42:
404:
In 2009-10 the commission had an operating income of £213.1m. 86% of this came from fees charged to bodies audited; just 13% (£28.0m) came from central government grants. Around 70% of the commission's income in 2009-10 came from the local government sector, with the remainder coming from the health
400:
Between 1983 and 1998 the commission was self-funding, operating purely on income from audit fees. In 1998 the central government began providing grants to the commission due to its new responsibilities under "Best Value" legislation, and for the cost of setting up the Best Value and
Housing
138:. The commission's primary objective was to appoint auditors to a range of local public bodies in England, set the standards for auditors and oversee their work. The commission closed on 31 March 2015, with its functions being transferred to the voluntary, not-for-profit or private sector.
517:
which accused seven local authorities of acting negligently by depositing £33 million into
Icelandic banks a few days before they collapsed in October 2008. The Audit Commission had already stated that it too had deposited £10 million in Icelandic banks in the months leading up to the
141:
On 13 August 2010, it was leaked to the media, ahead of an official announcement, that the commission was to be scrapped. In 2009-10 the commission cost the central government £28 million to run, with the remainder of its income coming from audit fees charged to local public bodies.
232:
Since 1996 the Audit
Commission has run the National Fraud Initiative, a UK-wide anti-fraud programme. Between 1996 and 2013 it traced £1.17 billion in fraud, including £215 million in 2008-9, as more councils provided data and most recently £203m in 2012-13.
223:
and five other council officials 'jointly and severally' liable for repaying £36.1 million to the council. Mr Magill's verdict was upheld in the House of Lords in 2001. Dame
Shirley Porter eventually settled in 2004, paying £12.3 million to Westminster Council.
391:
Previously the commission also produced performance assessments for councils, fire and rescue services, and housing organisations. In July 2009, it launched the
Comprehensive Area Assessment, which assessed the effectiveness of local public services.
181:
in 1990, and fire and rescue services in 2004. In 1996 the commission began joint reviews of social services (with the Social
Services Inspectorate of the Department of Health), and in 1997, reviews of local education authorities (LEAs) jointly with
372:: The National Fraud Initiative compared data from a wide range of sources (including data from UKBA, Local Government, Central Government Departments and the NHS) to help participating organisations discover cases of fraud, overpayment and error.
538:
One of the features of the criticism of the Audit
Commission was an apparent campaign carried out in the press. On 3 November 2010, newspapers carried articles about alleged extravagant spending by the Audit Commission after its abolition was
312:
249:, announced that the commission was to be scrapped, with its functions being transferred to the voluntary, not-for-profit or private sector. The government aimed to save £50m annually, with the commission's function transferred to the
169:
extended the remit of the commission to cover health service bodies. Legislation covering the commission's activities was consolidated into the Audit
Commission Act 1998. In 1985-86 the commission led the investigation of the
300:
By 2023, it was being reported that many councils were years behind on having their accounts audited and that the closure and privatisation of the Audit
Commission was being seen as a failure. In an October 2023 piece for
315:, admitted that the local government audit system "has not worked as well as it should for a number of years". Only five out of 467 local authorities had their 2022-23 accounts signed off before the required deadline.
1220:
1354:
525:
accused the
Commission of "shocking excess" in its expenditure, such as hiring external venues for staff training. Michael O'Higgins, the commission's chairman, defended the expenditure on
919:
330:
242:
212:
was uncovered by the Audit Commission's District Auditor, John Magill, who found that between 1987 and 1989, council houses were sold at below market value to families likely to vote
293:
A small number of staff were retained at the Audit Commission to monitor these contracts until the commission was abolished. Provision to abolish the commission was included in the
1080:
1344:
166:
1230:
886:
377:
422:
257:
569:
1104:
250:
290:
won three and two contracts respectively. The Commission estimated that audit fee savings at 'up to 40%' will arise as a result of these arrangements.
