Financial Reporting Advisory Board (FRAB)

The primary purpose of Financial Reporting Advisory Board is to ensure that the Government follows best practices, standards and principles while carrying out financial reporting.

Role of the Financial Reporting Advisory Board

The Financial Reporting Advisory Board, or FRAB, is entrusted with the task of ensuring that the government financial reporting meets the highest set standards of financial reporting and carry out its intended task to conform to Generally Accepted Accounting Practice (GAAP) as far as possible.

The board was instituted in 1996 in aftermath of the publication of White Paper ‘Better Accounting for Taxpayer’s Money’ in 1995. The government following the publication of the white paper decided to set up the Financial Reporting Advisory Board. The board seeks to benefit from the expertise and knowledge of extensive range of people involved in accountancy professions. The members or representatives of the board are accountants drawn from government agencies, public and private sectors, academia, etc.

The Financial Reporting Advisory Board got more power and was recognized more formally when Government Resources and Accounts Act in 2000 proclaimed that the Treasury needs to consult a group of experts so that their advice and suggestions help maintain the highest set standards of financial reporting and appropriation. The Financial Reporting Advisory Board meets regularly to decide if any policies and practices needs changes or modifications to bring them in tune with changing times. As and when the changes are agreed upon, the duty of publishing it falls on the shoulders of the Treasury. The Government Financial Reporting Manual (FReM) is the applicable document for this purpose. The Financial Reporting Advisory Board is also entrusted with the task of publishing a report of all its activities carried out throughout the year, which then is laid before the parliament.

The Role of the FRAB Member

• Each and every member of the Financial Reporting Advisory Board (FRAB) is expected to make full commitment towards ensuring that the Board functions in a highly effective and efficient manner. They are drawn upon to contribute towards achieving the goals and the objectives of the Board in the following ways:
• The members of the Financial Reporting Advisory Board (FRAB) are expected to meet at least thrice a year to ensure that the Board conducts its operation smoothly and efficiently.
• The Board members are expected to draw in their valuable skills, expertise and knowledge to ensure that Board takes upon matter of importance with respect to relevant financial reporting practice and principle and make appropriate suggestions to the relevant authorities.
• Display requisite objectivity and principles while deliberating upon, and subsequently making suggestions related to issues and points governing relevant accounting principles
• The members of the Board are also expected to actively participate and express their opinions in a lucid manner on the issues taken up for discussion or debate by the Financial Reporting Advisory Board (FRAB). The views and opinions expressed by the Board members must be supported by rationality, objectivity and reasoned analysis.
• The members of the Financial Reporting Advisory Board (FRAB) are also expected to bring it out in the open any personal conflicts of interest related to issues considered by the Board.
• The members of FRAB in all time and circumstances must comply fully with the code of conduct laid down by the Board.

Relevant qualification and criteria for the FRAB members

Each member of the Board must display or possess below mentioned essential qualities and qualifications:

1. Relevant knowledge, expertise and reporting experience in accounting or in the field of public financial management. The person possessing the above mentioned skills must have worked at a senior executive level.
2. The member of the Board must be a qualified accountant (CCAB or equivalent) with robust expertise in International Financial Reporting
3. The member of the Board must possess strong communication and presentation skills with practical knowledge and experience in the relevant field.
4. The member of FRAB must possess expert knowledge and expertise in order to contribute effectively to the FRAB. The member also must possess the ability to represent the Financial Reporting Advisory Board FRAB in an impactful manner while dealing with an extensive range of public and private stakeholders.

If you think you are qualified to serve as the member of the Board and if there is a vacancy and you are interested in taking up the role, you can send a copy of your CV and a covering letter outlining what interests you about the post and how you meet the relevant person specification requirements to the Board at ian.bulmer@hmtreasury.gsi.gov.uk.

Membership of the Financial Reporting Advisory Board

• Ian Mackintosh

• Anthony Appleton, Financial Reporting Council
• Andrew Buchanan, BDO
• Richard Barker, Oxford University
• Andrea Pryde, IFRS

1. Iain King, Department for Education
2. Pam Beadman, Department for the Environment and Rural Affairs as NDPB representative
3. Ian Webber, Intellectual Property Office
4. Bob Richards, Office for National Statistics
5. Gareth Caller, Ministry of Housing, Communities and Local Government
6. Joseph McLachlan, CIPFA nominated local preparer

• David Aldous, National Audit Office
• Fiona Kordiak, Audit Scotland
• Karl Havers, Independent Auditor

1. Ian Bulmer, HM Treasury
2. Chris Young, Department of Health and Social Care
3. Ian Ratcliffe, NHS Improvement
4. Joanne McBurney, Department of Finance, Northern Ireland Executive
5. Aileen Wright, Scottish Government
6. Gawain Evans, Welsh Government
7. Sarah Sheen, CIPFA

• Craig McKinlay MP, Parliamentary Observer
• Larry Honeysett, Parliamentary Scrutiny Unit

About the author

Sumit Agarwal
Sumit Agarwal (ACMA ACA India), the Managing partner of dns accountants is a highly respected accountant with expertise in helping owner-managed businesses.