- The National Audit Office (NAO) has published the new draft Code of Audit Practice (the Code) 2024.
- It sets out how auditors of local public bodies – such as councils, police, fire and the NHS – can fulfil their statutory responsibilities under the Local Audit and Accountability Act 2014.
The Code, which will come into effect in the Autumn pending Parliamentary approval, will apply to audits which have not been certified complete at the time it comes into effect, and to the audits of local bodies from 2024-25, until it is replaced after 5 years.
Local public bodies account for a significant amount of public spending, delivering many of the public services people rely on every day, ranging from bin collection to providing for special educational needs.
Much of this money is raised through taxation. Consequently, citizens, taxpayers, national bodies, and other stakeholders reasonably expect assurance from auditors over whether the public bodies have proper arrangements in place to manage their business and finances.
Recognising the growing backlog in local authority audits, stakeholders across the local audit system, including the NAO, have been working on proposals to clear the backlog and return the local audit market to a sustainable footing.
Proposals for the draft Code were submitted to a consultation in February/March 2024, and are intended to support measures taken by the Ministry for Housing, Communities & Local Government (MHCLG) to address the current backlog of local government audits.
The NAO has also today published a consultation response, setting out the major changes to the draft Code and summarising the feedback received during the consultation.
The main proposed amendments are to give effect to the measures aimed at clearing the backlog and to help make reporting of work on value for money more timely.
Additionally, MHCLG has today laid a Statutory Instrument in Parliament, which will introduce statutory deadlines for the publication of audited accounts.
“The new Code will support the return to timely and effective local audit. Alongside other measures, including the introduction of statutory deadlines for the publication of audited account, the new Code aims to restore public confidence and put local audit on a more sustainable path.”
Gareth Davies, head of the NAO