Spending watchdog issues guide on corporate finance in public sector

The National Audit Office has issued a good practice guide on the use of corporate finance in the public sector.

The spending watchdog said: “Corporate finance is a complex and specialist topic. We have examined corporate finance transactions and the organisations performing these for more than 35 years. There are many factors senior leaders must consider to ensure public bodies manage the risks and benefits to taxpayers when using corporate finance techniques.”

It noted that the Government and the public sector had used corporate finance techniques to support and implement a range of policy objectives and interventions, and that this was “particularly true of the government response to the global financial crisis and the COVID-19 pandemic”.

The guide uses insights from the NAO’s stakeholder engagement and draws on its internal expertise from years of auditing government interventions and corporate finance activities. It covers 14 themes over three core areas:

• Principles and concepts
• Organisations and functions
• Transactions

The interactive guide also contains insights from 139 NAO reports and sets out key questions for senior decision-makers to consider when overseeing corporate finance activities.

“It will also be of interest to professionals supporting the government to deliver a range of transactions, including commercial investments, loans and guarantees,” the NAO said.