Source · Select Committees · Housing, Communities and Local Government Committee
Recommendation 58
58
Deferred
Require local auditors' opinions to assess actual value for money and provide early warnings
Recommendation
The Ministry must act on other recommendations from the predecessor Committee’s report on Financial Reporting and Audit in Local Authorities that have not yet been addressed. Specifically, the Ministry should work with the organisation that prepares the Audit Code (currently the National Audit Office, transferring to the Local Audit Office when it is set up) to ensure that local auditors’ opinions over value for money include an actual assessment of value for money achieved (not merely whether appropriate arrangements exist), to assess the benefits of decoupling value for money work from financial audit work, and to encourage local auditors to make more proactive use of existing powers to raise early warnings. (Recommendation, Paragraph 217) 82
Government Response Summary
The government commits to a post-implementation review of the Code of Audit Practice by the end of 2027, which will consider expanding VFM assessments, and notes that the LAO's responsibilities include championing auditors' early warning powers.
Government Response
Deferred
HM Government
Deferred
The Government published a strategy in December 2024 which includes the commitment to undertake a post-implementation review of the Code of Audit Practice by the end of 2027. This review will consider whether auditors should expand from VFM arrangements to assessment of VFM achievement. The LAO’s strategic responsibilities include championing auditors’ statutory reporting powers to strengthen the sector’s early warning.