Audit Commission

The Audit Commission is discussing with unions a proposal to shrink its field force numbers by 100. The redundancies are proposed to take place during 2009/10.

This leaner workforce is being recommended following the move to Comprehensive Area Assessment (soon to be known as 'oneplace') with its reduced levels of inspection. Local government reorganisation has also cut the number of public bodies to be audited.

The Commission's headquarters staff numbers and corporate services are also under review, as are staff pay and grading. A third of the Audit Commission's central London office space at its Millbank headquarters has now been re-let after staff adopted streamlined working practices. This rationalisation alone will save an estimated £7 million over the next nine years.

Steve Bundred, the Commission’s Chief Executive, said: ‘We want to be exemplary in our commitment to providing value for money, demonstrably practising what we preach over new ways of working, shared services and use of technology.’

To help councils, primary care trusts and other audited bodies further the Commission is subsidising the extra costs of adopting new international financial reporting standards (IFRS). It will shortly consult on a proposed scale of fees for 2010/11, and indicative fees for the subsequent two years.

The proposed fees recognise the financial pressures that public bodies are facing during the downturn, and the Commission has already decided to subsidise audited bodies by covering the one-off element of the cost of transition to the new IFRS.

Notes to editors

1. The Audit Commission also recently announced the scrapping of Directors' Bonuses for 25 top managers, and a cut in its annual pay bill of £2 million or 2.3 per cent. 89 posts were shed in 2008/09, already reducing staffing by 4.3 per cent.
2. Staff mileage has been reduced by encouraging the use of video conferencing and public transport.
3. The Commission has upheld its commitment to a multi-year salary deal, which saw staff accept below-inflation increases in the last two years, and 4.9 per cent from April this year, reflecting inflation in the six months to September 2008. The basis for pay negotiations for next year will be the movement of prices in the six months to this September.
4. The Audit Commission is an independent watchdog, driving economy, efficiency and effectiveness in local public services to deliver better outcomes for everyone. Our work across local government, health, housing, community safety and fire and rescue services means that we have a unique perspective. We promote value for money for taxpayers, auditing and inspecting 11,000 local public bodies. As a force for improvement, we work in partnership to assess local public services and make practical recommendations for promoting a better quality of life for local people.
5. Further details about the role of the Audit Commission can be obtained from - http://www.audit-commission.gov.uk