1A 2HQ

April 2011

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Contents

Chapter 1 Introduction to WGA 2010/11 ............. 4

Chapter 2

Summary: Critical information ............ 5

Chapter 3 WGA process......................................... 8Chapter 4 WGA timetable ................................... 24Chapter 5 WGA bodies ........................................ 26Chapter 6 WGA 2010/11: whats new ................ 29Chapter 7 WGA 2010/11: the C-Pack .................. 32Chapter 8 WGA 2010/11: the forms ................... 36Chapter 9 Transactions between WGA bodies... 39Chapter 10 CFERs: WGA treatment .................... 53Chapter 11 Grants: WGA treatment ................... 62Chapter 12 Lottery: WGA treatment .................. 65Chapter 13 PCs: WGA treatment ........................ 69Chapter 14 Charities: WGA treatment................ 71Chapter 15 General comments and FAQ ............ 77Glossary.................................................................. 81Appendix 1: List of minor bodies ......................... 83Appendix 2: Lottery grant templates ................... 85

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Chapter 2 Summary: Critical information

2.1. Critical information summarised in this chapter include:Critical dates

Key deliverables

Eliminations

Key thresholds

Responsibilities / sign-off

Critical dates

2.2. The punctual completion of WGA returns is a crucial step toward delivery of Whole of GovernmentAccounts for 2010/11, which will be the first audited and published account. Finance Directors arereminded that, as set out in Annex 4.1 of Managing Public Money, they are responsible forpreparing consolidation data for WGA and for the accuracy of the data.

2.3. The WGA timetable applies to all central government bodies, including government departments,Non-departmental Public Bodies (NDPBs), public corporations (PCs), pension schemes, and managedfunds.

2.4. The deadlines for 2010/11 remain broadly similar to the previous year. The key deadlines are:WGA C-Packs to be submitted by Submission Audit Clearance

Central government departments and their NDPBs 29 July 2011 26 August 2011

Central government departments sub-consolidation 9 September 2011 30 September 2011

Key deliverables

2.5. The key deliverables are the C-Pack, and the upload of Resource Accounts data and CPID data intoCOINS.

2.6. Other forms which need to be completed are:Accounting test details (generated by the C-Pack)

CG-01 Agreement of Balances

CG-02 Notification of Completion of the WGA Agreement Process

CG-03 Confirmation of Minor Body Status

CG-04 Management Review Checklist

CG-05 Notification of Audit Completion

2.7. These forms are all available on the Treasury WGA website:http://www.hm-treasury.gov.uk/wga_guidance_index.htm

2.8. There may be other deliverables which a body may need to provide in specific circumstances whererelevant, such as lottery grant journals or grant-in-aid information. Please refer to all chaptersrelevant to you as they will detail additional deliverables which may be required.

Eliminations

2.9. A key part of the WGA process is the elimination of transactions and balances between WGA bodies.These must be eliminated completely and accurately for the Whole of Government Accounts to give

a true and fair view.
http://www.hm-treasury.gov.uk/wga_guidance_index.htmhttp://www.hm-treasury.gov.uk/wga_guidance_index.htmhttp://www.hm-treasury.gov.uk/wga_guidance_index.htm

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2.10. The importance of recording complete and accurate counter-party information cannot beoverstressed, as it is the only way in which transactions and balances between WGA bodies can beidentified and eliminated. Inaccurate recording of counterparty data is, by far, the biggestcontributor to delays in preparing the consolidated accounts.

Agreement thresholds

2.11. Central government departments, NDPB and administered funds must report and agree transactionsstreams and balances with other departments, NDPBs and administered funds above certainthresholds for the purposes of WGA. These thresholds are:

Counter-party:Reportingthreshold

Agreementthreshold

Central government departments1,NDPBs and administered funds

1 million 5 million

Local authorities, NHS trusts andfoundation trusts and public

corporations

1 million No agreement isrequired2

1 This includes bodies that are within the departmental resource account boundary such asprimary care trusts and executive agencies

2 No agreement is required but is recommended. Agreement of balances may be required forthese bodies in future years.

2.12. We highly recommend that bodies do agree, as well as report, all balances and transactions over1 million with central government department, NDPB and administered fund counter-parties.

2.13. This will reduce the number of reported counterparty transactions below 5 million that do notagree. When counterparty transactions do not agree, the difference between the reported amounts

is posted to a suspense account, which if material for 2010/11 may lead to an audit qualification tothe accounts. Additionally, agreeing balances and transactions over 1 million should reducefurther work that the Treasury WGA team and you may have to carry out later in the year during theeliminations process.

2.14. The reporting and agreement thresholds are reviewed annually.Responsibilities

2.15. In accordance with Annex 4.1 of Managing Public Moneythe Finance Director is responsible forpreparing the WGA return for Treasury. He or she is the Consolidation Manager, though in practicethis function is normally delegated.

2.16. The Consolidation Officer is the person who signs the Resource Accounts and the final WGA return.This Consolidation Officer will normally be the Accounting Officer or Financial Controller.2.17. If the Accounting Officer is unavailable to sign off WGA returns, in the first instance we recommend

that you send an email to the Treasury WGA team at [email protected] situation. Generally we would suggest that, in order not to delay the C-Pack process, a personwith delegated authority act on the Accounting Officers behalf in their absence, and that theAccounting Officer sign the WGA returns later.
mailto:[email protected]:[email protected]:[email protected]:[email protected]

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Actions to begin with now:

2.18. Read WGA and C-Pack Guidance, and note the key dates and flowcharts2.19. Identify CP contacts2.20. Agree balances and transactions2.21. Check SCOAs and match relationships2.22. Include WGA deadlines in your workplans2.23. Book any COINS or C-Pack training you may need2.24. Engage with auditors - check if subject to audit and agree deadlines

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Chapter 3 WGA process

3.1. Information included in this chapter:Stages of the WGA process

Key deliverables are summarised for all bodies in the table on page 20.

Checklist for preparers completing the C-Pack is on page 21.

Flowchart summarising the completion of the C-Pack is on page 22.

Flowchart summarising the completion of sub-consolidations is on page 23.

Stages of theWGA process

3.2. The stages of the WGA process can be summarised as follows:

First: Actions to begin with now

Stage 1: Identify and agree balances and transactions with other WGA bodies

Stage 2: Enter data into the C-Pack and complete the validation checks

Stage 3: Complete the Management Review and sign-off the C-Pack

Stage 4: Generate upload files and submit them into COINS

Stage 5: Audit of the C-Pack

Stage 6: Process audit journals and final sign-off

Stage 7: Departmental sub-consolidations

Stage 8: Audits of departmental sub-consolidations

Final: WGA eliminations and analytical review

3.3. For the timetable for each stage, please refer to Chapter 4 WGA timetable.

3.4. Read the WGA and C-Pack Guidance, and note the key dates and flowcharts3.5. Identify counter-party contacts3.6. Agree balances and transactions3.7. Check SCOAs and match relationships3.8. Include WGA deadlines in your workplans3.9. Book any COINS or C-Pack training you may need3.10. Engage with auditors - check if subject to audit and agree deadlines

FIRST: Actions to begin with now

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Actions

3.11. Read and follow the Guidance on how to identify and agree counter-party transactions in Chapter 9Transactions between WGA bodies, and how to complete the forms CG -01 and CG-02 in Chapter 8WGA 2010/11: the forms.

3.12. Identify and agree counter-party transactions.3.13. Complete form CG-01 Agreement of transactions and balances.3.14. Complete form CG-02 Notification of Completion of the WGA Agreement process.3.15. Departments should complete the CG-02 Annex Departments balances with Local Authorities.3.16. All bodies (except NDPBs) should send the CG-02 and supporting papers to the Treasury WGA Team.

NDPBs should send a copy to their sub-consolidating departments.

Timeline

3.17. CG-01 Agreement of transactions and balances should be completed by 3 June 2011.3.18. CG-02 Notification of Completion of the WGA Agreement process and the Annex Department s

balances with Local Authorities should be submitted by 10 June 2011.

Commentary

3.19. The forms are available on the Treasury WGA website: http://www.hm-treasury.gov.uk/wga_guidance_index.htm.

3.20. Key point to note:If there are significant differences (more than 200,000) between amounts recorded by bodies, thenexplanations and supporting documentation need to be compiled and provided with the CG-01.

Actions

3.21. Read and follow the Instructions for the Completion of the C-Pack and Chapter 7 of this GuidanceWGA 2010/11: the C-Pack.

3.22. Enter the following data into the C-Pack:(1) financial information, based on audited resource or statutory accounts, and(2) balances and transactions with other WGA bodies.

