Examination of Witnesses (Questions 36
- 39)
TUESDAY 25 JANUARY 2000
MS INES
NEWMAN AND
MR DAVID
SPENCER
Chairman
36. Could I welcome you to the second session
this morning. Could I ask you to identify yourselves to the Committee.
(Ms Newman) My name is Ines Newman. I am Head of Policy
at the LGIU; and David Spencer is Policy Officer at the LGIU who
has been leading on our Best Value inspection issues. We are an
organisation of over 150 local authorities and the local authority
trade unions, and we are an independent research organisation.
Mr Olner
37. My first question to you is the same question
I asked Mr Davis earlier, where the Audit Commission appoints
and oversees auditors of local authorities and National Health
Services bodies, and they appoint them to carry out national Value
For Money studies and, from this year, will be inspecting Best
Value in local authorities. What do you see as the Audit Commission's
main role?
(Mr Spencer) I think their role in appointing auditors
is clearly going to continue. That will be a primary function
for the Commission. The big role and a big developing role will
be in the inspection role within Best Value. I think that opens
up the question of whether, with the number of roles they have,
there is any conflict between them. One of things which I think
is valued currently with the work of the Commission is its statutory
independence from central government and from local government.
38. Is there any percentage difference in the
edge that gives the Audit Commission on looking at financial probity
within the organisations and the setting of standards in the organisations?
Does one outweigh the other or are they both pretty much the same,
do you think?
(Mr Spencer) I think there is a jump to be made from
the financial audit to the kind of qualitative auditing and the
qualitative inspection that their role within Best Value entails.
It is moving from the tick-box approach to what you might call
a "touchy-feely" approach to get at the less number-crunching
issues.
39. If you are going to put Best Value figures
on the work the Audit Commission does and the work that other
private external auditors do, how do you rate that?
(Mr Spencer) I would not know the answer to that.
I would have to guess.
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