A ‘system reset’ of local audit has been proposed by the Government to tackle the backlog of unaudited accounts dating back up to seven years.
Local Government Minister Lee Rowley told MPs that statutory deadlines would be announced in the autumn, with ongoing talks with local government and the audit sector due to be concluded in the summer.
He told the Levelling Up, Housing and Communities Committee that it was “possible that there will be qualifications and disclaimers that are required for earlier accounts that haven’t been signed off”.
Mr Rowley also said missed deadlines were a “symptom rather than a cause” and that he wanted to focus on the cause.
In response, LGA Resources Board Chair Cllr Pete Marland said councils shared the commitment and resolve to tackling the backlog, and wanted to return to a timely delivery of published audited accounts.
He said: “It also needs to be recognised that this will be a lengthy process and that the steps outlined will mean significant progress on the backlog itself is unlikely before 2024.
“We therefore renew our call on government to set out a detailed timetable by which it expects to restore timely audited accounts.”
Cllr Marland said ensuring the measures succeed will require compromise by all parties, including by councils who may need to have older accounts qualified or disclaimed in order for audit efforts to be concentrated on more recent years.