United Kingdom

Increasing the value of money in the parliamentary financial system

  • Plans to protect public funds and protect public funds have been announced
  • New consultation on proposals to strengthen local audit framework in response to Redmond review
  • The plan will help councils across England to level up and help them recover better from the pandemic.

A plan was announced today (July 28, 2021) by the government to strengthen Congress’s finances, reduce the risk to public funds, and ensure that Congress provides taxpayers with the value of money.

Changes in the capital finance system will improve risk monitoring methods, facilitate effective decision making and enable effective use of council funds.

With the recovery from the pandemic, Luke Hall, Minister of Local Government, has announced changes in efforts to increase public confidence and ensure that residents receive the quality of service they deserve.

Also, what is confirmed today New consultation A proposal on how the new regulator, the Audit Reporting and Governance Authority (ARGA), will act as a system leader in local auditing within the new simplified local auditing framework.

It also includes suggestions on how the government plans to implement other areas. Redmond ReviewThis was an independent review by Sir Tony Redmond on the effectiveness of external audits and the transparency of financial reporting in the council. These include:

  • Strengthen the way audit results are used by local agencies, including a proposal to include independent members in the local audit committee
  • Ensuring the supply of adequate experience and qualified local government auditors, including amendments to guidance related to key audit partners
  • Consider the features of the small body’s local audit, such as whether the small body’s threshold is set to the appropriate level.

In addition to this consultation, we have published two answers to previous local audit consultations – Allocate £ 15m to local organizations to support audit costs, When Regulatory changes that help increase the flexibility of audit payments, Both show significant support for the government’s proposal.

The government will continue to work closely with stakeholders such as local governments and audit firms to improve its commitment to system leadership and its proposals to implement various other commitments made in response to the Redmond Review. ..

The Minister of Regional Growth and the local government Luke Hall MP said:

During the pandemic, we worked closely with Congress to ensure that Congress had the resources it needed to provide critical services to the community.

With improvements, we are strengthening our local audit system, providing taxpayers with monetary value, supporting sound investment decisions, and maintaining public confidence in local governments.

The government will continue to monitor this sector and continue to consider whether further action and reforms are needed. We also work with local governments and other agencies in developing actions for oversight and intervention to ensure that the capital framework is fit for purpose.

More information

The equity and financial system is improved through a multi-action approach to successfully address all issues that pose a risk to the system.

  • The front line of management is the scrutiny of local government activities made possible by transparency and reporting. This includes effective oversight by governments and others with regulatory functions, but also ensuring that local governments are transparent enough to be able to explain locally. It will be.
  • The second line of control is the management system within the local government. At this level, government actions can directly address local mismanagement through direct intervention or help strengthen local government control and the ability to achieve better results. It aims to strengthen regional decision-making and risk management by supporting improved investment decision-making capabilities and governance.
  • The third line of control is the Prudential framework itself.It uses existing statutory authority for intervention, with opportunities that were not previously used to enhance the framework

View Redmond Review..

In response to Sir Tony’s review, from December:

  • We announced £ 15m this fiscal year to support the Council, which may incur additional audit costs. We talked about the distribution of this fund.
  • We have begun discussions on proposed changes to regulations related to fees that give audit companies more flexibility to ensure they receive payment for additional work required.
  • We work with stakeholders to provide other recommendations for which sector-led or system-wide response is appropriate.
  • The council has extended the deadline for publishing audited accounts to the first two years from July 31st to September 30th to give companies more time to complete their audits. ..

Increasing the value of money in the parliamentary financial system

SourceIncreasing the value of money in the parliamentary financial system

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