• Home
  • About
  • Subscribe
  • Conference
  • Events Calendar
  • Webcast151
  • MOTB
  • Log In
  • Register

Room 151

  • Treasury
  • Technical
  • Funding
  • Resources
  • LGPS
  • Development
  • 151 News
  • Blogs
    • David Green
    • Agent 151
    • Dan Bates
    • Richard Harbord
    • Stephen Sheen
    • James Bevan
    • Steve Bishop
    • Cllr John Clancy
    • David Crum
    • Graham Liddell
    • Ian O’Donnell
    • Jackie Shute
  • Interviews

NAO rejects option to allow extensions of revised audit code remit

0
  • by Colin Marrs
  • in 151 News · Technical
  • — 23 Jan, 2020

The National Audit Office has backed down on a proposal to allow the introduction of new reporting criteria for local authority audits during the lifetime of a new Code of Audit Practice being introduced in April.

The NAO this week published its response to its consultation on the text of the new code, which will contain three main criteria – financial sustainability, governance and improving economy, efficiency and effectiveness.

3rd LATIF NORTH
March 25th, 2020, Manchester
Council treasury investment & borrowing

However, it has removed wording which would have allowed it to extend the remit of auditors in the code, which will apply to all audits of public sector bodies.

In its response to the consultation, the NAO said: “This concerned some respondents, who thought this could lead to an extension of scope and an increase in costs.

“We will instead address any emerging issues relevant to the reporting criteria through the underlying statutory guidance.”

The NAO said that some respondents had suggested the code should include a new criterion covering partnership working.

However, it said that partnership working remains in the scope of the improving economy, efficiency and effectiveness arrangements, which it will clarify in supporting statutory guidance to accompany the code.

The public sector finance watchdog said that respondents largely supported the introduction of a “narrative-style” commentary against specified criteria, although some worried this could make comparisons between bodies and sectors more difficult.

However, the NAO said: “In our view, the inclusion of a requirement in the code to make recommendations where the auditor is not satisfied with the arrangements in place will allow for some comparison between bodies.”

Respondents also stressed that supporting statutory guidance should require this commentary to “provide effective and meaningful reporting on the adequacy of arrangements, and not simply describe the arrangements that the body has in place”, the NAO said.

It said that it had considered delaying the new code to wait for reviews including the Redmond review of local audit.

However, it said that legal requirements mean the code must be in place by April 2020.

In July last year, the NAO said it would retain a principles-based approach to the code, saying that a more prescriptive code could limit auditors’ ability to make judgements in the light of local circumstances.

The Room151 Weekly Newsletter covers local government treasury and pension investment, funding, development, resources and technical finance. Register here. 

The LGPS Quarterly Briefing focuses purely on pension fund investment. Register here.

Share

You may also like...

  • Business rates relief secure after NICs u-turn Business rates relief secure after NICs u-turn 16 Mar, 2017
  • Scotland warns budget delay jeopardises council services Scotland warns budget delay jeopardises council services 16 Jan, 2020
  • Croydon seeks institutional cash for housing development Croydon seeks institutional cash for housing development 23 Mar, 2017
  • Eastleigh pays down £300m of borrowing from other councils Eastleigh pays down £300m of borrowing from other councils 9 May, 2019

Leave a Reply Cancel reply

You must be logged in to post a comment.

  • Register to become a Room151 user

  • Latest tweets

    Room151 11 hours ago

    How can local government ‘build back better’?: Beverley Gower-Jones looks at the options for driving small business entrepreneurship in clean technologies. Innovation is essential for local authorities to save money and reduce emissions, it is the… dlvr.it/RtT3nS pic.twitter.com/bSMB6OG70t

    Room151 14 hours ago

    Helen Randall: Spelthorne report places spotlight on ‘controls’: Fresh criticism of Spelthorne Council raises the question of what “good” controls look like when negotiating a property deal. Spelthorne Council’s continuing debacle over property… dlvr.it/RtSPhy pic.twitter.com/9uCOJgBcH6

    Room151 14 hours ago

    Step-out strategies: Hitting the sweet spot between liquidity and ultra-short duration: Sponsored article: Jemma Clee describes how an ultra-short duration strategy can help local authorities enhance returns. Despite the expectation of a low, and… dlvr.it/RtSPZb pic.twitter.com/pdXPpv5lcN

    Room151 2 days ago

    What role will climate change have on the pricing of government bonds?: Sponsored article: Kerry Duffain finds that “vulnerability and resilience to climate change” have a significant impact on the cost of government borrowing. Ardea Investment… dlvr.it/RtNKv7 pic.twitter.com/wDjT31x4Yt

    Room151 2 days ago

    ESGenius: Slashing emissions will fuel green growth for decades: Sponsored article: Velislava Dimitrova argues that a big enough investment could mean transition to a low, or no, carbon economy can become a reality. The world needs to slash carbon[...] dlvr.it/RtKZJp pic.twitter.com/cd8S3ijERl

    Room151 2 days ago

    Prudential code: “Not perfect, but its heart is in the right place”: The new Prudential Code offers revised rules for borrowing. Nikki Bishop is sceptical it will work while Gary Fielding offers his support. Nikki Bishop I have been asked to give[...] dlvr.it/RtKZFh pic.twitter.com/OriN28lXcb

    Room151 3 days ago

    Tremendous report from @MarkSandford3 citing @room_151 no fewer than six times (despite what the @lgcplus fact checking/counting dept might tell you) #localgov commonslibrary.parliament.uk/research-brief… 1/5

    Room151 1 week ago

    Dan Bates: Capitalisation directions are not the only tool for rebuilding finances: Dan Bates argues deep seated problems are contributing to a rush for capitalisation directions. For some time now we have been reading that a number of councils are in… dlvr.it/RspKff pic.twitter.com/xRRsgVim9u

    Room151 2 weeks ago

    Is local government funding “broken”?: Andrew Hardingham looks at the underlying issues that caused more than a third of respondents in the Room151/CCLA treasury survey to say that the funding system for local govenrment is[...] dlvr.it/RsYhsg pic.twitter.com/plNp7Ayys6

  • Categories

    • 151 News
    • Agent 151
    • Blogs
    • Chris Buss
    • Cllr John Clancy
    • Dan Bates
    • David Crum
    • David Green
    • Development
    • Forum
    • Funding
    • Graham Liddell
    • Ian O'Donnell
    • Interviews
    • Jackie Shute
    • James Bevan
    • Jobs
    • LGPSi
    • Mark Finnegan
    • Recent Posts
    • Resources
    • Richard Harbord
    • Stephen Fitzgerald
    • Stephen Sheen
    • Steve Bishop
    • Technical
    • Treasury
    • Uncategorized
  • Archives

    • 2021
    • 2020
    • 2019
    • 2018
    • 2017
    • 2016
    • 2015
    • 2014
    • 2013
    • 2012
    • 2011
  • Previous story ‘Risky’ councils set to struggle to access PWLB alternatives
  • Next story Borough moves to bring care company back in-house

© Copyright 2021 Room 151. Typegrid Theme by WPBandit.