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In an environment of new and emerging financial pressures, and heightened expectations from parliament and the public, public sector organisations continue to demonstrate real commitment to producing high quality, timely and transparent annual reports and accounts. In his annual speech to parliament, head of the NAO Gareth Davies spoke about the importance of our role in supporting accountability and public trust and highlighted organisations which produce clear, concise and timely reporting with their audience firmly in mind.
Annual reports are a key tool enabling parliament, the public and other stakeholders to hold public sector organisations to account. By equipping readers with clear, balanced information, public sector organisations can build trust in how they are governed and how public money is spent.
These documents are a visible testament to strong financial management and stewardship. When public trust is low, they play a crucial role in building confidence in the management of public funds.
Organisations are currently preparing their 2025-26 annual reports and accounts, so we want to reiterate the vital role these documents play in maintaining public trust and highlight our recently published Good practice in annual reporting guide.
Our good practice guide
Our good practice guide showcases examples from a variety of public sector bodies. It spotlights good practice principles that we believe are the foundation of high-quality and timely annual reporting:
Supporting accountability. Annual reports equip readers with information they can use to hold organisations to account and so can help build trust with stakeholders.
Transparent. By providing a candid view of performance, including successes and challenges, organisations can help foster confidence among stakeholders and promote informed decision-making.
Accessible. Annual reports need to be accessible to a wide audience. Clear language, concise explanations, and user-friendly formats enhance accessibility and encourage engagement.
Understandable. A well-structured report ensures that readers can easily grasp the organisation’s performance, goals, and impact. Clarity in conveying complex information is essential – whether in words or graphics.
Recognising excellence in reporting
We’ve drawn the examples in our guide from a large range of annual reports for 2024-25, many of which were shortlisted for the Building Trust Awards which recognise trust and transparency in annual reporting.
PwC has run these awards for over 20 years and the NAO co-sponsors the award for reporting in the public sector. Recent winners have included the Met Office, the UK Atomic Energy Authority and Great Ormond Street Hospital.
In addition to our guide, we also co-host an annual workshop with PwC. We were joined by around 50 public sector organisations and the workshop included a presentation from this year’s public sector winner, The Met Office. There were plenty of opportunities to network with colleagues to discuss good practice and its application across the full range of bodies represented. We also heard from the chair of the Public Accounts Committee, Sir Geoffrey Clifton-Brown, who gave valuable insight into how parliament uses annual reports and accounts to hold the government to account.
Many organisations that have been shortlisted or recognised in previous years have taken part in these workshops, often drawing on the feedback to strengthen their reporting further.
Looking ahead
As you start preparing your 2025–26 annual reports and accounts, we want the guide to provide helpful examples of clear, concise and innovative reporting.
We know that local government isn’t represented in our guide because most bodies haven’t been able to publish in time. As more local authority annual reports and accounts are published soon after year end, we want to engage with this sector to recognise and encourage good practice.
High-quality and timely reporting remains a cornerstone of maintaining public trust, and we remain steadfast in our commitment to supporting organisations to improve reporting even further.
Find the good practice guide on annual reporting on the NAO website.
