William Eichler 18 August 2016

Welsh councils must ‘improve’ financial arrangements, auditors say

The financial planning of Welsh councils is ‘strengthening’, but there is still scope to improve the way savings are identified and delivered, auditors say.

The Wales Audit Office has published a report looking at the quality and effectiveness of current financial planning, control and governance arrangements of the 22 councils in Wales.

It found financial planning processes are ‘strengthening’ and that there are good systems in place that help ‘manage and control’ finances despite financial pressures.

The report also said local authority governance arrangements were ‘mostly sound’.

However, auditors highlighted a number of areas of concern. They revealed there is room for improvement in how savings are identified and delivered, and noted spending within budgets is proving to be a ‘challenge’ for some authorities.

They also warned the engagement of councillors and the effectiveness of decision making in respect of savings was ‘inconsistent’.

The Auditors’ report makes a number of recommendations. Councils, it said, should strengthen their financial-planning and performance management arrangements.

They should also develop corporate wide income generation and charging policies and ensure they have a comprehensive reserves strategy.

The 2015-16 Wales Audit Office report reflects the 2014-15 report where auditors raised the same concerns.

Welsh councils have faced dramatic cuts in recent years. The Welsh government announced a £175m reduction in core funding for 2014-15 and a further £65m in 2015-16.

The Welsh Local Government Association predicts financial pressures will mean the local shortfall will be around £460m by the end of this financial year.

‘Councils in Wales are facing significant financial challenges,’ said the Auditor General for Wales, Huw Vaughan Thomas.

‘The continued impact of austerity and reductions in public monies, coupled with the unclear implications of ‘Brexit’, require councils to continue to cope with uncertainties.

‘Whilst I am pleased to see councils making progress in strengthening their financial planning, they need to do more in response to the challenging environment and our recommendations to both authorities and Welsh government will help councils move forward and ensure that services are run as efficiently as possible.’

SIGN UP
For your free daily news bulletin
Highways jobs

HMO ASB OFFICER

Royal Borough of Greenwich
PO1 - £41,113 to £43,680
We are looking for three HMO Anti-Social Behaviour Officers to join our Private Housing London (Greater)
Recuriter: Royal Borough of Greenwich

South-East London Fostering Hub Programme Manager

Royal Borough of Greenwich
PO6 (£54,267 - £57,402)
The role will provide strong programme management oversight, ensuring projects are well planned, effectively delivered a London (Greater)
Recuriter: Royal Borough of Greenwich

Professional Educator (Part Time, 28 hours)

Royal Borough of Greenwich
PO6 - £54,267 to £57,402
We are looking for an experienced and enthusiastic Professional Educator to join our Quality Assurance and Workforce development Service. London (Greater)
Recuriter: Royal Borough of Greenwich

Principal Lawyer Litigation and Housing

Kirklees Metropolitan Council
£53,051 to £58,258
You will join a team of experienced Lawyers, Legal Officers, and Paralegals supported by a dedicated Business Support Team. Huddersfield, West Yorkshire
Recuriter: Kirklees Metropolitan Council

Principal Lawyer - Planning and Highways

Kirklees Metropolitan Council
£53,051 to £58,358 + £3000 Market Rate Supplement
You will be one of the lead lawyers in the team providing advice to officers and elected members. Huddersfield, West Yorkshire
Recuriter: Kirklees Metropolitan Council
Linkedin Banner