1259:
Roper, I.; Higgin, P.; James, P. (2007). "Shaping the bargaining agenda. The Audit Commission and public service reform in British local government".
514:
994:
574:
1349:
294:
549:
477:
1199:
681:
613:
940:
1287:
823:
457:
405:
sector. Before the Coalition government announced further cuts, the commission had planned to cut spending by £32.1m by March 2013.
28:
1124:
376:
The Audit Commission worked in partnership with – but operated independently of – a number of government departments including the
783:
865:
366:: The Audit Commission published studies that analysed and commented upon wide-ranging social and financial issues in the UK.
896:
1157:
944:
664:
579:
469:
1143:
1053:
162:
1300:
Boyne, G. (1997). "Comparing the performance of local authorities: An evaluation of the audit commission indicators".
965:
349:
267:
suggested to a House of Lords committee that government should not sell the Audit Commission's practice to any of the
264:
1178:
1109:
1058:
473:
165:, to appoint auditors to all local authorities in England and Wales and it became operational on 1 April 1983. The
274:
In 2012 a proposed employee-owned firm won only one of ten regional contracts and was launched as a subsidiary of
1339:
489:
The commission had been criticised for its methods, particularly how it rated councils and health organisations.
461:
385:
190:
209:
174:
which resulted in 32 Lambeth councillors and 47 Liverpool councillors being surcharged and banned from office.
1324:
911:
564:
213:
205:
178:
1085:
490:
322:
171:
721:
1030:
429:(2008-2011) and Michael O'Higgins (2006-2012), who had for 10 years previously been managing partner of
303:
131:
1249:
803:
497:
described the process organisations go through to earn stars as "disrespectful and utterly perverse".
762:
1285:
Humphrey, J. C. (2002). "A scientific approach to politics? On the trail of the Audit Commission".
1225:
788:
741:
530:
326:
260:
expressed doubt that the private sector would match the commission's experience and consistency.
847:
701:
Kelly, Josie (2003). "The Audit Commission guiding, steering and regulating local government".
426:
268:
155:
833:
1272:
Kelly, J. (2003). "The Audit Commission guiding, steering and regulating local government".
668:
287:
333:, only 101 people in the entire country were qualified to audit local government accounts.
891:
465:
421:
The governing board of the Audit Commission was made up of commissioners appointed by the
17:
408:
Thirty percent of the commission's audits were carried out by five private audit firms.
282:
won the largest share, four contracts, and took on about 350 staff from the commission.
870:
559:
279:
220:
202:
135:
1333:
449:
445:
430:
1251:
Dying to Improve: The Demise of the Audit Commission and Other Improvement Agencies
1204:
1183:
1162:
1025:
999:
828:
767:
726:
360:, covering local government, health, housing, fire and rescue and community safety.
317:
246:
637:
1100:
1081:"Vince Cable: concerned NHS 'going against' joint working with local government"
554:
526:
501:
494:
453:
381:
513:
In 2009, the commission caused controversy when it published a report into the
1021:
308:
41:
1200:"Audit Commission chief hits back at government claims of excessive spending"
1129:
522:
506:
441:
Marcine Waterman took up the post of Controller of Audit in September 2012.
353:
348:: Auditors appointed by the Audit Commission were responsible for auditing
271:, otherwise their dominance of the audit market would be further enhanced.
1221:"Audit Commission spent £5,000 on lavish dinner after abolition announced"
746:
671:, EWHC 2382 (Admin), sections 17-19, 1 October 2009, accessed 5 June 2023
642:
151:
669:
Veolia ES Nottinghamshire Ltd v Nottinghamshire County Council & Ors
189:
On 1 April 2005, the commission's remit in Wales was transferred to the
510:
described as a "caustic personal attack" on Seddon from the commission.
