The review, led by the former President of the Chartered
Institute of Public Finance Sir Tony Redmond, was
launched in July 2019 to examine the effectiveness of
local authority financial reporting and the audit regime.
It will also examine whether the financial information
provided in local authority accounts facilitates scrutiny
by local taxpayers and by local press.
Today (17 September 2019) the independent review has
announced it is seeking views on the topic and encourages
practitioners who work in the local government sector,
the audit community, representative bodies and other
relevant or interested parties, to submit their response
to an open set of questions.
Local Government Minister , said:
It’s important that local authorities are held
financially accountable to reinforce public confidence
and deliver value for money for taxpayers.
That’s why the independent review being carried out by
Sir Tony Redmond, to ensure a robust local audit
system, is so vital. I encourage all interested parties
to submit evidence to help inform the review’s
recommendations.
Lead of the independent review, Sir Tony Redmond, said:
This call for evidence is a key part of my review of
the effectiveness of audit in local authorities and the
transparency of their financial reporting.
I will look to test the assurance processes in place
with regard to value for money arrangements together
with the financial resilience in local councils.
I am keen to hear from practitioners as well as the
audit community, and will consider all information as I
formulate my report to the Secretary of State.
Sir Tony is a former local authority Treasurer and Chief
Executive. He has also worked as a Local Government
Boundary Commissioner and held the post of Local
Government Ombudsman, along with a number of
non-executive positions in the public and third sectors.
The call for evidence will close on 22 November.
Sir Tony Redmond is expected to submit his report with
initial recommendations the Secretary of State in
January, with a final report published in March 2020.
Read the call for
views. Views can be submitted to the review team
using the email address redmond.review@communities.gov.uk.
Local authorities in England are responsible for 22% of
total UK public sector expenditure.
The review will also look at how councils publish their
annual accounts and if their financial reporting system
is sufficiently transparent to be held to account.
Read the full terms of
reference of the review.
The review of financial reporting and external audit
follows the full implementation of the Local Audit and
Accountability Act of 2014.
The responsibilities for local authority audits and how
they are conducted is set down within the Local Audit and
Accountability Act 2014.
The 2014 Act gave effect to manifesto commitments to
abolish the Audit Commission and its centralised
performance and inspection regimes and put in place a new
localised audit regime, refocussing local accountability
on improved transparency.
Now the Act has been fully implemented, the government is
required to review its effectiveness. This review will
meet the Ministry of Housing, Communities and Local
Government’s commitment to undertake a post
implementation review of the audit framework and
financial reporting elements of the Act.
