The government has only made “sticking plaster” interventions to local audit and “long-term” changes must be implemented, the chair of the Public Accounts Committee (PAC) has stated.
As of September 2023, 918 local government audits were outstanding, whilst only 12% of local audit opinions arrived in time for the extended 2021/22 accounts deadline.
In February 2024, the government launched a consultation on the best way to clear the backlog, outlining several measures to “reset” the system, including setting a backstop date of 30 September for all outstanding accounts and temporary changes to the code of practice.
However, in her eighth annual report, Dame Meg Hillier criticised the government’s proposals, suggesting that it lacked “long-term thinking and investment” in the area.
“The Department for Levelling Up, Housing and Communities (DLUHC) has made only ‘sticking plaster’ interventions, like temporary changes to audit guidance, which have had little impact.
“Although the committee has asked for a timetable for improvement several times, DLUHC cannot say how and when this situation will improve,” Hillier said.
According to the report, local authorities in England spend over £100bn each year delivering public services. Hillier stated that this makes “timely audits” vital for councils, “so they know the resources which they have available and can make informed budgetary decisions”.
With the government yet to release the outcome of the consultation on addressing the local audit backlog, Hillier suggested that “delays increase the risk that issues will go undetected”.
Workforce challenges
The PAC’s chair also highlighted that a “barrier” when it comes to local audit is the small and ageing workforce, which she believes the government hasn’t sufficiently addressed in its proposals.
“DLUHC’s planned new qualification to support experienced audit staff to move from other sectors into the local audit sector will not provide the required numbers of staff quickly enough.
“Long-term workforce development is essential to build resilience,” Hillier added.
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