357:
329:
in 2021) had not had an audit in five years and that, according to the
1319:
1158:"Councils were negligent in making Icelandic deposits, rules watchdog"
425:. Previous chairmen included Jeremy Newman, former chief executive of
808:
584:
275:
183:
995:"Just 1% of English councils published audited accounts by deadline"
27:
This article is about a United Kingdom agency. For other uses, see
1144:
Risk and return: English local authorities and the Icelandic banks
150:
Local government audit law has its origins in nineteenth century
113:
283:
504:
called for the commission to be scrapped, which led to what
297:, and the commission was formally closed on 31 March 2015.
1125:"'New way' thinker John Seddon aims at council targets"
331:
Institute of Chartered Accountants in England and Wales
243:
Secretary of State for Communities and Local Government
219:
Mr Magill found the former leader of the council, Dame
966:"Harbord: time for a rebirth of the Audit Commission?"
177:
The commission gained responsibility for auditing the
1355:
Ministry of Housing, Communities and Local Government
993:Michael Goodier; Patrick Butler (6 November 2023).
167:
National Health Service and Community Care Act 1990
108:
100:
92:
84:
72:
64:
56:
51:
1261:International Journal of Human Resource Management
912:"Private auditors predicted to 'cut costs by 40%'"
722:"Fresh controversy over 'homes for votes' scandal"
619:. Audit Commission. 16 July 2009. pp. 17–19.
1105:"Cut the Audit Commission, not public services"
378:Department for Communities and Local Government
161:The Audit Commission was established under the
1179:"Government watchdog invested £10m in Iceland"
423:Department of Communities and Local Government
444:Previous incumbents include Eugene Sullivan,
8:
784:"Porter pays £12.3m in homes for votes case"
341:Functions of the Audit Commission included:
34:
1345:Defunct public bodies of the United Kingdom
321:reported that ten public bodies (including
1054:"Only five local audits completed on time"
988:
986:
696:
694:
570:Her Majesty's Inspectorate of Constabulary
763:"Dame Shirley Porter back in Westminster"
887:"PwC slates FRC idea to create Big Five"
885:Christodoulou, Mario (22 October 2010).
608:
606:
604:
602:
600:
1325:House of Commons Library Briefing Paper
632:
630:
628:
626:
596:
580:Her Majesty's Inspectorate of Probation
295:Local Audit and Accountability Act 2014
1177:Mulholland, Hélène (16 October 2008).
550:National Audit Office (United Kingdom)
33:
575:Her Majesty's Inspectorate of Prisons
437:Controller of Audit / Chief Executive
197:Westminster Council 'homes-for-votes'
7:
1219:Beckford, Martin (3 November 2010).
682:"Annual Report and Accounts 2008/09"
614:"Annual Report and Accounts 2008/09"
515:2008–2011 Icelandic financial crisis
1288:Critical Perspectives on Accounting
824:"Fraud crackdown saves £215m in UK"
1198:Sparrow, Andrew (23 August 2010).
941:"Statutory arrangements for audit"
742:"Q&A: Dame Shirley's downfall"
25:
761:Weaver, Matthew (7 August 2006).
687:. Audit Commission. 16 July 2009.
638:"Audit Commission to be scrapped"
163:Local Government Finance Act 1982
29:Audit Commission (disambiguation)
1052:Kwame Boakye (10 October 2023).
910:Roxburgh, Helen (5 March 2012).
720:Weaver, Matt (8 February 2002).
40:
1146:Audit Commission. 23 March 2009
782:Millward, David (6 July 2004).
1350:Auditing in the United Kingdom
1248:Timmins, N.; Gash, T. (2014).
1156:Carvel, John (26 March 2009).
964:Richard Harbord (4 May 2023).
354:National Health Service trusts
253:and private accounting firms.
196:
1:
832:. 20 May 2010. Archived from
945:Local Government Association
665:England and Wales High Court
470:Financial Services Authority
356:and other local agencies in
46:Logo of the Audit Commission
1254:. Institute for Government.
