PSAA welcomes today’s MHCLG announcement on the action it will take to address the deeply concerning level of delayed local government audit opinions. We strongly support the commitment to ‘overhaul the local audit system to enable taxpayers to get better value for money’. MHCLG recognises the key role that effective audit has in ensuring transparency and accountability for the public money that local government bodies use to provide vital services.
The need to clear the backlog solution with the widespread issuing of disclaimed audit opinions is a painful reminder of the consequences of the broken local audit system in England. The work across the system to reform both the accounting and auditing frameworks needs to continue in order to reduce the volume of work needed to deliver a Code of Audit Practice compliant audit, a key aspect of ensuring that the backlog is not simply replaced with continuing disclaimed opinions. We are also acutely aware of the fundamental need for a fully functioning supply market that will provide alternative audit appointments when needed and competition for contracts.
Our Chair, Bill Butler, said;
‘Today’s statement by MHCLG illustrates the stark challenge facing local government audit, and the drastic nature of the steps needed to address it. This difficult but necessary solution has unprecedented consequences for the sector and the bodies affected, and recovery from it will be challenging for all parties. We look forward to the longer-term plans in the Autumn, and to playing our part in the welcome overhaul of the local audit system to enable bodies and the public to benefit from audits that add value, delivered by an enthusiastic and vibrant market. There is much to do.’