By Vivienne Russell | 9 January 2014
The Welsh auditor general has urged local authorities to ensure they have effective financial management arrangements in place after his annual audit review revealed that performance had slipped back.
The Wales Audit Office today published the third annual report on the quality of accounts submitted by councils and police bodies. This summaries auditors’ work for 2012/13 at unitary authorities, local government pension funds, police and crime commissioners, police constables, fire and rescue authorities, national park authorities and joint committees.
It found that all accounts were filed by the June 30 deadline and the quality of accounts was generally getting better compared to the 2011/12 financial year.
However, the WAO highlighted that, for the majority of local authority and police accounts, amendments were required following audit.
Among the concerns was the increase in the number of bodies whose accounts had to be amended for material items – matters of significance – particularly in the case of complex accounting requirements for property, plant and equipment.
‘As this is a common and recurring theme, audited bodies need to pay close attention to this when preparing their accounts and ensure findings from previous years’ accounts preparation and audit and any new accounting requirements are addressed,’ the report said.
Returns required from audited bodies to support the Whole of Government Accounts were, in most cases, not completed on time, the WAO found. It also said there was scope to improve annual governance statements.
Auditor general Huw Vaughan Thomas said: ‘While public bodies are getting better at submitting their accounts on time, and overall the quality seems to be improving, the financial climate makes it even more important for organisations to continue to improve their financial management and governance arrangements.
‘The financial forecasts continue to point to pressures and challenges for the public sector and, in light of the number of public interest reports that have been published in recent years on financial reporting and governance failings, organisations must not lose focus.’