848:"National Fraud Initiative"
804:"National Fraud Initiative"
350:local government in England
265:Financial Reporting Council
88:Protecting the public purse
1371:
1110:Local Government Chronicle
1059:Local Government Chronicle
521:In 2010, Eric Pickles and
500:Occupational psychologist
474:London School of Economics
417:Chairman and commissioners
251:Local Government Ombudsman
26:
484:Criticism and controversy
313:local government minister
228:National Fraud Initiative
191:Auditor General for Wales
39:
18:Audit Commission Act 1998
1320:Audit Commission website
1302:Local Government Studies
1229:. London. Archived from
866:"Landlords seek answers"
667:(Administrative Court),
76:1st Floor Millbank Tower
565:Care Quality Commission
241:On 13 August 2010, the
206:Homes for votes scandal
179:National Health Service
1086:Health Service Journal
323:Slough Borough Council
172:rate-capping rebellion
1274:Public Administration
1031:The Municipal Journal
703:Public Administration
325:, which had issued a
304:The Municipal Journal
132:statutory corporation
464:(later of the CBI),
386:Department of Health
1233:on 5 November 2010.
1226:The Daily Telegraph
1024:(30 October 2023).
210:Westminster Council
36:
1026:"Rebuilding audit"
327:Section 114 notice
874:. 20 August 2010.
478:Sir Andrew Foster
462:Sir Howard Davies
427:BDO International
288:Ernst & Young
269:Big Four auditors
124:
123:
16:(Redirected from
1362:
1340:Government audit
1309:
1296:
1281:
1268:
1255:
1235:
1234:
1216:
1210:
1209:
1195:
1189:
1188:
1174:
1168:
1167:
1153:
1147:
1141:
1135:
1134:
1121:
1115:
1114:
1103:(16 July 2009).
1097:
1091:
1090:
1077:
1071:
1070:
1068:
1066:
1049:
1043:
1042:
1040:
1038:
1018:
1012:
1011:
1009:
1007:
990:
981:
980:
978:
976:
961:
955:
954:
952:
951:
937:
931:
930:
928:
926:
907:
901:
900:
895:. Archived from
882:
876:
875:
862:
856:
855:
854:. 24 March 2015.
852:Audit Commission
844:
838:
837:
820:
814:
813:
800:
794:
793:
779:
773:
772:
758:
752:
751:
750:. 24 April 2004.
738:
732:
731:
717:
711:
710:
698:
689:
688:
686:
678:
672:
662:
656:
655:
653:
651:
646:. 13 August 2010
634:
621:
620:
618:
610:
491:Liberal Democrat
256:Accounting body
128:Audit Commission
120:
117:
115:
114:audit-commission
44:
37:
35:Audit Commission
21:
1370:
1369:
1365:
1364:
1363:
1361:
1360:
1359:
1330:
1329:
1316:
1299:
1284:
1271:
1267:(9): 1589–1607.
1258:
1247:
1244:
1242:Further reading
1239:
1238:
1218:
1217:
1213:
1197:
1196:
1192:
1176:
1175:
1171:
1155:
1154:
1150:
1142:
1138:
1133:. 31 July 2009.
1123:
1122:
1118:
1099:
1098:
1094:
1079:
1078:
1074:
1064:
1062:
1051:
1050:
1046:
1036:
1034:
1020:
1019:
1015:
1005:
1003:
992:
991:
984:
974:
972:
963:
962:
958:
949:
947:
939:
938:
934:
924:
922:
909:
908:
904:
892:Accountancy Age
884:
883:
879:
864:
863:
859:
846:
845:
841:
822:
821:
817:
802:
801:
797:
781:
780:
776:
760:
759:
755:
740:
739:
735:
719:
718:
714:
700:
699:
692:
684:
680:
679:
675:
663:
659:
649:
647:
636:
635:
624:
616:
612:
611:
598:
593:
546:
486:
466:Bank of England
439:
419:
414:
401:Inspectorates.
