Timeliness of local auditor reporting on local government in England

Public Accounts Committee Closed Inquiry
Opened: 23 Mar 2021 Closed: 16 Nov 2021 Parliament page
In 2019‑20, 487 local bodies including local councils, local police and local fire bodies in England spent nearly £100 billion delivering local public services that residents, businesses and taxpayers rely on every day.Proper accounting with high quality audit is essential for public trust in how taxpayers’ money is spent. Each … Read more
5 Recommendations
29 Conclusions
1 Report
2 Oral sessions
3 Letters
2 Events
Activity timeline 7 events
16 Nov
2021
Correspondence
28 Oct
2021
Report published
25 Oct
2021
Correspondence
14 Jul
2021
Report published
21 Jun
2021
Correspondence
20 May
2021
Oral evidence
17 May
2021
Oral evidence
Oral evidence sessions 2 sessions
20 May 2021
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Local government auditing in England 2020
Catherine Frances · Department for Levelling Up, Housing and Communities Jeremy Pocklington CB · Ministry of Defence Tony Crawley · Public Sector Audit Appointments Ltd
17 May 2021
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Local government auditing in England 2020
Fiona Baldwin · Grant Thornton Janet Dawson · Ernst and Young Mark Stocks · Grant Thornton Sir Tony Redmond · Chartered Institute of Public Finance and Accountancy (CIPFA)
Title HC No. Published Items Response
Eleventh Report - Local auditor reporting on local government in… HC 171 14 Jul 2021 34 Responded
Recommendations & Conclusions
6 results
Clear
9 Conclusion Acknowledged
Eleventh Report - Local auditor re…
We pressed the Department on when we would see improvements in the timeliness of local...
We pressed the Department on when we would see improvements in the timeliness of local authorities publishing their audited accounts. The Department felt that it would not be possible to bring timeliness back on track in one audit cycle in … Read more
Government Response
The government has already taken steps such as extending audit deadlines, providing £15 million to local bodies, and amending regulations to improve timeliness. It is consulting on broader proposals and will provide further updates later in 2021, committing to review the audit deadline after 2021-22 audits.
HM Treasury
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23 Conclusion Acknowledged
Eleventh Report - Local auditor re…
We pressed the Department on what it was doing to encourage a greater number of...
We pressed the Department on what it was doing to encourage a greater number of audit firms to carry out audits of local authorities. The Department agreed that maintaining capacity in the market for auditing local authorities was a serious … Read more
Government Response
The government agrees on the crucial importance of auditor availability for market sustainability and acknowledges that more needs to be done to encourage additional firms into the market.
HM Treasury
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25 Conclusion Acknowledged
Eleventh Report - Local auditor re…
PSAA recently commissioned research into the market for auditing local authorities which found challenges and...
PSAA recently commissioned research into the market for auditing local authorities which found challenges and barriers to audit firms looking to come into the market. New firms have to invest in their staff over time to build the specialist knowledge … Read more
Government Response
The government agrees that a ready availability of skilled auditors is crucial for the local audit market's sustainability and recognises that more needs to be done to encourage new firms.
HM Treasury
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27 Conclusion Acknowledged
Eleventh Report - Local auditor re…
We challenged the Department on the sustainability of firms auditing £100 billion a year of...
We challenged the Department on the sustainability of firms auditing £100 billion a year of spending by local government while relying on only a few hundred auditors with the requisite skills. The Department and PSAA recognised the challenge which audit … Read more
Government Response
The government agrees on the crucial importance of skilled auditors for the long-term sustainability and quality of the local audit market. It acknowledges the current market's dependency on a few big suppliers.
HM Treasury
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28 Conclusion Acknowledged
Eleventh Report - Local auditor re…
PSAA highlighted that the age profile of key audit partners was a factor likely to...
PSAA highlighted that the age profile of key audit partners was a factor likely to increase the challenge which audit firms faced, in having sufficient staff.80 EY confirmed that it was facing a retirement issue for its key audit partners, … Read more
Government Response
The government agrees that a ready availability of skilled auditors is crucial for market sustainability and quality, acknowledging that more needs to be done to encourage other firms into the market.
HM Treasury
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29 Conclusion Acknowledged
Eleventh Report - Local auditor re…
Sir Tony Redmond highlighted that his review found that the lack of career prospects and...
Sir Tony Redmond highlighted that his review found that the lack of career prospects and opportunities produced a real challenge for trainee accountants when considering whether to go into public sector accounting and auditing. He believed that audit firms needed … Read more
Government Response
The government agrees on the crucial importance of skilled auditors for the long-term sustainability and quality of the local audit market. It acknowledges the current market's dependency on a few big suppliers.
HM Treasury
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Government Response AI assessment · 33 of 5 classified
Accepted 21
Accepted in Part 1
Acknowledged 6
Not Addressed 5
Total 5 recs + 29 conclusions
Correspondence 3 letters
16 Nov 2021 Correspondence from Dame Meg Hillier, Chair, Committee of Public Account, re Treasury Minute response – Timeliness of local auditor reporting on local government in England, dated 8 November 2021
Parliament page
25 Oct 2021 Correspondence from Jeremy Pocklington CB, Permanent Secretary, Department for Levelling Up, Housing and Communities, re response to the Public Accounts Committee’s 11th Report of Session 2021–22 Timeliness of local auditor reporting and Treasury Minute, dated 6 October 2021
Parliament page
21 Jun 2021 Correspondence from Catherine Frances, Director General, Local Government, Strategy & Analysis Ministry of Housing, Communities & Local Government, re PAC hearing into audit delays follow up, dated 14 June 2021
Parliament page