Commentary on Sections and Schedules The Sovereign Grant Section 2: Accounts of the Royal Household
34.This section prescribes arrangements for the accounts and audit of the Royal Household. As with other areas of public expenditure, the Treasury defines how the Household’s resource accounts showing use of Sovereign Grant should be drawn up. The Comptroller and Auditor General (who is the government’s external auditor) will audit them.
35.Subsections (1) and (2) provide that the Keeper of the Privy Purse (The Queen’s Treasurer and the Royal Household’s Accounting Officer) must:
	keep proper accounting records of the Royal Household’s activities in support of Her Majesty’s official duties;
	prepare resource accounts; and
	submit them to the Comptroller and Auditor General.
36.Subsection (3) specifies the basic content of the resource accounts while subsection (4) gives the Treasury power to make directions about their form, including additional material. The Treasury’s current intention is that the accounts direction will be similar to accounts directions used elsewhere in central government, with some contextual adjustments.
37.Subsection (5) instructs the Comptroller and Auditor General to audit the accounts and submit them and a report on the accounts to the Treasury.
38.Under subsection (6), the Treasury must then lay the auditor’s report and the accounts before Parliament and submit a copy to the Royal Trustees.
39.Subsection (7) defines the concept of the Royal Household’s “net relevant resources used” which the resource accounts are to record. It should be read with section 13(9) which limits the accounts to use of resources by the Royal Household in support of the Sovereign’s official duties. The concept nets off associated income such as fees and rents. The “net relevant resources used” would include resources derived from the Duchy of Cornwall when they are at the disposal of the Sovereign (see section 9) . Spending supported from the Privy Purse that is used for official duties would not be included because those are the Queen’s personal resources.
40.Subsection (8) provides the Comptroller and Auditor General with powers to scrutinise the Royal Household accounts and report on the economy, efficiency and value for money achieved in use of public funds.