3.23. Complete the C-Pack validation checks and accounting tests.3.24. Complete the C-Pack Trouble Spot Checklist on page 21.Timeline

3.25. Before 29 July 2011, beingthe deadline for submission of the C-Packs.Commentary

3.26. The C-Pack Trouble Spot Checklist on page 21 lists areas that many preparers have difficulty withand should double-check.

Stage 2: Enter data into the C-Pack and complete the validation checks

Stage 1: Identify and agree balances and transactions with other WGA bodies

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3.27. C-Pack preparers should ensure that they collect evidence of agreed WGA counter-party balances tosupport CPID balances reported in the C-Pack.

3.28. Double-check that the common mapping and CPID errors are correct in your C-Pack:3.29. Three Common mapping errors:

Programme expenditure - should be properly analysed and allocated to the correct SCOAs

(eg salary, costs of goods and services, etc should be allocated to the relevant SCOAs)Grants should be properly analysed and allocated to the different grant SCOAs(see Chapter 11 for further guidance)

CFERS ensure you comply with the guidance in Chapter 10

3.30. Common CPID errors:Failing to report balances with expenditure with local authorities, pension schemes withinWGA, and grants appropriately.

Failing to report balances that have been agreed.

Failing to report balances for SCOAs that are expected to have CPID(generally the SCOAs which generate rows in the CPID Input sheet of the C -Pack)

Agency transactions see Chapter 11 for further guidance

investments in government securities for investments of gilts or treasury bills use CPID forthe National Loans Fund (NLF888); for investments of cash deposits use CPID for the DebtManagement Office or DMO (DMA888)

taxation and social security receivables and payables should be coded to IRT813

Actions

3.31. The C-Pack must be subject to management review and the WGA form CG-04 Management ReviewChecklist completed by the Consolidation Manager.

3.32. The C-Pack preparer should print out the following:(1) the C-Pack financial statements and notes(2) The C-Pack trial balance(3) The C-Pack CPID Input sheet(4) the C-Pack validation sheets: validation errors, accounting test details, and CPID errors(5) the C-Pack Trouble Spot Checklist(6) The WGA Management Review checklist (CG-04).

3.33. The Consolidation Manager should:(1) review the documents listed above;(2) sign the certificate at the bottom of the C-Pack Statement of Financial Position;(3) print and sign the C-Pack financial statements (i.e. the Statement of Financial Position,

Statement of Comprehensive Income and Cash Flow Statement);

(4) complete the WGA Management Review checklist; and(5) confirm that the COINS uploads should be generated.

Stage 3: Complete the Management Review and sign-off the C-Pack

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Stage 4: Generate upload files and submit them into COINS

3.34. This stage is completed when the Consolidation Manager confirms that the COINS upload files canbe submitted.

Timeline

3.35. Before 29 July 2011, beingthe deadline for submission of the C-Packs.Commentary3.36. WGA Management Review checklist this must be completed.3.37. It provides assurance that bodies are submitting WGA data that is in line with their resource

accounts and that the quality of the data (particularly the counter-party data) is of the standardrequired to prepare Whole of Government Accounts that present a true and fair view.

3.38. The management review checklist is split into two parts.(1) Part 1 should be completed by all central government bodies (including sub-consolidatingdepartments in respect of the departmental submission).(2) Part 2 should be completed by sub-consolidating departments in respect of their sub-consolidations.

3.39. The management review checklist should be completed by the Consolidation Manager at the pre-audit stage and signed off by the Consolidation Officer at the post-audit stage.

3.40. Consolidation Managers should review the completed management review checklist and supportingworking papers, and should check that all tasks on the checklist have been completed. They shouldinitial the checklist to confirm that they have completed their review and that they are satisfied thatit is supported by appropriate working papers. Finally, they should sign the checklist to confirm thatthey are satisfied that management review of the WGA submission has taken place.

Actions3.41. The C-Pack preparer should:

(1) Generate the upload files by pressing the Create Upload Files buttons in the C-Pack (step 7)(2) Send the accounting test detail sheet to the Treasury WGA team

([email protected])

(3) Submit the upload files into COINS or provide them to your sub-consolidating departmentor Treasury WGA team to submit into COINS.

(4) Obtain a COINS trial balance and COINS CPID report (from COINS, or if no access to COINSfrom your sub-consolidating department or Treasury WGA team)

(5) Reconcile the COINS trial balance to the C-Pack trial balance, and check the COINS CPIDreport to the C-Pack CPID Input sheet.

3.42. Sub-consolidating departments or Treasury who have uploaded files into COINS on behalf of otherWGA bodies must send a copy of the COINS trial balance and the CPID report from the COINS CIMmodule to the C-Pack preparer.

Timeline

3.43. By 29 July 2011.

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Commentary

(1) Generate upload files

3.44. To see how to generate upload files in the C-Pack, please refer to the Instructions for theCompletion of the C-Pack.

3.45. Key point to note: Once the Resource Account and CPID upload files are generated in the C-Pack,you will not be able to generate another upload file.

3.46. Any adjustments, whether identified by you or the auditor, can only be made once using theautomated journal upload facility in the C-Pack, as set out in the Instructions for the Completion ofthe C-Pack. Subsequently, adjustment journals will have to be processed manually.

3.47. Once the Create Upload Files button is clicked, the resource data is put into an upload file ANDcopied into the pre-audit column in the Resource Accounts Audit Journal tab in the C-Pack.Similarly, the CPID data is put into an upload file AND copied into the pre- audit column in the CPIDAudit Journal tab in the C-Pack. This information should be used to check what is in the pack andcompare it to what is in COINS.

(2) Send accounting test details to Treasury

3.48. Ensure the descriptions for any accounting test failures are detailed.(3) Submit the upload files into COINS

3.49. To see how to submit upload files into COINS, please refer to the Instructions for the Completion ofthe C-Pack.

3.50. All bodies should also submit the C-Pack Resource Account and CPID upload files as follows:Body Action Due date

All bodies Email the accounting test details to the TreasuryWGA team [email protected].

29 July 2011

All centralgovernment bodieswith access to COINS(except NDPBs)

Submit Resource Account and CPID upload filesinto COINS.

Print a copy of the COINS trial balance.

29 July 2011

All centralgovernment bodieswithout access toCOINS(except NDPBs)

Provide to the Treasury WGA team: (1) anelectronic version of the C-Pack and the uploadfiles, and (2) a hard copy of the ConsolidationManagers certificate and signed financialstatements in the C-Pack.

Obtain from the Treasury WGA team: a copy ofthe COINS trial balance.

29 July 2011

NDPBs Provide to the sub-consolidating department: (1)an electronic version of the C-Pack and the uploadfiles, (2) the Accrued GiA worksheet if required,and (3) a hard copy of the ConsolidationManagers certificate and signed C-Pack financialstatements.

Obtain in return: a copy of the COINS trial balancefrom your sub-consolidating department.

29 July 2011

Sub-consolidatingdepartments onbehalf of NDPBs

Submit Resource Account and CPID upload filesfrom NDPBs into COINS, and send a copy of theuploaded trial balance in COINS as confirmation of

the upload to NDPBs.

5 August 2011

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(4) Obtain a COINS trial balance and COINS CPID report

3.51. Sub-consolidating departments or Treasury who have uploaded files into COINS on behalf of otherWGA bodies must send a copy of the COINS trial balance and CPID report from the COINS CIMmodule as confirmation of the upload to the C-Pack preparer.

3.52. The COINs trial balance should be checked back to the C-Pack trial balance. When the ResourceAccounts upload button is clicked, the data is put into an upload file AND copied into the pre-auditcolumn in the Resource Accounts Audit Journal tab in the C-Pack. C-Pack preparers can comparethe COINS trial balance to the C-Pack trial balance or the pre-audit column in the C-Pack ResourceAccounts Audit Journal tab.

3.53. The CPID report from the COINS CIM module should be checked to the CPID data in the C-Pack.When the upload button is clicked, the CPID data is put into an upload file AND copied into the pre-audit column in the CPID Audit Journal tab in the C -Pack. The COINS CPID data can be checkedagainst the pre-audit column in the C-Pack CPID Audit Journal tab.

3.54. The purpose of this check is to confirm that the data being audited is the same as data submitted inCOINS.

Expected differences between COINS and C-Pack trial balances

3.55. There are some differences which you should expect to see when comparing the C-Pack trial balanceand the COINS trial balance. They are:

(1) SCOAs 91111111 and 91111112 - which are not part of a bodys normal trial balance, butare automatically created by the C-Pack and are used to check how many times data isuploaded into COINS as part of the WGA internal control checks.

(2) SCOA 83221010 - which records the version of the C-Pack you are using. It will contain azero initially since the C-Pack starts on v1.0. Please do not delete this. For further details,see the Instructions for the Completion of the C-Pack.

