Local auditors gave opinions on only 12 per cent of local government bodies’ 2021/22 financial statements by the statutory deadline, according to a report from the National Audit Office.
That compares with just 9 per cent the previous year (2020/21) – but 45 per cent in 2019/20 and 97 per cent in 2015/16.
The report says delays in completing audited accounts can have significant implications for local accountability and the effective management of public money, with high-quality local auditing essential for public trust in how taxpayers’ money is spent.
Factors contributing to audit delays include a lack of qualified and experienced staff in both councils and audit firms, and the increasingly complex and commercial activities undertaken by councils.
Cllr Pete Marland, Chair of the LGA’s Resources Board, said: “Effective external audit and clear and transparent financial reporting are vital, and councils take them extremely seriously.
“However, as this report makes clear, local audit is in crisis, which is a serious concern for councils.
“While it acknowledges some actions have been taken to address this, we support the call for the Government to set out a detailed timetable by which it expects to restore timely audited accounts.
“The report also highlights the wider impact the crisis in local audit is having elsewhere in the public audit system, which reinforces the need for long-term and permanent solutions to address these challenges.”