TENTH REPORT
The Environment, Transport and Regional Affairs
Committee has agreed to the following Report:—
AUDIT COMMISSION
INTRODUCTION
1. The Audit Commission for England and Wales was
created by the Local Government Finance Act 1982 to appoint auditors
to local authorities, set audit fee rates and carry out studies
into their economy, efficiency and effectiveness. Its role was
extended in 1990 to include local National Health Service bodies.
The Commission plays a key role in ensuring regularity, probity
and value for money in public expenditure, and high standards
in public life. It is therefore vital that the public have confidence
in the Audit Commission's independence and integrity.
2. Neither this Committee nor its predecessor has
inquired into the work of the Audit Commission. Moreover, since
the Local Government Act 1999 expands its remit significantly
to include the inspection of local authorities' new duty of Best
Value, this seemed a particularly appropriate time to examine
the organisation. We called for evidence addressing the work of
the Audit Commission.[9]
3. While we are acutely aware of the important work
that the Commission carries out in respect of health bodies, our
inquiry dealt primarily with the Audit Commission's role in relation
to local authorities. This reflects our locus as the Select
Committee scrutinising the Department of the Environment, Transport
and the Regions. However, many of our recommendations will be
equally applicable to the audits of the health service.
4. In response to our invitation to submit evidence,
we received 32 written memoranda from a range of interested parties
and took evidence from 14 organisations and two individuals over
four sessions. The written evidence was published before the oral
evidence sessions as House of Commons paper HC174-II (Session
1999-2000). We appointed Mary Bowerman and Tony Redmond as specialist
advisers and are grateful for their advice and assistance. In
our Report we shall look first at the remit of the Audit Commission;
then at aspects of its existing role; followed by an examination
of its role in Best Value. Finally we consider a number of related
issues before presenting our conclusions and recommendations.
9 Environment, Transport and Regional Affairs
Committee Press Notice No 60, Session 1998-99 Back
| 