(3) SCOAs for notional charges reversals - which are included in the resource accounts ofcentral government departments but not recognised under accounting standards so arereversed in the C-Packs.

(4) 8-series SCOAs which provide additional information necessary for the cash flow statementand disclosure notes in the consolidated accounts.

3.56. Otherwise, the C-Pack trial balance and the COINS trial balance should agree to each other.

Actions

3.57. Confirm with your auditors what documents they require for the WGA audit. We would expectthat, as a minimum, hard copies of the following documents should be provided to the auditors:(1) The completed C-Pack financial statements;(2) Evidence of agreed WGA counter-party balances to support CPID balances reported in the C-

Pack;

(3) The Consolidation Managers signature at the bottom of the C-Pack Statement of FinancialPosition;

(4) COINS trial balance and CPID report; and(5) Completed management review checklist.

Stage 5: Audit of the C-Pack

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Timeline

3.58. The deadline for audit clearance is 26 August 2011.Commentary

3.59. WGA submissions must be audited.3.60. The extent of the audit required will be determined by the National Audit Office (NAO). Bodiesshould talk to their auditors on this issue. The auditors of WGA submissions will provide their audit

report to the NAOs Central WGA Team on completion of their audits.

3.61. Note that the NAO and other auditors have a strong preference for completing the audit work onthe packs at the same time as the audit of bodies statutory accounts. This practice aids efficiencyfor both the department and the auditors who will complete the audit of the pack at the same timeas the audit of the statutory accounts.

3.62. Audit gateweay tests: This year, NAO has introduced gateway tests that WGA submissions mustsatisfy before the auditors will start work. They have advised auditors not to proceed with a WGAaudit until a C-Pack has passed the gateway tests.

3.63. The audit gateway tests are:Is the HMT management review checklist complete?

Are reasonable, evidence-based explanations provided for Warnings flagged up on theAccounting Test sheet in the C-Pack?

Is an evidence/supporting information pack available to auditors?

Do the gross income and expenditure, net surplus/deficit, gross assets and liabilities reconcile tothe statutory accounts?

Does the cashflow balance?

Has the body clicked C-Pack steps up to and including "create CPID upload" and "create resourceaccount upload" on the admin page of the C-Pack?

Is the C-Pack consistent with what has been uploaded onto COINS?

3.64. In particular, the auditors will be checking that the C-Pack data is consistent with COINS data andthat the management review checklist has been completed thoroughly.

3.65. For more details, please speak with your auditor.

Actions

3.66. The C-Pack preparer should:(1) Make adjustments in the proforma sheets in the C-Pack.(2) Generate an automated journal for Resource Accounts and CPID data in the C-Pack(3) Submit the journal upload files into COINS or provide them to your sub-consolidating

department or Treasury WGA team to submit into COINS.

(4) Obtain an updated COINS trial balance and COINS CPID report.(5) Confirm that the updated COINS trial balance and COINS CPID report agrees to the revised

C-Pack.

Stage 6: Process any audit journals and final sign-off

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3.67. Sub-consolidating departments or Treasury who have uploaded journals into COINS on behalf ofother WGA bodies must send a copy of the updated COINS trial balance and the CPID report fromthe COINS CIM module to the C-Pack preparer.

3.68. Details of any agreed audit adjustments that bodies are not able to upload into the ATM module ofthe COINS system (because, for example, they do not have access to the ATM module) should beattached to the CG-05 form and provided to the Treasury WGA team. The WGA team should process

the audit adjustments and provide a trial balance from COINS confirming the adjustments have beenmade.

3.69. Auditors should authenticate the C-Pack as audited.3.70. Consolidation Officers must sign the review documents being:

(1) the amended C-Pack financial statements.(2) Consolidation Officers certificate at the bottom of the audited C-Pack Statement of

Financial Position.

(3) Management review checklist.3.71. Bodies (other the NDPBs) should send the signed review documents to the Treasury WGA team.

NDPBs should send the signed review documents to their sub-consolidating departments.

3.72. Bodies (other than NDPBs) should complete form CG-05 Notification of Audit Completion andemail it to the Treasury WGA team [email protected]. NDPBs should completeform CG-05 Notification of Audit Completion and email it to their sub-consolidating department.Read and follow Chapter 8 of this Guidance on how to complete this form.

Timeline

3.73. The deadline for audit clearance is 26 August 2011.Commentary

3.74. To see how to make adjustments and use the automated journal facility in the C-Pack, please referto the Instructions for the Completion of the C-Pack.

3.75. Key points to note:(1) Adjustments should only be made through the C-Pack.(2) The automated journal facility can be made only once in the C-Pack.(3) Adjustments should be checked that theyre in COINS.

3.76. Errors in the data submitted by NDPBs: If a sub-consolidating department identifies errors in thedata submitted by NDPBs, they should request the NDPB to make the necessary amendment asdescribed above.

3.77. To make adjustments amend the individual proforma worksheets in the C-Pack and then use the C-Packs automated journal production facility (pushing the Audit Journal buttons in the Adminworksheet) which produces two new journal upload files which need to be uploaded into COINS.This can only be done once in the C-Pack. If a body needs to make later adjustments, journals mustbe done manually.

3.78. Details of any agreed audit adjustments that bodies are not able to upload into the ATM module ofthe COINS system (because, for example, they do not have access to the ATM module) should beattached to the CG-05 form and provided to the Treasury WGA team. The WGA team should processthe audit adjustments and provide a trial balance from COINS confirming the adjustments have beenmade.

3.79. No journal adjustments: If you do not need to make journal adjustments, a nil return should beproduced and signed off.

3.80.

Trial balance check: The revised COINs trial balance should be checked back to the revised C-Packtrial balance. When the Create Upload Files button is clicked in the C-Pack, the data is put into an

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upload file AND updates the Resource Accounts Audit Journal tab in the C-Pack. C-Pack preparerscan compare the updated COINS trial balance to the updated the C-Pack Resource Accounts AuditJournal tab.

3.81. CPID check: The revised CPID report from the COINS CIM module should be checked to the revisedCPID data in the C-Pack. When the Create Upload Files button is clicked in the C-Pack, the CPIDdata is put into an upload file AND updates the CPID Audit Journal tab in the C -Pack. The revised

COINS CPID data can be checked against the revised C-Pack CPID Audit Journal tab.3.82. Audit authentication: When the audit is completed and amendments made to the C-Pack, the

auditors will authenticate the C-Pack confirming that it has been audited, by adding an indicator(which only they can do using a special password) to the electronic version of the C-Pack. Seeguidance notes on the completion of the C-Pack. This provides assurance that the final audited C-Pack data uploaded into COINS is the final data agreed with the auditors.

3.83. Review documents: Signed hard copies of these documents are required to provide some assuranceto departments and the Treasury that the final submitted data is correct. It is similar to theAccounting Officer signing the Resource Accounts.

3.84. The CG-05 form Notification of Audit Completion should include details of any agreed auditadjustments that bodies are not able to upload into the ATM module of the COINS system. For more

details regarding the form see Chapter 8 WGA Forms.

3.85. The deliverables are summarised in the table on page 20.

3.86. A flow-chart for completing the C-Packs is provided at the end of this chapter.Actions

3.87. Sub-consolidating departments must:(1) complete the sub-consolidation of the data provided by bodies within their group,(2) ensure eliminations (in the COINS ELM module) have been posted, and(3) investigate and resolve mismatches, using the Matches Report. All no matches and

mismatches within the group must be resolved. All matches and mismatches above 5million with other central government WGA bodies must be resolved.

3.88. When sub-consolidating departments have completed the sub-consolidation of group data,Consolidation Managers should:

(1) print a COINS trial balance for the Group, which they should sign,(2) generate a COINS CPID Report, an ELM matches report, and an ATM report,(3) complete Part 2 of the management review checklist. They should check that all tasks in

have been completed and initial the management review checklist to confirm that they havecompleted their review and that they are satisfied that it is supported by appropriateworking papers, and

(4) Reconcile the COINS trial balance to the C-Pack trial balance, and check the COINS CPIDreport to the C-Pack CPID Input sheet.

3.89. The Consolidation Officer should review the completed management review checklist andsupporting working papers and sign Part 2 of the checklist to confirm that they are satisfied thatmanagement review of the sub-consolidation has taken place. The C-Pack and the reports should bemade available to the auditors along with the completed Part 2 of the checklist. Part 2 of thechecklist should also be copied to the Treasury WGA Team.

Stage 7: Departmental sub-consolidations

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Deliverables

3.90. By 9 September 2011, sub-consolidating departments should send:(1) the documents listed in paragraph 3.99 below to the auditors.(2) a copy of the completed Part 2 of the Management Review to the Treasury WGA team.(3) a summarised CG-02 for the group, including details of significant differences and other

exceptions, to the Treasury WGA team.

