Value for Money

Use of resources consultation for 2008 assessments

On 26 April 2007, the Audit Commission published for consultation their proposed changes to the key lines of enquiry for the 2008 use of resources assessments for single tier, county and district councils. 2008 will be the last year that they assess councils under the current Comprehensive Performance Assessment (CPA) framework, but they expect use of resources to remain as an important element of the new Comprehensive Area Assessment (CAA) from 2009.

Without anticipating the detail of CAA, they are proposing some changes to the key lines of enquiry for 2008 to help smooth the transition to the new performance framework. The White Paper Strong and Prosperous Communities indicated several issues and policy priorities that will need to be reflected in use of resources assessments under CAA. The Audit Commission is proposing to give more emphasis to these issues in 2008 to avoid too big a change the following year and to give councils time to plan and manage their response. They are also responding to the significant improvements in council performance for 2006 by continuing our policy of gradually raising standards.

Click here to access the Consultation on us of resources (2008).
Click here to access the Proposed KLOE for assessments starting in 2008.
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The move to international financial reporting standards (NHS)

In the Budget, the Government announced that all public sector bodies will be required to prepare their accounts in accordance with International Financial Reporting Standards (IFRS) from 2008/09. This announcement has significant implications for the way in which NHS bodies prepare their annual financial statements.  It also poses big challenges for us as auditors. The Audit Commission is committed to helping NHS bodies through this process and has published the second of a series of briefing papers, aimed at the preparers of accounts at NHS bodies, which will address developments in the application of IFRS.

Click here to access Audit Commission's briefing.
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Audit bodies join forces to drive value for money agenda

The UK's five leading audit bodies have developed a suite of indicators to help public sector managers challenge and improve the value for money of their corporate services. A joint report, published today by the Audit Commission, Audit Scotland, the National Audit Office, the Northern Ireland Audit Office, and the Wales Audit Office, includes five sets of indicators which allow organisations to assess the value for money performance of their:
• finance;
• human resources;
• information and communication technology;
• estates management; and
• procurement.

These services have been identified by the government as priority areas for increasing efficiency and releasing resources for use in delivering front line services. Local authorities and central government departments across the UK are facing pressure to make significant efficiency savings in the coming years, alongside more effective service delivery. The indicators are therefore underpinned by a focus on better outcomes for service users as well as value for money. The indicators have been designed to ensure that public bodies will be able not only to assess their own value for money performance but also compare their results against other public sector organisations everywhere in the UK.

Click here to read the full article.
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