Backlogs in the audit of Englandās 426 local authorities means the National Audit Office has refused to sign off the Whole of Government Accounts (WGA) for 2022-23, for the first time ever!
As well as local authority accounts, the WGA includes the accounts of over 10,000 public bodies, such as central government departments, devolved administrations, the NHS, academy schools and public corporations.
Within his audit report, the NAOās head, Gareth Davies (pictured), said he had been āunable to obtain sufficient, appropriate evidence upon which to form an opinionā.
Just over 10% (43) of Englandās 426 local authorities submitted reliable data to the WGA. Of the near 90% of local authorities that failed to submit reliable data, 46% (196) submitted information that hasnāt been audited, and 44% (187) did not submit any data at all.
The Government is taking steps to address the backlog in audited accounts for English local authorities, including the use of fixed dates by which each yearās audits must be completed. This process is unlikely to allow the disclaimer on WGA to be removed for 2023-24, but it does offer a medium-term solution to the problem.
The WGA is a vital tool in the management and scrutiny of public spending, as it brings together all public sector assets, liabilities, income and expenditure. This means that long-term costs to the public purse such as clinical negligence and nuclear decommissioning are visible to policy makers and Parliamentarians.
Gareth Davies, head of the NAO said: āIt is clearly not acceptable that delays in audited accounts for English local authorities have made it impossible for me to provide assurance on the Whole of Government Accounts for 2022-23. It is essential that the steps being taken by Government to restore timely and robust local authority audited accounts are effective.ā
