Local Service Delivery and the challenges that the NAO faces
GENERAL NOTES:
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Big Society idea – power from Whitehall to local communities
Active involvement in determining the services provided
Transparency
Decentralisation, devolution
Local decisions made by those elected by local communities to make sure that resources are
better targeted to local areas neeeds
AUDIT COMMISSION ABOLITION:
 Gap left by AC in terms of VFM work in particular
 Our current role is unknown
 We shall be setting an audit code of practice (similar to that which Monitor have with FT
auditors)
Challenges:
 What if there are gaps or weaknesses in the framework, are we held responsible? Not doing
quality etc but will be seen as responsible?
 Risk that we will have an obligation to act, an expectation from PAC or the public?
 Financial audit – regularity opinion, assurances gained by AC, what now?
Leadership qualities needed:
 Integrated thinking of the impacts of forming new framework
 Building confidence
UNDERSTANDING LOCAL GOVERNMENT:
 Our remit will be larger and so many more relationships to develop
 Understanding how departmental frameworks and policy feeds down to local delivery –
understanding local government
 More stakeholders to include
 New area for NAO – reputationally could affect us
 Need knowledge of local government, hence recruitment of recent AAG and setting up a
specific team directed by Angela Hands
 Presents an opportunity to be well informed baout local government
Challenges:
 New networking
 New expertise needed
 Reputational damage if we don’t do well
Leadership qualities needed:
 Building confidence
 Creating understanding and trust
 Developing people
ACCOUNTABILITY LINES AND INFORMATION FLOWS:
 Lines of accountability are going to be longer and not so clear
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Where does central and local delivery stop?
Makes it harder from a VFM point of view as to is held accountable – already concerns
raised by PAC in their accountability report about the need to maintain departmental
responsibility – accounting officers shall still remain personally responsible to gain
assurances on the way that funds which are voted on are spent
From a financial point of view, the departments shall need to be geared up with information
flows to be able to hold local authorities responsible and gain the information it needs to
manage public funds properly. Attitude tends tpo be out the door and forget about it, but
now departments will need to better manage funds handled outside their departmental
walls
Challenges:
 Holding departments to account
 Opportunities – to influence and impact on clients , well positioned with our strategic
themes to add value by helping inform government, financial management and cost
effective delivery
Leadership qualities needed:
 Crossorganisational team working
EXPECTATIONS:
 PAC – more influence to shape government and so we will be expected to help shape their
new regime
 Public – may see us as regulators and therefore may turn to us with issues which they
consider need addressing. If no AC then when will these fall, public involved in decision
making – what if they choose the wrong choice?
 Departments – may see it as money out the door and who cares, may want us to help shape
them, provide guidance on financial management
 Local authorities – guidance on preparing accounts, auditors – ensuring similar reporting
 Need to manage expectations well so that we maintain confidence and avoid criticism