Auditing the accounts

Audited accounts are the main way public bodies show accountability for managing public money. Publishing timely audited accounts is a fundamental feature of good governance.

The Audit Commission’s Auditing the accounts reports summarise the results of auditors’ work on the financial statements at local public bodies. Every December the Commission reports on auditors’ work at councils, police bodies, fire and rescue authorities, local government bodies, parish councils and internal drainage boards.

In July 2013, the Commission published its first Auditing the accounts report for NHS bodies, reporting the results of auditors’ work for 2012/13.

Auditing the accounts 2012/13: NHS bodies

The Audit Commission’s Auditing the accounts 2012/13: NHS bodies summarises the results of auditors’ work for 2012/13 at NHS bodies within the Commission’s audit regime. These bodies comprised NHS trusts, primary care trusts and strategic health authorities.

The report covers the timeliness and quality of financial reporting, auditors’ local value for money work, the extent to which auditors utilised their statutory reporting powers and the challenges facing NHS bodies for 2013/14.

The Commission reports that overall, NHS bodies maintained their level of performance on financial reporting for 2012/13. This is a significant achievement given the changes to the structure of the NHS that took place at the end of the 2012/13 financial year.

Almost all NHS bodies submitted their draft and final audited accounts to the Department of Health by the relevant deadlines and, to date, no NHS bodies have received a qualified accounts opinion. The level of adjustments made between the draft and final accounts was not significant which is an indicator of good quality draft accounts.

The majority of NHS bodies put in place proper arrangements for securing value for money. However, auditors at 26 per cent of NHS trusts issued a non-standard VFM conclusion related to concerns about financial resilience.

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Auditing the Accounts 2012/13 – NHS bodies

Auditing the accounts 2011/12: Quality and timeliness of local public bodies’ financial reporting

The Audit Commission’s Auditing the Accounts 2011/12 report summarises the results of auditors’ work for 2011/12 at councils, fire and rescue authorities, police bodies, other local government bodies, parish councils and internal drainage boards. The report covers the timeliness and quality of financial reporting and summarises:

• auditors’ work on the 2011/12 financial statements;
• auditors’ work on the Whole of Government Accounts returns;
• auditors’ local value for money work;
• public interest reports and statutory recommendations issued by auditors since December 2011; and
• the key financial reporting and financial management challenges facing bodies for 2012/13.

The Commission reports that auditors were able to issue the audit opinion by 30 September 2012 at 98 per cent of councils, all fire and rescue authorities, 97 per cent of police bodies, all other local government bodies, 97 per cent of parish councils and 97 per cent of internal drainage boards. This is an improvement for all types of body compared with 2010/11.

Eleven principal bodies received an unqualified audit opinion by 31 July 2012 and published their audited accounts promptly. At the date of preparing the report, no principal bodies had received a qualified audit opinion on the 2011/12 accounts, which is a considerable achievement. The overwhelming majority of small bodies (93 per cent of parish councils and 96 per cent of internal drainage boards) received an unqualified opinion on their 2011/12 annual return by 30 September.

To accompany the report, the Commission has published a list of the qualified 2011/12 opinions for small bodies. The list identifies those parish councils and internal drainage boards where auditors issued a qualified opinion on the 2011/12 annual return, and whether the opinion was also qualified in either of the previous two years.

Please note the report and accompanying list of small bodies with qualified opinions has been updated since the 13 December 2012 publication date. Two parish councils, Dodderhill Parish Council and Wick Parish Council, and two internal drainage boards, Black Sluice IDB and Lindsey Marsh DB, were incorrectly identified as having received a qualified opinion on their 2011/12 annual return. Relevant sections of the report have been amended accordingly (paragraphs 88, 89, 92, 94 and 98; tables 9 and 10; figures 3 and 4; appendix 6; and the second bullet point in the summary on page 3).

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Auditing the accounts 2011/12
Qualified opinions for small bodies

Auditing the accounts 2010/11

 

The Audit Commission’s Auditing the Accounts 2010/11 reports, summarise the quality and timeliness of financial reporting by councils, police authorities, fire and rescue authorities, other local public bodies, parish councils and internal drainage boards.

 

The Commission also published a list of qualified 2010/11 opinions for parish councils.

Auditing the accounts 2010/11 – Internal drainage boards
Auditing the accounts 2010/11 – Parish councils
Auditing the accounts 2010/11 – Councils and local government bodies, police authorities and fire and rescue authorities
Parish councils qualified 2010/11 opinions

For earlier Auditing the accounts reports, see our archive.