Timeline

3.91. By 9 September 2011.Commentary

3.92. The COINS sub-consolidation process is described in the COINS manual, which is available onwww.coins.gsi.gov.uk.

3.93. Forms: Sub-consolidating departments must obtain CG-02, CG-04 and CG-05 forms from bodieswithin their group.

3.94. Timing: Sub-consolidating departments should not wait for every WGA body in its group to havedata in COINS before running the eliminator module. This has delayed sub-consolidations in thepast which in turn has caused delays to the WGA process. Investigation of mismatches can begin assoon as two bodies in the group have uploaded data, although the investigation may not befinalised until every body has uploaded their data.

3.95. Errors in C-Packs: C-Packs from other bodies should not be amended by the sub-consolidatingdepartment, but should be returned to that body who should make adjustments. If the C-Packneeds to be unlocked so that corrections can be made, please contact the Treasury WGA Team.

3.96. Mismatches: All no matches and mismatches within the group must be resolved. All matches andmismatches above 5 million with other WGA bodies must be resolved.

The Matches Report

3.97. There are 3 WGA reports providing counter-party data that has been reported by WGA bodies:Report Availability

COINS CIM CPIDreport

available from COINS CIM module showing counterparty data reportedby a body

COINS ELM matchesreport

available from COINS ELM module showing counterparty data within agroup - used by sub-consolidators to identify mismatches within theirsub-consolidation

Matches Report easy to use matches analysis prepared by the Treasury WGA Team

showing all counterparty data of all WGA bodies submitted into COINS,available on Civil Pages or from Treasury WGA Team- used to identifymismatched data which needs to be resolved

3.98. Details regarding the Matches Report and how to use it are provided in Chapter 8 of this Guidance.
http://www.coins.gsi.gov.uk/http://www.coins.gsi.gov.uk/http://www.coins.gsi.gov.uk/

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Actions

3.99. Confirm with your auditors what documents they require for the subconsolidation audit. We wouldexpect that, as a minimum, hard copies of these documents should be provided to the auditors:

(1) The completed C-Pack financial statements;(2) COINS trial balance signed by the Consolidation Manager;(3) CPID Report, an ELM matches report and an ATM report generated by the COINS system.(4) Matches Report; and(5) Part 2 of the management review checklist, completed and signed by the Consolidation

Manager.

3.100. Any agreed audit adjustments should be processed and a revised COINS trial balance for the Group,including a revised ELM report and Matches Report should be produced.

3.101.

The Consolidation Officer should sign the revised COINS trial balance and Statement of FinancialPosition and Statement of Comprehensive Income for the Group.

3.102. At the end of the audit, sub-consolidating departments should send to the Treasury WGA team:(1) The CG-05 form Notification of Audit Completion; (2) A hard copy of the revised COINS trial balance, Statement of Financial Position and

Statement of Comprehensive Income signed by the Consolidation Officer; and

(3) A hard copy of the completed management checklist signed by the Consolidation Officer.Timeline

3.103. The deadline for audit clearance of sub-consolidations and submission of CG-05 to the Treasury is30 September 2011.

Commentary

3.104. Sub-consolidating departments should process the audit adjustments, using the COINS AdjustmentTracking Module (ATM) to post audit adjustments received from NDPBs and agreed auditadjustments arising from the audit of the subconsolidated account. They should ensure eliminationsin the COINS Eliminations Module (ELM) have been posted before the revised sub-consolidation packis produced. Sub-consolidating departments should then produce a revised COINS trial balance,Statement of Financial Position, Statement of Comprehensive Income and CPID report, and updatethe management review checklist.

3.105. The Consolidation Officers should sign the revised and audited COINS trial balance for the Group inline with the approach in place for Accounting Officers signing off resource accounts prior to auditsign off.

3.106. When the audit of the sub-consolidated group account is completed sub-consolidating departmentsshould send the CG-05 Notification of Audit Completion form to the Treasury WGA team. Thisconfirms that the audit of the sub-consolidated account has been completed and provides details ofany agreed audit adjustments that have not been processed.

3.107. A flow-chart for sub-consolidating departments is provided at the end of this chapter.

Stage 8: Audits of departmental sub-consolidations

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3.108. When the audited WGA data has been submitted, the Treasury WGA team start working on theWGA central eliminations and analytical review. This work may require the WGA team to contactbodies and departments to resolve mismatches or errors, such as balances that should be zero.

3.109. If you have a mismatch that is identified by the WGA team who bring it to your attention, you mustinvestigate it and provide evidence to the team, so it can be resolved. This is the most efficient wayof resolving a mismatch, as you would have more knowledge of your business than the central WGAteam. The implication of not resolving these mismatches is that the accounts could be qualified,therefore it is vital that they are resolved. Your responsibility to investigate these mismatches is anessential part of publishing unqualified accounts in the most efficient way.

Finally: WGA eliminations and analytical review

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C-Pack Completion: required deliverables

NDPBs Other WGA bodieswithout access to COINS

Other WGA bodies withaccess to COINS

The deliverable is: And should be sent to:

DUE DATE: 29 July 2011 (Pre-audit)

1. Completed C-Pack workbook1 Sub-consolidating dept. 1and auditor

Treasury WGA Team andauditor

Auditor

2. Printed version of the C-Pack Statement ofFinancial Position and attached certificate

signed by Consolidation Officer

Sub-consolidating dept.and auditor


Auditor

3. Resource account upload file and counterparty identification upload file


Treasury WGA Team Treasury WGA Team andauditor

4. Accounting test details Treasury WGA Team andauditor

Treasury WGA Team Treasury WGA Team

5. Part 1 of the Management Review Checklist Sub-consolidating dept.and auditor



DUE DATE: 26 August 2011 (post-audit)

1. Amended C-Pack workbook2 Sub-consolidating dept.and auditor


Auditor

2. Printed version of the amended C-PackStatement of Financial Position and attachedcertificate signed by the ConsolidationOfficer3



Auditor

3. Resource accounts audit journal and CPIDaudit journal (Amending Submitted Data)3



Auditor

4. CG-05 Notification of Audit Completion Sub-consolidating dept. Treasury WGA Team Treasury WGA Team1NDPBs may also need to provide to their sub-consolidating department the Accrued GiA worksheet refer to chapter 11 of this guidance.

2This should be the C-Pack that was sent to the auditor as amended to correct errors that you, your Sub-consolidating department (if applicable) andthe auditor identified, and you agreed with the auditor should be made. You should record in the peach coloured cells on the right hand side of eachproforma the corrections that you made so that there is a clear trail.

3 If you do not need to make any adjustments: send the original C-Pack and a copy of the Statement of Financial Position certificate signed by theConsolidation Officer to confirm that adjustments are not required; and produce nil audit journals (which should also be signed).

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Completing the C-Pack - Checklist

Trouble spots - have you got this right?

There are some areas that many preparers have difficulty with and should double-check.

When youve completed the C-Pack, check:

the mapping of SCOAs is correct for common errors see paragraph 3.29 CPID is correct for common errors see paragraph 3.30 you have put CPID against the expected SCOAs generally the SCOAs which

generate rows in the CPID Input sheet of the C-Pack

SCOAs in CPID are in the right match relationships refer to chapter 9 if you needmore guidance

There is evidence of agreed CPID amounts to support those reported in the C-Pack Opening balances and PPA these must be reconciled Cash flow statement does it balance? Grants check SCOAs are right and check CPID data has been provided - refer to

chapter 11 if you need more guidance

Lottery grants refer to chapter 12 if you need more guidance Financial Instruments refer to paragraphs 7.14-17 if you need more guidance PFI disclosures refer to paragraphs 7.18-20 if you need more guidance Reserves have you put amounts to the right SCOAs/lines? Accounting test failures have you provided detailed explanations? Management review checklist is it complete? Is the C-Pack consistent with what has been uploaded onto COINS?

Sub-consolidations:

Have you printed out the matches report and resolved all no matches andmismatches within your group?

Have you resolved no matches and mismatches above 5 million with otherbodies?

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Completing the C-Pack - Flowchart

Validate

Validate

Enter resource accounts datainto C-Pack.

Report CPID balances andtransactions in C-Pack.

Generate resource accountand CPID uploads, andaccounting tests sheet.

Upload into COINS, or send tosub-consolidating departmentor HMT as appropriate, withsigned C-Pack review papers.

Finalise unaudited C-Pack.Complete CG-04 ManagementReview Checklist. Check COINSand C-Pack trial balance & CPIDdata. Sign a hard copy of the C-Pack financial statements.

Send accounting tests sheetto HMT.

