Thomas Bridge 18 July 2014

Local audit plans could place ‘much greater burden’ on councils

Auditors have slammed plans to reform how parish councils are held to account, branding Government proposals overly ‘complex’.

In a letter sent to the Department for Communities and Local Government (DCLG) today, the Audit Commission urged ministers to rethink planned changes to local audit regulations for parish councils.

The watchdog said moves to force local bodies to appoint an auditor would raise costs and place ‘a much greater burden’ on town halls.

‘The Government wants high quality and cost-effective assurance that promotes transparency. It is trying to reduce the burden on authorities, but its proposals will do the opposite,’ Commission chair, Audit Jeremy Newman, said.

‘The Government needs to either keep the current assurance arrangements in place, or accept that the small spending levels of these bodies, coupled with their closeness to their communities, means that external audit is disproportionate.’

Measures due for introduction in April 2017 could end routine external checks for councils spending less than £25,000 a year. These bodies would instead be required to employ an auditor contactable by local residents who have questions or concerns.

Auditors said this would ‘inevitably’ cost these town halls more than current arrangements.

The Commission also described regulations making provision for all procurement possibilities as ‘close to impenetrable’.

Newman added: ‘The Government is seeking to reduce the burden by ending audit for many authorities, while keeping the right of all local tax payers to approach an auditor to challenge their authority’s spending. This has created complex regulations that are difficult to understand.’

A DCLG spokesman said: ‘The Government’s reforms give councils more freedom, improve transparency and accountability to local residents and will save taxpayers £1.2bn over 10 years.

‘We will respond to the consultation in due course as we continue to drive forward these important changes to ensure local appointment of auditors in 2017.’

A consultation on local audit regulations closed this morning.

Black hole spending review image

Black hole spending review

Jonathan Werran, chief executive of Localis, reflects on what the Spending Review means for local government.
SIGN UP
For your free daily news bulletin
Highways jobs

Estates Officer - Uttlesford District Council

Essex County Council
Up to £15.0000 per hour
Estates OfficerFull-Time, Temporary*37 Hours per Week£15 per Hour Closing Date
Recuriter: Essex County Council

Financial Accountant

The Royal Borough of Kensington & Chelsea Council
Negotiable
Help us get the details right - so we can deliver what matters most.As a Financial Accountant, you'll play a key role in keeping our finances sound an England, London
Recuriter: The Royal Borough of Kensington & Chelsea Council

Estates Surveyor

North Yorkshire Council
£37,035 - £45,718 per annum
If you are a member of RICS, looking for you next challenge and have experience as a quantity surveyor, we would love to hear from you! Northallerton, North Yorkshire
Recuriter: North Yorkshire Council

Planning Solicitor

Hinckley & Bosworth Borough Council
Grade 8, £41,511 up to £45,718 per annum pro rata (Pay award pending)
This role requires the expertise of a seasoned planning lawyer Hinckley, Leicestershire
Recuriter: Hinckley & Bosworth Borough Council

Principal Information Governance Officer

Derby City Council
H £36,124 - £38,626 per year
An exciting opportunity has arisen to join the Information Governance team at Derby City Council. Derby, Derbyshire
Recuriter: Derby City Council
Linkedin Banner