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Councils need to take qualifications to accounts more seriously

The National Audit Office (NAO) has produced a report on the quality of the auditing of local public-sector bodies, including councils.

In “Local Auditor Reporting in England 2018” the NAO says that when value for money conclusions to accounts are qualified, insufficient attention is being paid by local bodies, and that qualified value for money conclusions are unacceptably high and increasing.

“The proportion of local public bodies whose plans for keeping spending within budget are not fit for purpose, or who have significant weaknesses in their governance, is too high.

“This is a risk to public money and undermines confidence in how well local services are managed.

“Local bodies need to demonstrate to the wider public that they are managing their organisations effectively, and take local auditor reports seriously”.

The NAO gives particular emphasis to the need for ‘strong’ arrangements to manage money and obtain value for money in light of the financial pressures that local bodies have been subject to.

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