Provide C-Pack to auditor Send C-Pack and signed C-Pack review papers to auditor.

Agree any audit adjustments.Adjust the C-Pack using theauto journal facility andgenerate upload files.

Departments or HMTupload data into COINS andreturn COINS trial balance.

Upload journal adjustmentsinto COINS, orsend to sub-consolidatingdept or HMT as appropriate.

Department or HMT uploadaudit adjustments into COINSand return COINS trial balance

Send auditor-authenticated C-Pack and review papers tosub-consolidating dept orHMT as appropriate.Return to HMT the formCG-05 Notification of AuditCom letion.

Complete agreement ofbalance forms and CG-02.

Finalise audited C-Pack. Checkaudited COINS & C-Pack trial

balance and CPID data agree.Sign-off final C-Pack financialstatements and CG-04Management review checklist.

Send completed C-Pack papersto auditor.

Auditors authenticate finalC-Pack in the electronic

version of the pack.

Next phase: Sub-consolidation by departments & WGA consolidation by HMT

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Completing sub-consolidations - Flowchart

Upload C-Pack data into COINS.

Obtain auditor-authenticatedC-Packs from bodies within therou .

Run Eliminator module in COINSto remove all inter-group trading.

Investigate material mismatchesand produce journals to correct.

Produce sub-consolidationC-Pack.

Provide auditors with:- sub-consolidated C-Pack,- COINS trial balance, CPIDreport, ELM report, and

Matches Report- COINS ATM report- review a ers

Return to HMT the formCG-05 Notification of Audit

Completion and signedreview a ers.

Complete departmental C-Packas described above.

Print a COINS trial balance forthe group, COINS CPID report,ELM report and MatchesReport.

Check COINS and C-Pack trialbalance and CPID data agree.Complete CG-04 ManagementReview Checklist, signed by theConsolidation Manager.

Produce the ELM report andreview the Matches Report.

Agree any audit adjustments.Adjust the C-Pack using the ATMmodule in COINS.

Finalise audited C-Pack.Check audited COINS and C-Packtrial balance and CPID data agree.Sign-off final C-Pack financialstatements and CG-04Management Review Checklist.

Provide auditors with finalsub-consolidated C-Pack.

Provide C-Pack papers to auditors.

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Chapter 4 WGA timetable

4.1. Information included in this chapter:Timetable for WGA submissions

Key dates

4.2. The WGA timetable applies to all central government bodies, and the key deadlines for submissionof the WGA C-Packs are:

WGA submissions from Submission ofthe C-Pack

Audit Clearance

Central government bodies 29 July 2011 26 August 2011

Central government departments sub-consolidation 9 September 2011 30 September 2011

4.3. It is essential that these deadlines be met,so that the overall process and publication of the accounts are not delayed.4.4. The timetable above does not apply to the Devolved Administrations and their sponsored bodies,

local authorities, and NHS trusts and foundation trusts, all of which are covered by separatearrangements with deadlines incorporated in specific performance agreements.

4.5. Note that the COINS ATM module will be closed on 4 November 2011. After that, no journaladjustments can be made by departments, and can only be made by the Treasury WGA team.

4.6. Key dates are set out on the next page.Action Required

4.7. Consolidation Officers and Consolidation Managers should note these deadlines and ensureappropriate action is taken to meet deadlines.

4.8. Consolidation Managers should draw the contents of this note to the attention of all staff that willbe involved in the preparation and submission of data for the Whole of Government Account.

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WGA key dates

2011 Dates Deadline for...

April and May Service providers to initiate agreement of transaction streams and balances

with other WGA (see Chapter 9 for more details)

6 May Details of WGA contacts to be provided to HMT (see Chapter 9 for moredetails)

20 May Purchasing entity to initiate the agreement process if they have not received aAgreement of Balances form from the service provider (see Chapter 9 for moredetails)

20 May Final date for alterations to the minor bodies list for 2010/11, after which nofurther alterations will be accepted (see Chapter 5 for more details)

3 June Agreement of transactions and balances with other WGA bodies(see Chapter 9 for more details)

10 June Submission of CG-02 Notification of Completion of the WGA AgreementProcess form by central government bodies (see Chapter 9 for more details)

10 June Provision of counter party information by central government departments inrespect of local government bodies (see Chapter 8 for more details)

22 July Submission of CG-03 Confirmation of Minor Body Status form by any bodythat believes it should be treated as minor for 2011/12 (see Chapter 5 formore details)

29 July WGA submissions by all central government bodies

26 August Audit completion of central government WGA submissions

26 August Submission of CG-05 Confirmation of Audit Completion by all centralgovernment bodies (refer Chapter 3 for more details)

9 September WGA submissions by sub-consolidating government departments

30 September Audit completion of sub-consolidating government departments WGAsubmissions

30 September Submission of CG-05 Confirmation of Audit Completion for sub-consolidating departmental submissions (refer Chapter 3 for more details)

4 November COINS ATM module will be closed (refer para.4.5 for more details)

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Chapter 5 WGA bodies

5.1. Information included in this chapter:List of WGA bodies

CPID

The WGA boundary

Designation order

Types of central government WGA bodies

Minor bodies

List of WGA bodies

5.2. A list of all WGA bodies within the WGA boundary is on the Treasury WGA website:http://www.hm-treasury.gov.uk/wga_guidance_index.htm

5.3. This spreadsheet contains the WGA List of Bodies and Counter-Party Identifications (CPIDs) for2010/11. It also provides details of new bodies or CPIDs added and body names or CPIDs that havebeen deleted or replaced since the previous year.

Counter Party Identifier (CPID) code

5.4. Generally, each WGA body within the WGA boundary has a unique CPID code issued by HMTreasury. This CPID is used to identify other WGA bodies in the agreement process for agreeingtransaction streams and balances between WGA bodies.

5.5. Some bodies may not have their own CPID and will take on another bodys CPID. For example, abody may be part of a department. In this case, note that some CPIDs, in effect, represent adepartments resource account, which may be a consolidation of the core departments account and

the accounts of a number of executive agencies, which will not have their own CPIDs. For example,the Highways Agency is part of the Department for Transport.

5.6. Sub-consolidating departments should send an email to the Treasury WGA team to advise when abody enters or leaves their group.

The WGA boundary

5.7. Her Majesty's Treasury prepares WGA for the whole of the UK public sector (central government,local government and public corporations) under section 9 of the Government Resources andAccounts Act 2000 which requires the Treasury to prepare a consolidated set of accounts for agroup of entities each of which appears to the Treasury to exercise functions of a public nature, or[are] entirely or substantially funded from public money.

5.8. When determining the WGA boundary, the Treasury identifies bodies which exercise functions of apublic nature, or [are] entirely or substantially funded from public money by reference to the Officefor National Statistics (ONS) classification of public bodies for the purposes of the national accounts.

5.9. Public sector entities that are considered minor are excluded from the WGA consolidation. Moredetails of minor bodies are provided below.

5.10. Note that Machinery of Government (MoG) changes (where a department structure changes as aresult of changes to ministerial responsibilities) do not change the WGA boundary as they areinternal government reorganisations. Details regarding machinery of Government changes can befound on the website of the Cabinet Office(http://www.cabinetoffice.gov.uk/reports/government_changes.aspx).

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Designation Order

5.11. Bodies that are designated have a legal obligation to provide WGA information to the Treasury.5.12. The Whole of Government Accounts (Designation of Bodies) Order 2011 (the Designation Order)

is the statutory instrument which identifies the bodies to be included in the consolidated WGA forthe year ending 31 March 2011, subject to the comments below.

5.13.

The composition of central government and to a lesser extent public corporations changes each yearas bodies are created, merged or dissolved. Therefore, the Designation Order must be madeannually in respect of each set of accounts towards the end of the financial year or shortlythereafter to reflect the final scope of the WGA boundary.

5.14. Certain bodies that must provide WGA information are not designated:Health sector bodies are not included in the Designation Order since the audited financialinformation they are required to provide under other legislation for summarised healthaccounts is also used for WGA purposes.

Northern Ireland bodies that are subject to the requirements of the Government Resourcesand Accounts (Northern Ireland) Act 2001 are designated by the Northern IrelandDepartment of Finance and Personnel.

Bodies whose activities are confined to Scotland are not covered by this order either sincethe Scottish Executive relies either on administrative powers or the Public Finance andAccountability Act (Scotland) 2001 to collect audited financial information from them.

Types of central government WGA bodies

5.15. WGA covers the whole of the UK public sector: central government, local government and publiccorporations. Within central government, there are 3 common types of bodies: executive agencies,NDPBs and PCs.

