HC Deb 02 November 1993 vol 231 c85W
Mr. Nicholls

To ask the Chairman of the Public Accounts Commission on what basis the National Audit Office hypothesises its charges for work carried out on behalf of Government Departments and agencies; if, for the purposes of market testing, the NAO calculates its charges on a full cost basis, as defined by the Treasury; and if he will make a statement.

Sir Peter Hordern

In line with the National Audit Act 1983, the National Audit Office currently has ministerial consent to charge for the audit of trading funds, for the audit of accounts which are trading type activities, and for all audits undertaken by agreement. The National Audit Office calculates its fees for such work on a full cost basis in line with the Treasury fees and charges guide. The National Audit Office currently contracts out some 8 per cent. of its financial audits and also assumes a full cost basis in line with the Treasury guidance when comparing its internal costs with those of the private sector on these accounts.

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