NO REPLY FROM AUDITOR

Question

Last year as a former Councillor I raised various issues with the external auditor . Understanding the process was a learning curve and the last I heard was at stage 2 when I was required to split the issues into public interest and unlawful payments.    During the ensuing months I became aware that dissatisfaction with the lack of PC accountability had led to a significant increase in objections around the country and that the audit firms were struggling to cope .  Anyhow my understanding was that there was a final reply due by the middle  of Jan 25.    Accordingly I wrote seeking an update but after 2/3 weeks I have heard nothing .  I am also picking up rumours that elsewhere Lead Roles in the PC audit regime have left .   So my question is where do we go when the external auditors don't reply ?

Answer 1

The SAAA are responsible for appointing the external auditors. You could try and contact them to see what they advise.

Their site says:

3. Complaints that SAAA can consider 3.1.SAAA can consider complaints: 3.1.1. that relate to a failure in service or maladministration by one of our firms of appointed auditors; or 3.1.2. about how a concern or query has been dealt with by SAAA 3.2.Service failure or failure to follow proper procedures by an appointed audit firm may include: 3.2.1. failure to comply with standards (relevant parts of the Code of Audit Practice and AGN 02); 3.2.2. discourtesy or rudeness; 3.2.3. discrimination; 3.2.4. unreasonable delay; 3.2.5. not responding to phone calls, emails or letters; 3.2.6. not providing answers to reasonable questions; 3.2.7. not answering complaints fully and promptly; or 3.2.8. failure to recognise and rectify mistakes

Comments

Thanks .  Contact points are here  https://www.saaa.co.uk/audit-appointments/.  Rang and they promised reply in one month. Incidentally if I have learnt one thing this year it is that the Internal Auditor's review is the most important , yet it seems that the electorate has no access to them. Is that correct ?   I say this as much that goes wrong is down to the failure of PCs to adopt proper practices. It seems these are often given little attention in IA reports and certainly not commented upon in any detail

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The Internal Audit regime is fundamentally flawed, as councils choose their IA and no formal qualifications are required for the role. There is a detailed specification covering every aspect of the expectations of the role, but no independent oversight that this process is followed. There are individuals and companies providing a rigorous examination in accordance with the regulations, but it's cheaper to appoint the Chair or Clerk's best mate.

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IA report should be the most important as the EA does not check anything unless a formal complaint is raised. However, as DTC has said, it is hit and miss whether the IA does a thorough job or not. Most are happy to tick the boxes and collect the fee - the PC's are also happy with this as it looks like they are doing a wonderful job.

I think the only legal requirement is for PC's to publish the Internal Audit Report page from AGAR and not the fuller report from the IA. Some PC's do publish this too, but a lot don't. If the PC is a smaller authority there is a requirement to publish a full explanation of why any of the IAR boxes have been ticked no, including an explanation of how any weaknesses will be addressed.

Even if there is nothing in law requiring the PC to publish the full IA report, there is nothing to stop you submitting a FOI request for this.

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Section 20 of the Accounts and Audit Regulations 2015 appears to suggest that all communications from the IA must be published online and made available to the public.

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DTC I have just obtained a copy of my IAs INTERIM report .  The IA positions that report as follows    "The objective of this interim review is to provide an appropriate level of assurance to the Council on their governance, procedures and financial control in advance of the main review at the financial year end. Any observations, therefore, should be seen as an ‘early warning’ of issues that need to be addressed in order to provide full and supportable assurances in the Annual Governance and Accountability Return (AGAR) for 2024-25".   The question is , is this report confidential and should an interim report be made available to the public? Also , can the electorate legitimately respond to it and can that response go to the IA? If there is a PC formal response to the interim report should that also be made  publicly available .   Also is there an agreed IA report process?

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I have to agree with the comments made . The council is ultimately responsible but naturallly they rely on the knowledge and professionalism of their Clerk/RFO. As we all know the clerk/RFO as the proper officer is a paid employee and very often accounts for a good percentage of the expenditure of the council yet unless there are good internal controls/ transparency and policies which are actually adhered to and not just left as paper accountability is often left to someone who 'challenges' the council. Increasingly Councils are seeking CiLCA qualified Clerks but perhaps this should be a statuatory requirement to replace the qualification of 'oh it only means you have to take the minutes' attitude. There is so much wrong at this level  of Local Government that really needs to be addressed. I am also not sure that either the External auditors or the ICO understand the legislation that applies to Town and Parish Councils

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There is so much wrong at this level  of Local Government.   I echo  that  Soucieux.  The [problem is doing something about it.  I have tried via the objection process but the audit system is weak and ineffective.  I doubt of  anybody other than  a Cllr can understand the process .  The problem is you get a once  a year chance at it and it is so easy to get things wrong procedurally .  The whole audit regime needs updating.  I suspect at the end of the day the government will say Localism is the answer warts and all .  Sadly is many cases "locals" have worked out how to work the system.