5.16. Executive Agencies: These are well-defined business units that carry out services or functions. Theycan be set up or disbanded without legislation, and they are organisationally independent from the

department, although they are shown in the departmental accounts. Legally, they act on behalf ofthe secretary of state and are indistinguishable from the department itself. Therefore they do nothave their own CPID and instead take on the CPID of their department.

5.17. NDPBs: A non-departmental public body (NDPB) is a body which plays a role in the processes ofnational government, but is not a government department or part of one. NDPBs are established bystatute and carry out administrative, regulatory and commercial functions. They employ their ownstaff and are allocated their own budgets. NDPBs are subject to external audit. NDPBs will havetheir own CPID.

5.18. PCs: Public corporations (PCs) undertake or deliver a public service in a given industry. They havesubstantial day-to-day operating independence and are governed by a board. Some publiccorporations, which are not self-financing, receive a subsidy or grant. PCs will have their own CPID.

Minor bodies

5.19. Attached in Appendix 1 is a list of minor bodies for 2010/11.5.20. Minor bodies do not need to complete a WGA C-Pack and do not have any WGA audit

requirements. Minor bodies are also not required to participate in the agreement of balances andtransactions process.

5.21. To qualify for minor body status, bodies must be below 10 million for all three criteria below:a) Gross annual expenditure during the yearb) Gross annual income during the yearc)

Gross assets as at year end

d) Gross liabilities as at year end

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5.22. Bodies that exceed the 10 million threshold for at least one of the above criteria will not be eligiblefor minor body status.

5.23. The categorisation of bodies is based primarily on their size in the preceding year.5.24. Where a body has been treated as a minor body but (1) is expected to grow substantially between

years, or (2) is expected to grow temporarily due to abnormal workloads, or (3) where machinery ofgovernment changes have taken place or are planned, then it should contact the Treasury WGA

team for a judgement on the continued application of minor body status.

5.25. Bodies that take advantage of the minor body exemption will still be designated in the normal way,as they are still required to provide limited information to the Treasury.

2010/11

5.26. The minor bodies list for 2010/11 attached in Appendix 1 is based on 2009/10 data captured in theCG-03 provided in July 2010.

5.27. If, after July 2010, a body finds that its 2010/11 financial results indicate that it should be treated asa minor body in 2010/11, it may contact the Treasury WGA team to request it be added to the minorbody list. However, no alterations to the minor bodies list for 2010/11 will be accepted after 20May 2011.

2011/12

5.28. The minor bodies list for 2011/12 will be based on 2010/11 data captured in the CG-03 provided inJuly this year. Bodies that believe they will qualify for minor body status in 2011/12 shouldcomplete the CG-03 Confirmation of Minor Body Status form due in July 2011. The informationon the CG-03 form will be used in calculating the bodys entitlement to minor body status in2011/12. Failure to submit by the deadline may affect their minor body status for 2011/12.

Minor Bodies: Actions Required

5.29. For 2010/11, bodies should review the minor bodies list and raise any queries with the TreasuryWGA team. Alterations to this list will be accepted only up to 20 May 2011.

5.30. For 2011/12, bodies believing they should qualify for minor body status should submit the CG-03Confirmation of Minor Body Status form to the Treasury WGA team([email protected]), and send a copy to their sub-consolidating departmentsConsolidation Manager, by 22 July 2011.

5.31. Bodies in Scotland, Wales and Northern Ireland should in the first instance consult the appropriatedevolved administration contacts.

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Chapter 6 WGA 2010/11: whats new

6.1. Information included in this chapter: changes to the 2010/11 the WGA process and its components.6.2. All the components of 2010/11 WGA process are broadly the same as in previous years, but there

have been some revisions and improvements made to:

WGA process

WGA Guidance

WGA Forms

SCOAs, match relationships and CPIDs

C-Pack

WGA process

6.3. The WGA process for 2010/11 follows last years process, other than a few small changes.1) The agreement process will need more documentation, particularly where there are significant

differences in amounts recorded by two WGA bodies. This is explained in Chapter 3 and 9.

2) There is a requirement to complete a checklist identifying trouble spots and areas where thereare often errors when completing the C-Pack. This is provided in Chapter 3.

3) The management review should occur before creating the upload files from the C-Pack, so thatif any errors are identified, they can be changed in the C-Pack before creating the upload filesfor the auditors. To enable a full management review to occur at this point, the C-Pack nowallows a trial balance to be generated from the C-Pack, after validation of the data and beforegeneration of the upload files, which can be reviewed. This part of the WGA process is capturedin stage 3 of the WGA process detailed in Chapter 3.

4) The lottery grant process and the journal templates have changed to allow more SCOAs to beused and to address feedback from previous years. This is outlined in Chapter 12.5) The auditors have introduced gateways tests which must be satisfied before they start their

audit of WGA submissions. These are explained in Chapter 3, under stage 5 of the WGA processAudit of the C-Pack.

WGA Guidance

6.4. This Guidance has been revised in response to feedback from WGA preparers and auditors and toaddress queries and issues that arose in the previous year.

1) It should be more user friendly and provide more clarification in areas of uncertainty.2) There is more focus on areas where there have been common errors, and it now includes a

checklist for Trouble Spots (on page 21).

3) There is a new chapter specifically for public corporations.4) The lottery grant journal templates have been revised.

WGA Forms

6.5. The CG-01 Agreement of balances form has been updated and now allows lottery grant recipientsand distributors to use it to agree cash amounts. It includes more requirements for supportingpapers.

6.6. The CG-02 Notification of Completion of the WGA Agreement Process now includes an Annex forcentral government departments to record balances with local authorities. The form should also be

accompanied with CG-01 supporting papers where there are significant differences.

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6.7. The CG-04 Management review checklist has been revised, and it is now clearer as to who shouldsign it, and when. Note that there will be more emphasis placed on, and a more robust review of,the management review checklists. Given its importance, it has been separated out into a specificstage of the WGA process (stage 3 of the WGA process detailed in Chapter 3). The C-Pack has beenamended to allow a trial balance to be generated specifically for the management review. Also notethe auditors will not begin their audits without a completed management review checklist.

SCOAs, match relationships and CPIDs

6.8. The list of SCOAs have been revised to reflect accounting standards applicable this year and tostreamline the data collection exercise where possible. A clear reconciliation of new and old codes isincluded in the spreadsheet detailing the list of WGA SCOAs for 2010/11 on the Treasury WGAwebsite.

6.9. The match relationships have been revised to check that they are reasonable and to address issuesthat arose last year. The list of 2010/11 match relationships is available on the Treasury WGAwebsite.

6.10. The list of WGA bodies and CPIDs will have changed, as they will every year, to reflect changes inthe WGA boundary as a result of events such as disposals, mergers, acquisitions, machinery ofgovernment changes. Also note the new list of minor bodies for 2010/11 included in Annex 1 of thisGuidance. The list of 2010/11 WGA bodies and their CPIDs is available on the Treasury WGA website.

C-Pack

6.11. Key changes to the C-Pack are highlighted here and further details are provided in Chapter 7 of thisGuidance and in the Instructions for the Completion of the C-Pack available separately on the WGAwebsite at http://www.hm-treasury.gov.uk/wga_guidance_index.htm.

6.12. The key changes and new features you will notice are:1) SCOAs2) Pre-population of opening balances in the C-Pack3)

New accounting tests in the C-Pack

4) New trial balance button5) Joint Ventures and associates6) Non Current Assets Held For Sale7) PFI disclosures8) Financial Instrument disclosures9) Discontinued Operations

6.13. SCOAs: There are new SCOAs in the C-Pack, so C-Pack preparers will need to ensure that theyrecheck the mapping of SCOAs.

6.14. Opening balances: Most opening balances are pre-populated in the C-Pack and cannot beoverwritten. If adjustments are made as a prior period adjustment, an explanation should be given.Opening balances are not pre-populated for notes that were not included in last years C-Pack, suchas Non Current Assets Held For Sale. You will need to use the adjustment columns to provide prioryear data. Please refer to the C-Pack instructions for more detail.

6.15. Accounting tests: These have been revised and expanded to include, for example, a check that thecash flow statement balances.

6.16. New trial balance button: In the Admin tab of the C-Pack, there is a new step (step 6) and button.This step is for the management review to review a trial balance generated from the C-Pack, afterthe data has been validated, and before upload files are generated for the auditors.

6.17.

Joint ventures and associates: The C-Pack now captures this information comprehensively. Furtherdetails of what information to provide are in Chapter 7 of this Guidance and the C-Pack Instructions.

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6.18. Non Current Assets Held For Sale: Information on Non Current Assets Held For Sale is now capturedin the C-Pack, in a new tab called Assoc & NCAHFS. The note contains an opening balance,movements and closing balance. See the C-Pack for detail.

