PSAA welcomes DULCH and NAO’s proposal to address local audit delays

PSAA and all local audit system partners have a shared resolve to address the “significant numbers” of delayed audit opinions.

The news comes after the Department for Levelling Up, Housing and Communities (DLUCH) and the National Audit Office (NAO) released a joint statement stating that the backlog in the publication of audited accounts of local bodies in England has grown to an “unacceptable level”.

The number of outstanding opinions peaked on 30 September 2023 at 918. As at 31 December 2023, the backlog of outstanding audit opinions stood at 771.

As a result, alongside the publication of a new joint statement, DLUHC and the NAO have launched consultations on proposals with the aim of restoring timely, “high-quality” financial reporting and audit.

To clear the backlog of historical accounts and ‘reset’ the system,

• DLUHC is seeking views on changes aimed at addressing the local audit backlog to introduce backstop dates for the publication of audited accounts.
• The NAO is seeking views on changes to the Code of Audit Practice to support auditors to meet backstop dates and promote more timely reporting of their work on value for money arrangements.

The consultations will close on 7 March 2024.

PSAA welcomes these proposals to reset and recover from the “untenable position” of very large numbers of delayed audits.

Steve Freer, chair of PSAA, said: “Delayed audit opinions pose a real threat to good stewardship and financial management. Ultimately, they weaken accountability and undermine public confidence and trust.

“We agree that the exceptional measures outlined are the best available options to tackle the problem. All three phases – reset, recovery and reform – will pose different challenges and will need our collective commitment and support to secure the consistently high levels of assurance which we all want to see.”