398:
339:
239:
230:
199:
148:
112:
104:£213m (2009-10)
80:London SW1P 4HQ
79:
77:
52:Agency overview
47:
32:
23:
22:
15:
12:
11:
5:
1368:
1366:
1358:
1357:
1352:
1347:
1342:
1332:
1331:
1328:
1327:
1322:
1315:
1314:External links
1312:
1311:
1310:
1297:
1282:
1269:
1256:
1243:
1240:
1237:
1236:
1211:
1190:
1169:
1148:
1136:
1116:
1092:
1089:. 2 July 2009.
1072:
1044:
1013:
982:
956:
932:
902:
899:on 2010-10-28.
877:
871:Inside Housing
857:
839:
836:on 2012-03-02.
815:
795:
774:
753:
733:
712:
690:
673:
657:
622:
595:
594:
592:
589:
588:
587:
582:
577:
572:
567:
562:
560:Audit Scotland
557:
552:
545:
542:
541:
540:
536:
519:
511:
498:
485:
482:
456:(later of the
438:
435:
418:
415:
413:
410:
397:
394:
374:
373:
367:
361:
338:
335:
280:Grant Thornton
238:
235:
229:
226:
221:Shirley Porter
203:gerrymandering
198:
195:
147:
144:
136:United Kingdom
122:
121:
110:
106:
105:
102:
98:
97:
94:
90:
89:
86:
82:
81:
74:
70:
69:
66:
62:
61:
58:
54:
53:
49:
48:
45:
24:
14:
13:
10:
9:
6:
4:
3:
2:
1367:
1356:
1353:
1351:
1348:
1346:
1343:
1341:
1338:
1337:
1335:
1326:
1323:
1321:
1318:
1317:
1313:
1307:
1303:
1298:
1294:
1290:
1289:
1283:
1280:(3): 459–476.
1279:
1275:
1270:
1266:
1262:
1257:
1253:
1252:
1246:
1245:
1241:
1232:
1228:
1227:
1222:
1215:
1212:
1207:
1206:
1201:
1194:
1191:
1186:
1185:
1180:
1173:
1170:
1165:
1164:
1159:
1152:
1149:
1145:
1140:
1137:
1132:
1131:
1126:
1120:
1117:
1112:
1111:
1106:
1102:
1096:
1093:
1088:
1087:
1082:
1076:
1073:
1061:
1060:
1055:
1048:
1045:
1033:
1032:
1027:
1023:
1017:
1014:
1002:
1001:
996:
989:
987:
983:
971:
967:
960:
957:
946:
942:
936:
933:
921:
917:
913:
906:
903:
898:
894:
893:
888:
881:
878:
873:
872:
867:
861:
858:
853:
849:
843:
840:
835:
831:
830:
825:
819:
816:
811:
810:
805:
799:
796:
791:
790:
789:The Telegraph
785:
778:
775:
770:
769:
764:
757:
754:
749:
748:
743:
737:
734:
729:
728:
723:
716:
713:
709:(3): 459–476.
708:
704:
697:
695:
691:
683:
677:
674:
670:
666:
661:
658:
645:
644:
639:
633:
631:
629:
627:
623:
615:
609:
607:
605:
603:
601:
597:
590:
586:
583:
581:
578:
576:
573:
571:
568:
566:
563:
561:
558:
556:
553:
551:
548:
547:
543:
537:
534:
533:
528:
524:
520:
516:
512:
509:
508:
503:
499:
496:
492:
488:
487:
483:
481:
479:
475:
471:
467:
463:
459:
455:
451:
447:
446:Steve Bundred
442:
436:
434:
432:
431:PA Consulting
428:
424:
416:
411:
409:
406:
402:
395:
393:
389:
387:
383:
379:
371:
370:Data-matching
368:
365:
362:
359:
355:
351:
347:
344:
343:
342:
336:
334:
332:
328:
324:
320:
319:
314:
310:
306:
305:
298:
296:
291:
289:
285:
281:
277:
272:
270:
266:
261:
259:
254:
252:
248:
244:
236:
234:
227:
225:
222:
217:
215:
211:
207:
204:
194:
192:
187:
185:
180:
175:
173:
168:
164:
159:
158:legislation.