6.19. PFI disclosures: The PFI disclosures reflect the 2010/11 Government Financial Reporting Manual(FReM). In summary, PFI commitments need to be reported by the total payments to which they arecommitted for in each of the periods detailed. This is a change from the 2009-10 FReM when

preparers were required to disclose the commitment for the next twelve months by the period thecommitment was to expire. Essentially the PFI disclosure now explicitly asks for capital, interest andservice cost element of the contract which must be analysed over the various time brackets on acash flow basis.

6.20. Financial Instruments: There financial instruments disclosures have been revised, as a result offeedback we received and issues that arose on consolidation last year. The WGA approach onfinancial instruments disclosures is to require basic information about balances from all bodies, andonly require additional information about risk exposures for balances that are material to WGA.Further details of what information to provide are in Chapter 7 of this Guidance and the C-PackInstructions.

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Chapter 7 WGA 2010/11: the C-Pack

7.1. The essential part of the process for the collection and submission of WGA data is for bodies to fillout a Consolidation Pack or C-Pack. The key output of the pack is two spreadsheets: (1) one

containing resource account data; and (2) one containing counter-party data. This data must thenbe submitted or uploaded into COINS.

7.2. The C-Pack may not necessarily be fully reflective of FReM guidance or a bodys resource accounts,as it captures data from a range of bodies with different accounting frameworks and needs to getinformation for WGA purposes which are compliant with IFRS and the needs of WGA.

7.3. This guidance highlights certain key points regarding the C-Pack and should be read in conjunctionwith the detailed Instructions for the Completion of the C-Pack which is available on the TreasuryWGA website at http://www.hm-treasury.gov.uk/wga_guidance_index.htm.

Critical components

7.4. The critical components to completing the C-Pack areSCOA codes

CPID codes

match relationships

7.5. It is essential that the correct SCOA codes are used such that counter-parties are using SCOA codesin the same match relationship. If counter-parties are using SCOA codes in different matchrelationships, then this will give rise to a mismatch and the transaction or balance will not eliminatewithout further work and adjustments being required. Details of SCOA codes and their matchrelationships, indicated as initiating or receiving, are available on the Treasury WGA website(http://www.hm-treasury.gov.uk/wga_guidance_index.htm).

Areas to focus on

7.6. In past years, there have been areas where the quality and accuracy of data submitted has createddifficulties in preparing the Whole of Governments Accounts that represent a true and fair view.The main areas are:

Mapping SCOAs

Identifying and recording accurately all counter-party transactions and balances

Reporting counter-party transactions using SCOAs in the right match relationships

Cash flow statement

Opening balances.

7.7. C-Pack preparers should also check that they have not committed any of the top three commonSCOA mapping errors:

Programme expenditure - should be properly analysed and allocated to the correct SCOAs(eg salary, costs of goods and services, etc should be allocated to the relevant SCOAs)

Grants should be properly analysed and allocated to the different grant SCOAs(see Chapter 11 for further guidance)

CFERS ensure you comply with the guidance in Chapter 10

7.8. C-Pack preparers should also check that they have not committed any of the common CPID errors:Failing to report balances with expenditure with local authorities, pension schemes withinWGA, and grants appropriately.

Failing to report balances that have been agreed.
http://www.hm-treasury.gov.uk/wga_guidance_index.htmhttp://www.hm-treasury.gov.uk/wga_guidance_index.htmhttp://www.hm-treasury.gov.uk/wga_guidance_index.htmhttp://www.hm-treasury.gov.uk/wga_guidance_index.htm

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Failing to report balances for SCOAs that are expected to have CPID(generally the SCOAs which generate rows in the CPID Input sheet of the C-Pack)

Agency transactions see Chapter 11 for further guidance

investments in government securities for investments of gilts or treasury bills use CPID forthe National Loans Fund (NLF888); for investments of cash deposits use CPID for the DebtManagement Office or DMO (DMA888)

taxation and social security receivables and payables should be coded to IRT813

7.9. Checklist for Trouble Spots:C-Pack preparers should use the Trouble Spot Checklist on page 21, to check all areas that manypreparers have difficulty with.

7.10. There is a risk that, if the quality and accuracy of data submitted in these particular areas is notimproved, the auditors will issue a qualified opinion in respect of these areas in the 2010/11 Wholeof Governments Accounts. Therefore we recommend that preparers focus on these areas and spendmore time to ensure that the data submitted is accurate.

Cash Flow Statement

7.11. The cash flow statement must balance. There is now a fatal validation check, meaning that the C-Pack cannot be validated and uploaded if the cash flow statement does not balance.

Opening balances

7.12. Treasury take a keen interest in Opening Balances and Prior Period Adjustments (PPA) entered bybodies. Bodes are required to provide a justification and explanation for raising PPAs. Validationerrors will arise if this information is not complete.

7.13. Consolidation Managers and Consolidation Officers should review these carefully.Financial Instrument disclosures

7.14. C-Pack preparers need to complete the financial instruments disclosures in line with WGA disclosurerequirements which are in accordance with IFRS (specifically IAS 32, IAS 39 and IFRS 7) and which

must be standardised to record information from all WGA bodies. While bodies should provideinformation that is consistent with their resource accounts, they must ensure that they complete thestandardised format and disclosures required for WGA purposes.

7.15. Definitions and classifications of financial assets and liabilities can be found in these accountingstandards. Financial guarantees are a common form of financial instrument and should be disclosedas such, rather than in provisions or elsewhere.

Risk disclosures

7.16. The disclosure of risk exposures arising from financial instruments is intended to capture materialexposures for the purposes of WGA, and we have tried to simplify the disclosures compared to lastyear.

Credit Risk disclosures

7.17. In the Financial Instruments sheet, in the Credit Risk section, there is table entitled Gross creditexposure by credit rating at year end that requires financial assets to be categorised by their creditrating from external rating agency designation or equivalent at year end. The column Not rated isfor those financial assets that have no rating because, for example, the financial asset relates to acompany in liquidation. If a body has not undertaken the exercise of rating its financial assets for itsstatutory accounts, it may because credit risk is not material so there is no need to complete thistable. If credit risk is material, the body should look at each category of financial asset and considerwhat it would be rated as. For example, if investments or financial guarantees relate to a companyowned by the government, a government rating (AAA) may be appropriate.

Private Finance Initiative (PFI)

7.18.

C-Pack preparers need to complete the private finance initiative (PFI) disclosures in the C-Pack in linewith WGA disclosure requirements which are in accordance with the 2010/11 FReM. In line withparagraph 5.4.59 of the 2010/11 FReM, PFI projects are required to be disclosed as follows: for each

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5-year banding disclose the total payments (i.e. not an annual payment) for contracts expiringwithin that period. Essentially the PFI disclosure now explicitly asks for capital, interest and servicecost element of the contract which must be analysed over the various time brackets on a cash flowbasis.

Joint Ventures and Associates

7.19. The C-pack is governed by the disclosure of IAS 28 and IAS31 and follow the FReM: Joint venturesand associates are equity accounted for, meaning that only a bodys proportion of its holding isshown in the accounts. The initial investment is recorded as an asset and is then adjusted to anysubsequent movement on post acquisition reserves.

7.20. We would expect the following double entries and SCOAs to be used:1) Initial recording of investment:

DR Asset to SCOA 17012000 (JV acquisition) or 17011400 (Associate acquisition)

CR Bank

2) Subsequent recording of profit:DR Asset to SCOA 17018000 (JV post tax result) or 17011200 (Associate post tax result)

CR Profit to SCOA 51433400 (JV or Associate share of results)

3) Subsequent recording of loss:DR Loss to SCOA 51433400 (JV or Associate share of results)

CR Asset to SCOA 17018000 (JV post tax result) or 17011200 (Associate post tax result)

4) Other scenarios: Dividends received from the associate of joint venture are treated as areduction in the asset so the double entry is:

DR Bank

CR Dividends to SCOA 1709000 (JV) or 1701130 (Associate)

7.21.

Acquisition and disposals are self explanatory, these increase or decrease the investments made.7.22. Transfers should be used when joint ventures and associates may be re-classified and or the

investments are transferred to another government entity.

7.23. Additional disclosures are required to record the total assets, liabilities and profit and loss of thejoint venture and associate. Please provide this information in the relevant boxes.

Other key points to note

7.24. Other key points to note when completing the C-Pack:Decimals should not be used unless specifically required. If decimals are used, this mayprevent the trial balance from balancing and therefore the upload files from being able tobe uploaded into COINS.

Income and liabilities should be input as negative amounts, and expenditure and assetsshould be input as positive amounts. If this is not done, the C-Pack will not be completedcorrectly and validation checks and/or accounting tests will be failed.

