Extraordinary intervention “urgently required to put local government audit system back on track”

Just five out of 467 local government bodies’ 2022/23 audit opinions had been given by the publication date of 30 September 2023, it has emerged.

Local government bodies are required to publish accounts with an auditor’s certificate or opinion by 30 September or to explain the reasons for non-publication.

Public Sector Audit Appointments (PSAA) said the delayed audit opinions for 2022/23 added to the 456 that were outstanding from previous years.

“The cumulative position of 918 delayed audit opinions emphasises how important it is that there is a successful conclusion to the intensive ongoing work to find a solution to the backlog, and to ensure that it does not recur.”

It said it was “making every effort to support this work” in collaboration with fellow members of the Local Audit Liaison Committee.

Steve Freer, PSAA’s Chair, said: “The scale of the backlog of local audit opinions is becoming more and more serious. It is now very clear that an extraordinary intervention of some sort is urgently required to put the system back on track. Hopefully, current work to develop a solution can be concluded quickly, enabling details of the planned solution to be announced and implemented as soon as possible.

“An important strand of any solution must be to address the root causes of so many delayed opinions so that following its implementation the delivery of timely opinions is firmly and permanently re-established.”

Responding to the PSAA report into delays in auditing councils accounts, Cllr Pete Marland, Chair of the Local Government Association’s Resources Board, said: “Councils have a statutory duty to publish audited accounts and council staff work hard to prepare these. It is unacceptable that because of delays in audit outside of their control that only five local authorities have been able to do so by the prescribed deadline.

“It is clear that the causes of the crisis in audit are not simple. It has long been recognised that they are multi-faceted and complex and will take time to address. It will take a concerted response from a range of organisations including the Government, audit firms and regulators.

“We are urging these parties to work together and for the Government to set a firm timetable by which timely audits will be restored.”