Source · Select Committees · Public Accounts Committee
Recommendation 9
9
We pressed the Department on when we would see improvements in the timeliness of local...
Conclusion
We pressed the Department on when we would see improvements in the timeliness of local authorities publishing their audited accounts. The Department felt that it would not be possible to bring timeliness back on track in one audit cycle in 2021, given the impact of Covid-19. It explained that it had adjusted the deadline for local authorities to publish their accounts to 30 September for 2021 and 2022. It would then review what the appropriate deadline should be. It expected to have better visibility of the completion of local authority audits by 2022, and that we would see progress in timeliness in the audit cycles for 2021 and 2022.19 The Local Government Association noted that the move of the audit deadline to 30 September for the next two years was a positive one.20
Government Response
Not Addressed
HM Government
Not Addressed
1.3 As part of the government’s response to the Redmond Review, the Ministry for Housing, Communities and Local Government (the department or MHCLG) has taken action to help improve the timeliness of auditor reporting, extending the publication deadline for audited local authority accounts to 30 September for two years, provided an additional £15 million to local bodies to help with the costs of audit and new burdens from the review, and committed to amend regulations to provide the appointing person (Public Sector Audit Appointments Ltd or PSAA) with greater flexibility to agree additional costs. 1.4 The department also welcome the work undertaken by the National Audit Office (NAO) and Financial Reporting Council (FRC) to update Auditor Guidance Notes 03 and 07, and guidance on going concern, to assist delivery of 2020-21 audits, and are working with stakeholders to consider whether there are other steps that could assist timely delivery. 1.5 However, it will take time to get things back on track. The department is currently consulting on broader proposals to strengthen the wider system, including to increase auditor capacity and capability. The department will write to the Committee in September 2021 with an update on plans and timetable for getting timeliness back on track, and then provide a further update on its work to address timeliness issues, as well as the other recommendations from the Committee, as part of the department’s response to that consultation, later in 2021. The department has also committed to work with stakeholders and review the audit deadline following the completion of 2021-22 audits.