Source · Select Committees · Housing, Communities and Local Government Committee
Recommendation 25
25
Deferred
Paragraph: 116
The Government previously accepted the Redmond Review’s recommendations to introduce a standardised statement of service...
Conclusion
The Government previously accepted the Redmond Review’s recommendations to introduce a standardised statement of service information and costs for local authority accounts. Implementing these recommendations would constitute an important step to improving the clarity and content of local authority accounts. 38 Financial Reporting and Audit in Local Authorities However, the Government has delayed implementation of the new statement until the audit backlog is cleared. While we appreciate the Government’s decision to focus on addressing the backlog, it remains important in the longer term to make these necessary improvements to the local authority accounts themselves. We are concerned that the delays with the implementation of the Redmond Review’s recommendations will continue unless the Government takes immediate action.
Government Response Summary
The government remains committed to introducing a standardised statement but explains that implementation is delayed until the audit backlog is cleared to avoid additional burdens on auditors, while CIPFA develops interim performance reporting.
Paragraph Reference:
116
Government Response
Deferred
HM Government
Deferred
We remain committed to the prospect of a standardised statement. However, introducing this now would add a new requirement onto auditors and accounts preparers at a time when the immediate priority must remain clearing the backlog before we can then turn to issues of long-term reform. In the meantime, CIPFA is keen to ensure that the focus should be on developing better performance reporting so that the accounts and statements that accompany them are able to convey the key messages to the user. Through its updated strategic workplan, CIPFA LASAAC will focus on an overview of performance and summary financial information note. Following this work CIPFA LASAAC will then make any final decisions on any proposed changes to the Code, including determining the best mechanisms to report performance and summary financial information. This could become the precursor to the standardised statement of information and costs.