10
Conclusion
Sixtieth Report - Timeliness of local a…
Acknowledged
Local government audit delays are also creating problems in other parts of government. For example, delays to the completion of 2020–21 local audits are adding to uncertainty around progress with the Whole of Government Accounts, which will be published more than 24 months after the financial year end.25 We note …
Read more
Local government audit delays are also creating problems in other parts of government. For example, delays to the completion of 2020–21 local audits are adding to uncertainty around progress with the Whole of Government Accounts, which will be published more than 24 months after the financial year end.25 We note the Department’s and HM Treasury’s action to raise the financial threshold above which authorities are required to provide audited WGA returns.26 We have also seen delays to assurance on Local Government Pension Scheme accounts contribute to delays of four to five months on certifying central government department accounts, including the Ministry of Justice and the Department for Digital, Culture, Media & Sport.27 The Department told us it was keen to explore options available to close the audit of central government accounts sooner where the issue holding up finalisation is the absence of local auditor assurances on the pension valuations feeding into them. The C&AG agreed that a limited audit opinion 18 Qq 8, 11, 16 ; C&AG’s Report, Para 3.20 19 Q 22; TAR0008 p.2 20 Q 69 21 TAR0014 para 7.3, TAR0008, p.2 22 Q 40 23 Q 65 24 Qq 19, 20 25 Committee of Public Accounts, Whole of Government Accounts 2019–20, Twentieth Report of Session 2022–23, HC 31, October 2022 26 C&AG’s Report, para 2.15 27 C&AG’s Report, para 2.11 Timeliness of local auditor reporting 11 could help avoid unnecessary delays and we said we would not be concerned with such accounts qualifications if they were agreed in conjunction with the NAO and remained exceptional rather than routine.28
Show less
Government response AI summary
The government agrees with the committee's observation on audit delays impacting other accounts. It outlines ongoing urgent cross-system work, including letters to local authority executives and DLUHC's monitoring, to address the overall local audit backlog.
Read full response →
HM Treasury
11
Conclusion
Sixtieth Report - Timeliness of local a…
Acknowledged
We also asked the FRC about the risks local audit delays cause to NHS accounts. The FRC emphasised the challenges the health sector faces due to structural changes in the last year.29 This will be reflected in the NHS requiring audits of the three months Clinical Commissioning Groups were in …
Read more
We also asked the FRC about the risks local audit delays cause to NHS accounts. The FRC emphasised the challenges the health sector faces due to structural changes in the last year.29 This will be reflected in the NHS requiring audits of the three months Clinical Commissioning Groups were in place up to June 2022, and of the nine months of the Integrated Care Boards that replaced them for the rest of 2022–23.30 The FRC emphasised the interdependencies where the same pool of auditors works across both the health and local government sectors, a coordination risk also highlighted by local audit providers themselves.31 The FRC told us it plans to undertake a wider review of the local audit system, including the NHS, as an immediate priority.32 It argued that a more granular understanding will enable it to assess the best course of action to address issues affecting timeliness, without having a detrimental effect on other sectors.33 Incentives for timely audit
Show less
Government response AI summary
The government agrees with the committee's sentiment regarding local audit delays impacting NHS accounts and describes ongoing cross-system work, including letters to local authority executives and DLUHC's monitoring, to address the overall audit backlog and ensure timely financial reporting.
Read full response →
HM Treasury
28
Conclusion
Sixtieth Report - Timeliness of local a…
Acknowledged
We have previously stated our support for the Redmond Review’s shorter-term proposal for local authorities to publish a standardised statement alongside their accounts to improve transparency to the public.89 The Department told us that work was underway to develop simplified statements for publication alongside local government accounts, but in December …
Read more
We have previously stated our support for the Redmond Review’s shorter-term proposal for local authorities to publish a standardised statement alongside their accounts to improve transparency to the public.89 The Department told us that work was underway to develop simplified statements for publication alongside local government accounts, but in December 2021 the Department announced it would delay the implementation of these statements while pressures on audit timeliness remained so severe.90 89 Public Accounts Committee, Eleventh Report of Session 2021–22, Local auditor reporting on local government in England, HC 171, para 12 90 C&AG’s Report, para 3.19 18 Timeliness of local auditor reporting
Show less
Government response AI summary
The government states its response builds on existing commitments to the Redmond Review and its 2021 package of measures to improve local audit delays, without offering new specific actions for the noted delay.
Read full response →
HM Treasury