Ask the Auditor’s New Year’s wish list
0In our final Ask the Auditor of 2013, Graham Liddell from Grant Thornton UK LLP reflects upon the year and feedback from local authorities to set out his hopes and fears for financial reporting in 2014. To ask Graham a technical query, email editor@room151.co.uk
Ten things I am hoping for …
1 Recognition from members and other stakeholders that accounts are important for strong financial governance.
2 Members who have been provided with the training, tools and support they need to understand the accounts.
3 Audit Committees that challenge officers and auditors on the preparation and audit of the accounts in a strategic manner.
4 Ambitious plans to produce better accounts earlier by more councils.
5 More auditors and authorities working together in January and February to resolve potential sticking points rather than waiting until August or September.
6 More accounts that are substantially shorter (30%, say) and tell the story of the authority’s financial performance and financial position clearly.
7 More explanatory forwards that explain the numbers in the accounts.
8 Clear disclosure of the usable reserves held by an authority and what they will be used for.
9 Robust evidence that shows that the carrying value of land and buildings is materially accurate at 31 March 2014.
10 Disclosure of the fair value of PFI liabilities so we can see how much local authorities really owe.
Three things I am hoping to avoid seeing…
1 Unsubstantiated allegations of funds being squirrelled away in secret reserves (but see point 8 above) and use of the financial statements audit as a political football.
2 Policies for accounting for foreign exchange transactions where none occurred, disclosure notes full of zeros, information about immaterial amounts.
3 Provisions not recognised on the grounds that it is too difficult to make a reliable estimate.
