Over 1,000 small bodies have had their accounts qualified in the previous year, according to the final report from the Audit Commission
The Commission, which is to be abolished with effect from next year, said that while ‘financial reporting was consistently strong for most types of principal local authority in 2013/14 when compared to the previous financial year’, it found problems with a range of smaller bodies.
The results show 1,015 parish councils (11%) received a qualified opinion on their 2013/14 annual return by 30 September 2014 compared with 8% previously. In addition 19 internal drainage boards (16%) also had their returns qualified, up from 9%.
The Commission’s controller of audit, Marcine Waterman, said: ‘Although 99% of small bodies received an audit opinion by 30 September this year, we have unfortunately seen a decline in the quality of reporting.
'This is significant as, although “small”, these bodies should not be overlooked. They include 9,637 parish councils and 122 IDBs, which spend around £500m and £70m of public money each year, respectively.’
In addition, there are 74 parish councils where auditors have qualified the opinion for three consecutive years (2011/12 to 2013/14). The Commission says the persistent qualification of the opinion at these parish councils suggests systemic weaknesses in their financial management and governance arrangements which need to be addressed locally.
In comparison, of 512 principal bodies, none had received a qualified audit opinion on their 2013/14 accounts and only 14 councils and two police bodies had their arrangement for securing value for money (VFM) qualified. Auditors issued a ‘report on matters arising’ from their VFM work at one council and one other local government body.
The Commission also highlighted two bodies that did not publish their accounts, either audited or unaudited, by 30 September 2014: Hampshire Fire and Rescue Authority; and the London Borough of Lambeth.
Waterman said: ‘For these two bodies, I am concerned by this lack of transparency.’
The Audit Commission’s Auditing the Accounts 2013/4: Local Government Bodies is here: http://www.audit-commission.gov.uk/audit-regime/codes-of-audit-practice/auditing-the-accounts/
