Source · Select Committees · Housing, Communities and Local Government Committee
Recommendation 21
21
Rejected
The Department must ensure that the local audit system leader is the primary point of...
Recommendation
The Department must ensure that the local audit system leader is the primary point of contact to which local auditors can escalate matters of concern that they find during an audit of a local authority. Additionally, the local audit system leader must be responsible for collecting and considering audit findings across the sector to identify and coordinate responses to systemic or widespread issues that the auditors have found. Furthermore, the Department must clearly set out which body has these responsibilities until the audit system leader is established in legislation. (Paragraph 94) Producing local authority accounts
Government Response Summary
The government states it is not envisaged that the local audit system leader will be the primary point of contact for auditors' escalations or coordinate responses to systemic issues. It notes existing reporting mechanisms to the Secretary of State and DLUHC, and that the FRC as shadow system leader already reports annually on overall trends and patterns.
Government Response
Rejected
HM Government
Rejected
Where auditors issue a public interest report (PIR) or statutory recommendations, such as issuing a Section 24 (S24) notice, they are required to send a copy to the Secretary of State for Levelling Up, Housing and Communities. Weaknesses identified by auditors in their work on local government bodies’ value for money arrangements are also routinely considered by DLUHC as the Department responsible for stewardship of local government (as issues concerning police or fire authorities would be considered by the Home Office). The local audit system leadership function has been established to ensure better integrated working across the system and to ensure a coordinated and coherent response to issues arising; it is not envisaged that the system leader should perform duties set out in the individual codes or accountability mechanisms. The Department has an ongoing interest in being alerted to and understanding the issues raised by auditors in PIRs and S24 notices, but we can explore whether there should be a similar mechanism put in place for ensuring the system leader is kept similarly updated. On the question of reporting, the MoU setting out the FRC’s responsibilities as shadow system leader already includes a responsibility for the system leader to “lead work to report annually, in the public sphere, on local audit: on timeliness, on the findings of local audit, overall trends/patterns emerging from local audits and the state of the local audit market”. Access to timely and reliable data from system partners will be vital for the system leader to develop a whole system view of risks and priorities and to reflect these in its reporting on the system.