157:
156:public health
153:
145:
143:
139:
137:
133:
129:
119:
111:
107:
103:
101:Annual budget
99:
95:
91:
87:
83:
75:
71:
68:31 March 2015
67:
63:
59:
55:
50:
43:
38:
30:
19:
1305:
1301:
1292:
1286:
1277:
1273:
1264:
1260:
1250:
1231:the original
1224:
1214:
1205:The Guardian
1203:
1193:
1184:The Guardian
1182:
1172:
1163:The Guardian
1161:
1151:
1139:
1128:
1119:
1108:
1101:Seddon, John
1095:
1084:
1075:
1063:. Retrieved
1057:
1047:
1035:. Retrieved
1029:
1016:
1004:. Retrieved
1000:The Guardian
998:
973:. Retrieved
969:
959:
948:. Retrieved
935:
923:. Retrieved
915:
905:
897:the original
890:
880:
869:
860:
851:
842:
834:the original
829:The Guardian
827:
818:
807:
798:
787:
777:
768:The Guardian
766:
756:
745:
736:
727:The Guardian
725:
715:
706:
702:
676:
660:
648:. Retrieved
641:
531:
505:
443:
440:
420:
407:
403:
399:
390:
375:
369:
363:
345:
340:
318:The Guardian
316:
302:
299:
292:
273:
262:
255:
247:Eric Pickles
240:
231:
218:
214:Conservative
200:
188:
176:
160:
149:
140:
127:
125:
73:Headquarters
60:1 April 1983
1308:(4): 17–43.
1295:(1): 39–62.
1065:23 December
1037:23 December
1006:23 December
975:23 December
555:Audit Wales
527:BBC Radio 4
502:John Seddon
495:Vince Cable
472:) and LSE (
454:John Banham
382:Home Office
1334:Categories
1022:Lee Rowley
950:2021-07-17
591:References
539:announced.
535:programme.
448:(later of
384:, and the
309:Lee Rowley
1130:The Times
650:13 August
523:Bob Neill
518:collapse.
507:The Times
412:Structure
93:Employees
65:Dissolved
970:Room 151
925:13 March
916:Economia
747:BBC News
643:BBC News
544:See also
364:Research
337:Function
152:Poor Law
78:Millbank
476:), and
468:, FSA (
452:), Sir
450:Monitor
396:Funding
358:England
237:Closure
146:History
134:in the
109:Website
809:gov.uk
585:Ofsted
380:, the
311:, the
276:Mazars
184:Ofsted
130:was a
57:Formed
920:ICAEW
685:(PDF)
617:(PDF)
532:Today
346:Audit
85:Motto
1067:2023
1039:2023
1008:2023
977:2023
927:2012
652:2010
286:and
284:KPMG
263:The
258:ACCA
201:The
154:and
126:The
116:.gov
529:'s
493:MP
460:),
458:CBI
208:at
118:.uk
96:180
1336::
1306:23
1304:.
1293:13
1291:.
1278:81
1276:.
1265:18
1263:.
1223:.
1202:.
1181:.
1160:.
1127:.
1107:.
1083:.
1056:.
1028:.
997:.
985:^
968:.
943:.
918:.
914:.
889:.
868:.
850:.
826:.
806:.
786:.
765:.
744:.
724:.
707:81
705:.
693:^
640:.
625:^
599:^
480:.
433:.
388:.
352:,
307:,
278:.
245:,
216:.
193:.
186:.
1208:.
1187:.
1166:.
1113:.
1069:.
1041:.
1010:.
979:.
953:.
929:.
812:.
792:.
771:.
730:.
654:.
31:.
20:)
Text is available under the Creative Commons Attribution-ShareAlike License. Additional terms may apply.
