When the Audit Commission closes in March 2015, the Local Government Association (LGA) and the Chartered Institute of Public Finance and Accountancy (CIPFA) will take its statutory services.
The LGA will set up a private company to take over audit contracts when the Audit Commission closes in March 2015, while CIPFA will establish a new ‘counter-fraud centre’.
Under plans unveiled by the Department of Communities and Local Government (DCLG), the commission’s responsibility for overseeing external audit contracts will be taken on by the new firm, until local authorities undertake their own auditing contracts, which could start as soon as 2017.
Chairman of the commission, Jeremy Newman said it was ‘a bold move’ to by the DCLG to choose the LGA for the role.
He said: ‘The private company will need to maintain the integrity of the contracts, manage conflicts of interest and resolve any disputes between auditors and audited bodies. Given that all these aspects must to be operational from day one, there is a lot to be done and this is an ambitious timetable.’
Audit Commission staff will transfer across to the new company.
CIPFA’s Counter Fraud Centre will support local authorities to tackle fraud and corruption.
Mr Newman said the commission’s Fraud and Corruption Survey – which will be taken on by CIPFA – ‘was a unique and comprehensive view of fraud and emerging frauds against local government’
