17 March 2011 - Audit Scotland

ACCOUNTS COMMISSIONAGENDA ITEM 9Paper: AC.2011.3.6MEETING 17 MARCH 2011REPORT BY DIRECTOR OF BEST VALUE AND SCRUTINY IMPROVEMENTLOCAL GOVERNMENT OVERVIEW REPORTINGPurpose1. The Accounts Commission’s findings along with the Controller of Audit’s report AnOverview of Local Government in Scotland 2010 were published on 28 January 2011.2. Following an initial discussion by the Financial Audit and Assurance Committee at itsmeeting on 10 February, the purpose of this report is to invite the Commission toconsider its approach to future overview reports.3. The Commission’s attention is draw to the minutes of the Financial Audit and AssuranceCommittee, in which it is recorded that:―The Committee noted that the Accounts Commission has initiated this report bymaking a standing direction to the Controller of Audit under section 102(1) of theLocal Government (Scotland) Act 1973, as amended, to produce an overview reporton issues arising from the audit of local authority accounts. The Committee noted thatthe report now also draws on wider audit work.The Committee considered options for its approach to future overview reports andagreed to recommend to the Commission that —Future overview reports should be prepared under section 97A of the LocalGovernment (Scotland) Act 1973, as amended – the Commission’s powers toundertake or promote comparative and other studies to enable it to makerecommendations on matters such as best value, financial and othermanagement, and the economy, efficiency and effectiveness of localauthorities.In order to maintain the connection between the report and issues arising fromthe audit of accounts, the oversight of the development of the report should bedelegated to the Financial Audit and Assurance Committee, with a draft reportbeing submitted to the Commission for approval in due course.The style and presentation of the report should seek to—o maintain a clear connection to evidence arising from the reports to theController of Audit on the audited accounts, ando provide the Commission with the opportunity to make its ownrecommendations on issues arising from the evidence.‖4. The Commission is invited to consider whether to approve the Committee’srecommendations.Discussion of the options for local government overview reportingThe current status of the report5. To date the overview report has been produced as a report to the Commission by theController of Audit. The Commission has initiated this by using its powers under section102(1) of the Local Government (Scotland) Act 1973 to make a standing direction to theController of Audit to produce an overview report on issues arising from the audit of local1