Public auditors support innovation in public services

Sound accountability structures generate public confidence that taxpayers' money is spent well. Public sector managers should put solid arrangements in place but must not allow the need for accountability to stifle worthwhile innovation. This is one of the key recommendations in a paper published today by the Public Audit Forum The Implications for Audit of the Modernising Government Agenda. The paper also encourages auditors to respond constructively and positively to Modernising Government initiatives and to support worthwhile change.

The paper represents a rapid response by auditors of public sector bodies to the Modernising Government White Paper, published on 30 March 1999. It has been developed by a Consultative Forum including representatives from local Government, the NHS, the Civil Service and the accountancy profession. The Forum has focused on the White Paper's aim of improving the way Government provides services through joined-up government, to deliver responsive, user-friendly services to the citizen. In doing so, the Consultative Forum recognise that Modernising Government represents a significant change in the public service environment and its implementation will require new ways of working and new forms of accountability.

Accountability is central because Parliament and the taxpayer need to be assured that public funds are spent properly and wisely. Public sector management needs to ensure, at the outset of Modernising Government initiatives, that there is a clear framework as to who is accountable to whom and for what. A project led by the Cabinet Office is separately looking at accountability and incentives to encourage better cross-departmental policy-making and implementation.

Modernising Government encourages bodies to adopt innovative and flexible approaches to service delivery. The Forum welcomes such initiatives and they stress that it is important for public sector managers to understand that the need to ensure proper accountability is not a reason for missing opportunities to deliver better value for money.

We believe auditors can support and encourage worthwhile change, while providing independent scrutiny and assurance, and fulfilling effectively their statutory and professional responsibilities.

The Paper considers the scope for public auditors to develop their approach so that they facilitate such innovation. It points to ways auditors have done this previously, for instance their approach to the Private Finance Initiative. The paper also emphasises the value of co-operation and joint working between auditors themselves: joined-up government requires joined-up auditing. Earlier this month, for example, the National Audit Office and the Audit Commission published the results of their second joined-up audit of housing benefit fraud.

Sir John Bourn, head of the National Audit Office and Chairman of the Forum, said that "Implementing these new initiatives involves significant challenges for managers in the public and private sector organisations concerned. Public auditors too will need to be open-minded and adaptable in their response. Everyone should be clear that the need for accountability is not an excuse for failing to innovate".

Andrew Foster, Controller of the Audit Commission, said "The Commission has long been committed to taking a citizen's perspective. Given its wide remit across the public sector it is well-placed through its studies and audit regime to facilitate joined-up solutions. We will continue to develop our cross-sectoral approach, emphasising what works well and helping to spread good practice".

NOTES TO EDITORS:

Public sector audit has a key part to play in safeguarding public money, ensuring proper accountability, upholding proper standards of conduct in public services and helping public services achieve value for money.

The Public Audit Forum was established in 1998 by the four national audit agencies, that is the National Audit Office (NAO) the Northern Ireland Audit Office (NIAO) the Audit Commission for Local Authorities and the National Health Service in England and Wales and the Accounts Commission for Scotland, to provide a focus for developmental thinking about public audit.

The Public Audit Forum has a specific remit to build on the existing co-operation between the national audit agencies to enhance the efficiency and effectiveness of public audit, to provide a strategic focus on issues cutting across their work and to develop common standards for public audit. This paper was prepared by a consultative forum which draws on the experience and expertise of public auditors, the bodies they audit, the auditing profession and the wider community.

An Adobe Acrobat PDF version of this report is available in the publications section of this website.

for further information please contact:
Susan Allsopp, Lisa Lee, Lynda Anderson or Adrian Roxan
on 0171 838 4848