Select committee: Housing, Communities and Local Government Committee
Recommendation 11
First Report - Financial Reporting and Audit in Local Authorities
Published 24 Nov 2023
Paragraph 57
Addressed to Ministry of Housing, Communities and Local Government
Housing, Communities and Local Government Committee Financial Reporting and Audit in Local Authorities All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Recommendation (the committee's words)
Through coordination with the Chartered Institute of Public Finance and Accountancy, the Department for Levelling Up, Housing and Communities must make the Accounting Code freely available to all possible users of local authority accounts before the next accounts production cycle for the year ended 31 March 2024. Once this has been achieved, the Department should set out its assessment of what else it can do to encourage the use of the Accounting Code as a central, authoritative, and accessible document that meets the needs of all possible users of local authority accounts.
From: Housing, Communities and Local Government Committee, First Report - Financial Reporting and Audit in Local Authorities (HC 59), paragraph 57, 24 November 2023
Government response
The government responded to the whole report on 5 February 2024 (deadline 24 January 2024).
Summary written by Accountability Index from the government's response. It is not the government's own words.The government welcomes the Committee's report and gives a differentiated response across its 14 recommendations, agreeing with or committing to consider several while stating that clearing the audit backlog is its immediate priority and that it does not support one.
- On backlog, the government says its proposals include an initial backstop date of 30 September 2024 for all outstanding local audits up to and including 2022-23, "subject to consultation in early February".
- On a new local audit body (Recommendation 6), the government's view is that "a new arm’s length body is not necessary" and a system leader should instead be appointed from within the current system.
- On value for money (Recommendation 12), the government states "We do not support this recommendation", saying auditors are "not currently equipped" to comment on specific services, projects or programmes.
- On a standardised statement of service information and costs (Recommendation 10), it remains "committed to the prospect" but says introducing it now would add a requirement while clearing the backlog is the priority.