Report of the Local Government Efficiency Review Group

maintenance are provided by the county council on behalf of the town
council. For example, although 54 town councils are planning authorities, in
the bulk of cases in practice the planning staff of the county council prepare
reports on planning applications and prepare town development plans on
behalf of the town council. In the case of housing, technical assistance for
the capital programme is often provided to the town councils by county
council staff, and many housing waiting lists are either joint lists between the
county and town or managed by the county council on behalf of the town
(see section 5.5 for further details).
3.1.7 The Group noted the constructive approach local authorities had taken
towards adopting shared service models to date, but felt that more work
could be done in this area. An expansion of the shared approach to service
provision (both to other local authorities and to other service areas) offers
the potential for cost savings, particularly in areas which require a high
degree of specialisation. This issue is addressed in more detail in section 8.
3.2 Value for Money Agenda
3.2.1 The Group makes a number of recommendations on the role of the Local
Government Audit Service in section 7 designed to enhance its role and
effectiveness. The Local Government Audit Service, which acts as the
external auditor to local authorities, also incorporates a dedicated Value for
Money Unit which was established in 1993. The Unit has produced 25
Value for Money Reports on local authority activities to date covering topics
such as internal audit, financial management reporting, etc. A VFM study is
underway on local authority housing maintenance/ management of vacant
dwellings and a feasibility study is also being prepared on areas such as
local authority procurement practices. A listing of the VFM reports is
contained at Appendix 6.
3.2.2 The work of the VFM Unit has focused on undertaking national VFM studies
on single-issue topics and publishing reports on these. Where appropriate,
the implementation of the recommendations contained in these VFM reports
is monitored by the Local Government Audit Service at the annual
regulatory audit of the individual local authority annual financial statements.
3.2.3 Each local authority is expected to have an active and adequately resourced
internal audit function in place to assure local authority management and its
stakeholders that value for money is being achieved through maintaining
sound arrangements, including procedures for planning, appraisal,
authorisation and control of resources.
3.2.4 Significant enhancements have been made in recent years in equipping
local authorities with tools to measure and promote value for money. For
example, new Financial Management Systems (FMS) have been introduced
in all local authorities and these provide enhanced functionality and better
management information. Since 2004, local authority annual financial
statements are required to be prepared on a full accruals basis and to
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