Central Government Audit in the UK after Devolution
A Paper by the Public Audit Forum

A paper published today by the Public Audit Forum explains how the new accountability arrangements for public money after devolution have made public audit even better suited to local circumstances. Devolution has changed the way central government money is spent in the United Kingdom. Responsibility for well over £30 billion a year now lies with the devolved administrations in Scotland, Wales and Northern Ireland. These changes in accountability have also meant changes in the audit arrangements.

Sir John Bourn, Comptroller and Auditor General, Auditor General for Wales and chairman of the Public Audit Forum said, "This paper confirms that in the period following devolution robust audit and accountability arrangements have been in place to support the new constitutional environment. Public sector auditors are showing a tremendous capacity to learn from the good things their counterparts are doing. And they are tireless in their efforts to work together to provide the best audit service and bring the maximum benefits from their work."

The paper gives practical examples of how the public audit agencies are collaborating to maximise the benefit of their work and avoid duplication of effort. For example, the National Audit Office and Audit Scotland have formed a joint audit team to undertake audit work on the Forestry Commission on behalf of the Comptroller and Auditor General, the Auditor General for Scotland and the Auditor General for Wales. And, in March 2001, the National Audit Office, Auditor General for Wales and Audit Commission completed a joint review of education and training for healthcare staff which provides a comprehensive picture of education, training and staff development, and makes significant practical recommendations for improvement.

The paper sets out the changes to audit and accountability arrangements after devolution and how the audit agencies are building on existing collaboration to share knowledge and co-ordinate their work. It shows that the agencies work to professional standards shared by all auditors of financial statements, and within established frameworks for co-operation between auditors. They also have a shared understanding of the importance and key features of value for money examinations.

It also illustrates ways in which developments such as the Modernising Government Agenda and introduction of resource accounting and budgeting, corporate governance and public service agreements have led to new ways of working and increased the need for co-operation between auditors. Co-operation between auditors yields good practice lessons on issues of common interest in England, Scotland, Wales and Northern Ireland, and between central and local government.

Andrew Foster, Controller of the Audit Commission in England and Wales, said "devolution has not changed the formal role or responsibilities of the Audit Commission, which has responsibility for audit of local government and National Health Service bodies in England and Wales, but it has had to develop a new relationship with the National Assembly for Wales. However, it is important that all public auditors continue to collaborate so that consistent and high standards of public audit are maintained, they learn from each other and avoid duplication of effort. This paper shows how the auditors of local government and central government are working closely together in areas of common interest."

Robert Black, Auditor General for Scotland, commented that "Audit Scotland now brings together in one agency the auditors of central and local government, National Health Service bodies in Scotland, water authorities and further education colleges. As Audit Scotland provides audit services across such a wide range of bodies it is uniquely placed to support democratic scrutiny by the Scottish Parliament and promote consistent standards of performance and accounting throughout the public sector in Scotland."

John Dowdall, Comptroller and Auditor General for Northern Ireland, added "the audit arrangements now established in England, Wales, Scotland and Northern Ireland strengthen the ability of public auditors to plan and undertake their work in the way best suited to local circumstances. In Northern Ireland an important theme in the Executive's Programme for Government is working together to develop the new democratic structures and efficient, accountable public services. The Northern Ireland Audit Office is endeavouring to ensure that its programme of work complements and reinforces the objectives of the Programme."

NOTES TO EDITORS:

The Public Audit Forum, which was established in 1998, represents the six national audit agencies: National Audit Office; Audit Commission; Auditor General for Scotland; Accounts Commission for Scotland; Auditor General for Wales and the Northern Ireland Audit Office. The Forum's overall aim is to provide a focus for developmental thinking about public audit.

The Public Audit Forum has a 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.

The Public Audit Forum welcomes comments on this paper. These may be sent to the Public Audit Forum Secretariat, B361, 157-197 Buckingham Palace Road, Victoria, London SW1W 9SP, or comments may be emailed to james.bromiley@nao.gsi.gov.uk.

Press Notice 02/02
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