In August 2010, the Department for Communities and Local Government (DCLG) announced plans to put in place new arrangements for auditing England's local public bodies.
New audit arrangements
In March 2011, DCLG issued a consultation document on the 'Future of local public audit', which the Commission responded to setting out its own views. In January 2012 DCLG published the government's response to the consultation, which the Commission welcomed but said there was still further work to do in a number of areas.
In the Queen’s Speech in May 2012 the government confirmed its intention to publish a draft Bill on the future arrangements for local public audit for further scrutiny and comment. The draft Bill will outline how the current audit regime and the Audit Commission will be replaced.
In-house Audit Practice
The Audit Commission's in-house Audit Practice currently undertakes the majority of audits for local public bodies. In July 2011, DCLG Ministers confirmed their preference for transferring this work to the private sector by outsourcing contracts.
The Commission's Board agreed this approach and carried out a procurement exercise to give private sector bidders the chance to compete for the Commission's audit work. This means all of the Commission's in-house work will be outsourced in time for the audit of 2012/13 accounts.
In March 2012 the Commission announced the results of the procurement exercise awarding five-year contracts to four private firms. Around 700 of the Commission's auditors will now transfer to new employers in October 2012. Later in March the Commission also confirmed arrangements for the audit of the country's 9,800 smaller local public bodies
The Audit Commission will remain in place to oversee the contracts and other statutory functions but will be significantly smaller following the outsourcing.
Select Committee inquiry
In November 2010 the Communities and Local Government Select Committee announced an inquiry into the 'Audit and inspection of local authorities'. The Commission submitted written evidence to the inquiry and in March 2011 our Chairman and Chief Executive gave oral evidence to the Committee. In July 2011 the Select Committee published its report on the inquiry, which the Commission welcomed in a statement.
NHS Foundation Trusts
Our Audit Practice also audits NHS foundation trusts under separate arrangements. However, this work will stop after the completion of the audit of 2011/12 accounts.
Current work programmes
If you have any questions about current work we are undertaking with your organisation, please get in touch with your normal Audit Commission contact.
For more general questions please contact our public enquiry line on 0844 798 3131. Journalists and broadcasters should call our national press office on 0844 798 2128.