By Vivienne Russell
17 December 2009
The Audit Commission has named and shamed 10 councils that failed to publish audited accounts in time.
The commission said it was ‘unacceptable’ that councils were dragging their feet on financial reporting.
In an open letter to Communities and Local Government Secretary John Denham, Audit Commission chief executive Steve Bundred said: ‘The Audit Commission has been concerned for some time about the quality and timeliness of financial reporting by local government.’
The letter, issued today, names four councils that failed to have their accounts audited by November 30 2009 and a further six that received a qualified audit opinion.
Bundred said: ‘This is eight months after the end of the financial year to which [the accounts] relate. We think it unacceptable that authorities should not have been able to give an audited account of their stewardship of public money to local taxpayers within this timescale.’
The Audit Commission is calling on Denham to set a legal deadline for finance officers to submit draft accounts for audit.
Birmingham City Council was one of the four councils that failed to have its accounts audited by the November 30 deadline. Commenting on the commission’s open letter, corporate director of resources Paul Dransfield said Birmingham worked closely with the external auditor to deliver excellent financial management.
He added: ‘However, during this year’s audit it became clear that our historical asset registers had not been maintained either to my or our auditor’s satisfaction and need improvement. We have therefore jointly agreed to extend the audit period to immediately put into place the required changes to improve the accuracy of our balance sheet for 2008/09 and provide a solid base for the 2009/10 audit to be concluded in a timely manner.’
West Sussex County Council, which had its accounts qualified, said the council and auditor could not agree on the best way to value 10 care homes while the rest of the accounts were given a clean bill of health.
Louise Goldsmith, cabinet member for finance and resources at West Sussex, said: ‘Although it is disappointing that the auditor has not agreed with our valuation on the care homes, I welcome her positive opinion on the rest of the statements.
‘I am sure we could have reached agreement with the auditor on the outstanding issues but this would have cost the taxpayer additional audit fees as well as taking a great deal of staff time which could be better spent. We have agreed to differ but of course we will look at this afresh when preparing next year's accounts.’
The Audit Commission also praised five councils, two fire and rescue authorities and one police authority that published audited accounts in August and early September.
‘Their performance demonstrates what can be achieved when an authority gives financial reporting appropriate priority,’ Bundred said.
The commission said it will issue a similar letter next year listing all those authorities that fail to publish audited accounts by October 31.
Authorities named in the report with qualified audit opinions or audit opinion not issued as at November 30
Qualified audit opinion
Arun District Council
Bromsgrove District Council
Eastbourne Borough Council
Hertfordshire County Council
Oxford City Council
West Sussex County Council
Audit opinion not issued
Ashfield District Council
Birmingham City Council
Brentwood Borough Council *
Wycombe District Council *
* The auditor issued his opinion on December 10. Wycombe District Council had to reschedule the meeting of its audit committee to early December; the auditor was then able to issue an unqualified opinion. In the case of Brentwood Borough Council the auditor issued a qualified opinion.
Authorities praised for early publication of audited accounts
Local authorities
City of London Corporation
Greenwich London Borough Council
Kent County Council
Transport for London
Wandsworth Borough Council
Fire and rescue authorities
Hereford and Worcester Fire and Rescue Authority
Kent and Medway Fire and Rescue Authority
Police authorities
West Mercia Police Authority
17 December 2009
The Audit Commission has named and shamed 10 councils that failed to publish audited accounts in time.
The commission said it was ‘unacceptable’ that councils were dragging their feet on financial reporting.
In an open letter to Communities and Local Government Secretary John Denham, Audit Commission chief executive Steve Bundred said: ‘The Audit Commission has been concerned for some time about the quality and timeliness of financial reporting by local government.’
The letter, issued today, names four councils that failed to have their accounts audited by November 30 2009 and a further six that received a qualified audit opinion.
Bundred said: ‘This is eight months after the end of the financial year to which [the accounts] relate. We think it unacceptable that authorities should not have been able to give an audited account of their stewardship of public money to local taxpayers within this timescale.’
The Audit Commission is calling on Denham to set a legal deadline for finance officers to submit draft accounts for audit.
Birmingham City Council was one of the four councils that failed to have its accounts audited by the November 30 deadline. Commenting on the commission’s open letter, corporate director of resources Paul Dransfield said Birmingham worked closely with the external auditor to deliver excellent financial management.
He added: ‘However, during this year’s audit it became clear that our historical asset registers had not been maintained either to my or our auditor’s satisfaction and need improvement. We have therefore jointly agreed to extend the audit period to immediately put into place the required changes to improve the accuracy of our balance sheet for 2008/09 and provide a solid base for the 2009/10 audit to be concluded in a timely manner.’
West Sussex County Council, which had its accounts qualified, said the council and auditor could not agree on the best way to value 10 care homes while the rest of the accounts were given a clean bill of health.
Louise Goldsmith, cabinet member for finance and resources at West Sussex, said: ‘Although it is disappointing that the auditor has not agreed with our valuation on the care homes, I welcome her positive opinion on the rest of the statements.
‘I am sure we could have reached agreement with the auditor on the outstanding issues but this would have cost the taxpayer additional audit fees as well as taking a great deal of staff time which could be better spent. We have agreed to differ but of course we will look at this afresh when preparing next year's accounts.’
The Audit Commission also praised five councils, two fire and rescue authorities and one police authority that published audited accounts in August and early September.
‘Their performance demonstrates what can be achieved when an authority gives financial reporting appropriate priority,’ Bundred said.
The commission said it will issue a similar letter next year listing all those authorities that fail to publish audited accounts by October 31.
Authorities named in the report with qualified audit opinions or audit opinion not issued as at November 30
Qualified audit opinion
Arun District Council
Bromsgrove District Council
Eastbourne Borough Council
Hertfordshire County Council
Oxford City Council
West Sussex County Council
Audit opinion not issued
Ashfield District Council
Birmingham City Council
Brentwood Borough Council *
Wycombe District Council *
* The auditor issued his opinion on December 10. Wycombe District Council had to reschedule the meeting of its audit committee to early December; the auditor was then able to issue an unqualified opinion. In the case of Brentwood Borough Council the auditor issued a qualified opinion.
Authorities praised for early publication of audited accounts
Local authorities
City of London Corporation
Greenwich London Borough Council
Kent County Council
Transport for London
Wandsworth Borough Council
Fire and rescue authorities
Hereford and Worcester Fire and Rescue Authority
Kent and Medway Fire and Rescue Authority
Police authorities
West Mercia Police Authority