Validation checks and accounting tests must be resolved in order to complete the packs.

IT issues

7.25. Over the years, IT systems have become more and more secure. This can mean that the C-Pack maynot get through the firewalls of the internet due to features in the C-Pack such as macros andpassword protection. Please ensure that you have permission to receive and send macro enabledattachments via email with your IT department.

7.26. Linked with the above, many default settings on security related matters are set to high. However,to run the C-Pack, security settings of macros must be set to low or medium. Again, you may need

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to get permission from your IT department to do this. Please refer to chapter 4 in the C-Packinstructions for more detail.

Queries

7.27. If you have any queries regarding the completion of the C-Pack, you can:refer to the Instructions for the Completion of the C-Pack on the WGA website

http://www.hm-treasury.gov.uk/wga_guidance_index.htm;check Chapter 15 of this Guidance for FAQ ;

check the FAQ on the WGA website which will more complete and up-to-date; and

email the Treasury WGA team on wga.team@ hmtreasury.gsi.gov.uk.

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Chapter 8 WGA 2010/11: the forms

8.1. Information included in this chapter:CG-01 Agreement of Balances

CG-02 Notification of Completion of the WGA Agreement Process

CG-03 Confirmation of Minor Body Status

CG-04 Management Review Checklist

CG-05 Notification of Audit Completion

8.2. These forms are all available on the Treasury WGA website:http://www.hm-treasury.gov.uk/wga_guidance_index.htm.

CG-01 Agreement of Balances form

8.3. This form is to document the agreement of transaction streams and balances between WGA bodies.Forms are available as an Excel workbook on the Treasury WGA website. The form includes further

detailed instructions on how to complete it.

8.4. The purpose of the form is to help the agreement process and to provide evidence that balancesand transaction streams have been agreed.

8.5. Consolidation Managers should ensure that the form is completed in respect of all balances andtransactions above 5 million with other WGA bodies, as set out in Chapter 9 of this guidance.

8.6. Lottery distributors and recipients should use this form to agree cash amounts paid and received inrelation to lottery grants, as set out in Chapter 12 of this guidance.

8.7. Where there are significant differences (more than 200,000) between amounts recorded by twobodies:

The CG-01 should include details of the differences, including supporting papers.

The supporting papers should include detailed explanations and further details that may berelevant, such as extracts from the accounts and nominal amounts of contracts.

A copy of the CG-01 and supporting papers should be attached to CG-02 Notification ofCompletion of the WGA Agreement Process.

8.8. Consolidation Managers should keep completed forms as part of their working papers. Thedeadline for completion is 3 June 2011, but the process should be started as soon as possible.

8.9. Further guidance is in Chapter 9 of this guidance.CG-02 Notification of Completion of the WGA Agreement Process

8.10. This form is to confirm that transaction streams and balances have been agreed with other WGAbodes and to detail where there have been any differences in the amounts to be agreed.

8.11. Attached to the CG-02 should be:1) A copy of the CG-01 and supporting papers where there are significant differences (more

than 200,000) between amounts recorded by two bodies

2) Annex Departments balances with Local Authorities.8.12. The information in the Annex should be completed by central government departments to record

balances with local authorities. This information will be used for the WGA eliminations.

8.13. All bodies (except NDPBs) should send a hard copy of the form and supporting papers to theTreasury WGA Team. NDPBs should send a copy to their sub-consolidating departments.

8.14. The deadline for completion is 10 June 2011.

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8.15. Further guidance is in Chapter 9 of this guidance.CG-03 Confirmation of Minor Body Status form

8.16. This form is to confirm minor body status for 2010/11.8.17. Consolidation Managers of minor bodies should complete the form.8.18. Completed forms should be sent to the Treasury WGA Team [email protected]

and copied to sub-consolidating departments.

8.19. The deadline for completion is: 22 July 2011.8.20. Further guidance is in Chapter 5 of this guidance.CG-04 Management Review Checklist

8.21. This form is to document managements review of the WGA submission. 8.22. The Management Review Checklist provides assurance proper procedures in place for providing

WGA data in line with their accounts and for providing the quality of WGA data is of the standardrequired for a true and fair audit opinion. This checklist informs and records the managementprocesses of preparation, review and validation of WGA submissions. Evidence of these processeshaving been undertaken should be maintained so that there is a clear management trail.

8.23. Part 1 - should be completed by central government bodies consolidated within WGA, includingdepartments (and sub-consolidating departments in respect of the departmental submission),NDPBs, PCs, pension schemes and managed funds.Part 1b has additional questions only for public corporations.

8.24. Part 2 should be completed by sub-consolidators as it covers the sub-consolidation process8.25. Timing: The checklist must be completed after the validation of WGA data in the WGA Consolidation

Pack (C-Pack) and before generating upload files of WGA data from the C-Pack. The deadlines forcompletion are prior to submission of the WGA data to the auditor, i.e. by 29 July 2011, and by 9

September 2011 for sub-consolidations.8.26. Consolidation Managers: should initial and date each item on a hard copy of Part 1 of the checklist

once content that the item has been addressed. This should be done after the validation of WGAdata in the WGA Consolidation Pack (C-Pack) and before generating upload files of WGA data fromthe C-Pack.

8.27. Consolidation Officers: should initial and date this checklist once his/her review has been completed.This can be done after the WGA data has been audited when they sign off the WGA financialstatements, in the same way an Accounting Officer would sign the Resource Accounts.

8.28. All bodies (except NDPBs) should send a hard copy of the management review checklist to theTreasury WGA Team. NDPBs should send completed forms to their sub-consolidating departments.

8.29. Audit: Auditors will expect to see the signed management review checklist on commencement oftheir audit.

8.30. Further guidance is in Chapter 3 of this guidance.CG05 Notification of Audit Completion form

8.31. This form is to confirm that the WGA submissions and sub-consolidations have been audited andany required audit adjustments have been made. Details of any agreed audit adjustments thatbodies are not able to upload into the ATM module of the COINS system (because, for example, theydo not have access to the ATM module) should be attached to the form. Also attach copy of signedand audit-certified C-Pack Statement of Financial Position with the audit electronic signature.

8.32. The final C-Pack Statement of Financial Position with the audit electronic signature should beattached to the form.

8.33. Consolidation Managers should complete the form.

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8.34. All bodies (except NDPBs) should send completed forms to the Treasury WGA Team [email protected]. NDPBs should send completed forms to their sub-consolidatingdepartments.

8.35. The deadlines for completion are 26 August 2011, and 30 September 2011 for sub-consolidations.8.36. Further guidance is in Chapter 3 of this guidance.

Sub-consolidators

8.37. In summary, sub-consolidating departments should expect to received copies of CG-02 (andsupporting papers), CG-04 and CG-05 forms from NDPBs within their group.
mailto:[email protected]:[email protected]:[email protected]

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Chapter 9 Transactions between WGA bodies

9.1. Information included in this chapter on transactions between WGA bodies:1. Key components2. Actions required now3. Common CPID errors4. Timetable - post-recess resource accounts5. The forms to be completed CG-01 Balance of Agreement form and CG-02 Notification of

Completion of the WGA Agreement Process form

6. Thresholds for reporting and agreeing balances and transactions, executive agencies7. Identifying WGA bodies (CPID codes) executive agencies, when to use a parent CPID, what

CPID to use when a body has changed, and what CPID code to use for taxes

8. Identifying transactions and balances between WGA bodies - VAT, agency transactions,reporting on a gross or net basis, recharged costs,

9. The agreement process - with whom and what to agree, resolution of significant differences10.Resolution of mismatches - the matches report11.Agreement process for pensions and pension schemes

9.2. This guidance sets out essential ground rules that must be followed, to ensure that WGA bodiesadopt a common approach for reporting and agreeing balances and transactions with each other.

9.3. At the end of this chapter is a flowchart which summarises the Agreement of Balances process.

9.4. The basic principle is that WGA bodies should identify both transactions and balances with otherWGA bodies using a Counter-Party Identifier (CPID).

9.5. The elimination process works on a number of match relationships and is automated in the HMTreasury Combined On line System (COINS). Once two reported transactions or balances match eachother, the COINS elimination module will automatically reverse the entries to eliminate them.

9.6. It is essential that the correct SCOA codes are used such that both counter-parties are using SCOAcodes in the same match relationship. If counter-parties are using SCOA codes in different matchrelationships, then this will give rise to a mismatch and the transaction or balance will not eliminatewithout further work and adjustments being required.

Transactions and balances between Whole of Government Accountsbodies must be eliminated so the accounts give a true and fair view.

The importance of recording complete and accurate counter-partyinformation cannot be overstressed, as it is the only way in whichtransactions and balances between WGA bodies can be identified andeliminated.

1. The key components

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