23 October 2009
Government departments need to keep less money in private banks and use the Exchequer as their main banking provider, the National Audit Office has said.
In a report on Whitehall cash management published on October 17, the NAO said departments held £4bn in commercial accounts as of the end of March 2008.
NAO chief Amyas Morse said a further £28m of government money could have been saved if the cash had been held by the Exchequer.
‘Forecasts of cash flows should be improved. Where organisations do need to use commercial bank accounts, they should use shared knowledge to negotiate arrangements which give the best possible deal for the taxpayer,’ he added.
Government departments need to keep less money in private banks and use the Exchequer as their main banking provider, the National Audit Office has said.
In a report on Whitehall cash management published on October 17, the NAO said departments held £4bn in commercial accounts as of the end of March 2008.
NAO chief Amyas Morse said a further £28m of government money could have been saved if the cash had been held by the Exchequer.
‘Forecasts of cash flows should be improved. Where organisations do need to use commercial bank accounts, they should use shared knowledge to negotiate arrangements which give the best possible deal for the taxpayer,’ he added.
