Source · Select Committees · Public Accounts Committee
Recommendation 4
4
The Department has not fulfilled previous assurances that it will be transparent about financial risk...
Conclusion
The Department has not fulfilled previous assurances that it will be transparent about financial risk in the sector by sharing information with the National Audit Office. The Department previously told us that it would ensure the National Audit Office can see any information that it needs to about local authority financial risk in order to support proper scrutiny by this Committee on behalf of Parliament. COVID-19: Local government finance 7 However, the Department has not provided all the information the National Audit Office has requested. Without this information, it is not possible for the National Audit Office or Parliament to get a full picture of the financial stress in the sector or evaluate how effectively the Department has addressed any issues. The Department has not yet found a satisfactory way of being transparent about the level of financial stress within the sector while maintaining appropriate levels of confidentiality in respect of information provided by local authorities. In the absence of other oversight mechanisms, Parliamentary scrutiny of the Department’s handling of financial risk in the sector is essential. Recommendation: In discussion with the National Audit Office, within three months the Department should find a way to share information relevant to financial risk in the sector, including about individual local authorities, while indicating on what basis it can or cannot be shared further.
Government Response
Acknowledged
HM Government
Acknowledged
4.1 The government agrees with the Committee’s recommendation. Target implementation date: October 2021 4.2 The department is mindful of the need for the National Audit Office (NAO) to receive information that will allow for them to make robust conclusions about the integrity and quality of the department’s work and to provide assurance on the department’s management of the accountability framework, as part of ongoing studies. 4.3 The department recognises the NAO’s legitimate statutory interest in these matters. At the same time, it is important that local authorities are able to engage with the department in confidence about their individual positions. The department has in the past shared material relating to our assessment of risks and challenges to support specific studies that recognises the confidentiality of conversations with individual local authorities. The department will continue to engage with NAO about how to meet their needs in this regard, in line with statutory responsibilities.