17 March 2011 - Audit Scotland

Part 4. Best Value, use of resources and performanceAudited bodies’ responsibilities72. Local authorities have a statutory duty to make arrangements to secure Best Value; definedas the continuous improvement in the performance of functions. In securing Best Value, localauthorities must maintain a balance of quality and cost considerations and have regard, amongother things, to economy, efficiency and effectiveness (or ‘value for money’) and the need to meetequal opportunity requirements and contribute to the achievement of sustainable development.Local authorities also have a duty for community planning, which is to initiate, maintain andfacilitate consultation among and with public bodies, community bodies and others about theprovision of services in the area of the local authority and the planning of that provision.73. Best Value and community planning is broad in scope but a successful authority will:work with all relevant organisations in its area to identify a clear set of priorities thatrespond to the needs of the community in both the short and the longer termbe organised to deliver those prioritiesmeet and clearly demonstrate that it is meeting the community’s needs.74. For other sectors, the Scottish Public Finance Manual explains that accountable officersappointed by the Principal Accountable Officer for the Scottish Administration have a specificresponsibility to ensure that arrangements have been made to secure Best Value.75. Achievement of Best Value or value for money depends on the existence of soundmanagement arrangements for services, including procedures for planning, appraisal,authorisation and control, accountability and evaluation of the use of resources. Audited bodiesare responsible for ensuring that these matters are given due priority and resources, and thatproper procedures are established and operate satisfactorily.Auditors’ responsibilities76. The Local Government (Scotland) Act 1973 places a duty on the auditors of local governmentbodies to be satisfied that proper arrangements have been made for securing Best Value andcomplying with responsibilities relating to community planning.77. The Public Finance and Accountability (Scotland) Act 2000 gives the Auditor General the rightto initiate examinations into the economy, efficiency and effectiveness with which audited bodiesand certain other bodies have used their resources to discharge their functions. The results ofsuch examinations may be presented to the Scottish Parliament and considered by its AuditCommittee.78. Auditors of local government bodies also have a responsibility to review and report on thearrangements that specified audited bodies have made to prepare and publish performanceinformation in accordance with directions issued by the Accounts Commission.The audit of Best Value79. The Local Government in Scotland Act 2003 introduced duties for Scottish local authoritiesrelating to Best Value and community planning. The Accounts Commission holds authorities toaccount for these duties. The Commission has approved arrangements under Section 53 of theLocal Government in Scotland Act 2003 so that a team in Audit Scotland is primarily responsiblefor discharging the auditors’ responsibilities in this area – and conclusions provided in a publishedreport by the Controller of Audit. Auditors are key members of this team. The Commission maymake findings on the report and/or hold hearings.80. The timing and scope of these audits and other scrutiny work necessary to support them isdetermined through a shared risk assessment process. This also considers which scrutiny body isbest placed to conduct such work and the need for any joint activity. Auditors should undertake18