Audit Commission

What we did

From 2005/06, appointed auditors carried out annual assessments of primary care trusts and NHS trusts using the Auditors’ Local Evaluation (ALE). ALE assessed how well NHS organisations managed and used their financial resources and highlighted areas for improvement. 

In 2008/09, ALE for primary care trusts was replaced by a use of resources assessment. Auditors continued to carry out ALE assessments for NHS Trusts. 

Auditors carried out use of resources and ALE assessments for the final time in 2009/10.

Use of resources methodology for primary care trusts 2008/09 and 2009/10

For the 2008/09 financial year, we introduced a common framework for use of resources across:

• local authorities - London, metropolitan, unitary, county and district councils;
• fire and rescue authorities;
• police authorities; and
• primary care trusts.

In May 2010, the new government announced it would abolish Comprehensive Area Assessment (CAA). In response, the Commission directed auditors to cease all use of resources assessment work at local authorities, police authorities and fire and rescue authorities with immediate effect.

This document sets out the Audit Commission's approach to auditors' use of resources work from 2008/09. It outlines the key features of use of resources judgements for CAA.

Use of resources framework: Overall approach and key lines of enquiry - May 2008 (updated October 2009) ( PDF, 368kb )

We developed this framework following extensive consultation.

We also published guidance to help auditors make their judgements.

Auditors' Local Evaluation for NHS trusts and primary care trusts

From 2005/06, auditors carried out annual assessments of primary care trusts and NHS trusts using the Auditor's Local Evaluation (ALE). ALE assessed how well NHS organisations managed and used their financial resources and highlighted areas for improvement.

Auditors made judgements based on high-level questions called key lines of enquiry (KLOE), which were underpinned by audit criteria.

KLOEs were detailed questions that helped to inform our auditors' judgements when assessing the financial performance of NHS organisations. View the guidance and key lines of enquiry used by auditors:

2007/08 ALE guidance - NHS Trusts ( PDF, 233kb )

2007/08 ALE key lines of enquiry - NHS Trusts ( PDF, 102kb )

2007/08 ALE key lines of enquiry - Primary Care Trusts ( PDF, 109kb )

2007/08 ALE consultation ( PDF, 76kb )

2007/08 ALE consultation response ( PDF, 66kb )

For 2008/09 and 2009/10, primary care trusts were assessed under the Audit Commission's use of resources framework rather than under ALE. NHS trusts continued to be assessed under ALE.

Use of resources and ALE results

Overview of Auditors' Local Evaluation and use of resources results and scores for the following financial years:

- 2009/10
- 2008/09
- 2007/08
- 2006/07
- 2005/06

What we learnt

Through our use of resources assessments we identified and published examples of innovation, good practice and case studies. This encouraged learning and helped practitioners drive up the quality and efficiency of local services.

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