Written evidence from Oxfordshire County
Council
At Oxfordshire County Council we believe we developed
a good working relationship with the Audit Commission and welcomed
their professional support; however, being subjected to an annual
inspection through the CAA and Use of Resources process was increasingly
a drain on officer time, with little benefit derived from the
exercise.
The duplication in the inspection and reporting regime
was frustrating; for example, we welcomed the requirement for
preparing an Annual Governance Statement and Statement on Internal
Control, and developed in the view of the external auditors, a
very strong and robust process for preparing a fair and transparent
statement; yet we were still required annually to demonstrate
performance against the Use of Resources Key Lines of Enquiry.
It was only in the last reported year of Use of Resources that
the focus moved away from processes to outcomes, which although
should have made the inspection easier, did not appear to result
in any reduction in auditor days, or fees. It actually increased
the officer time having to collate and present the evidence in
a format that was acceptable for the external reviewers, often
evidence of good outcomes that the Council was already reporting
to our communities through our communication streams, and by other
external inspections.
We strongly believe in demonstrating accountability
and value for money to the electorate, but feel the most efficient
and cost effective way is through self regulation by maintaining
strong and effective corporate governance, overseen by the Audit
Committee, and Scrutiny Committees. The Annual Governance Statement
and Statement on Internal Control are the mechanisms for reporting
this, but we strongly endorse the added assurance that should
be derived from the External Auditors reviewing the statements
and the process by which it is compiled as part of their annual
audit of the Statement of Accounts.
We believe the real test for local government is
in the ballot box, and that the local government financing system
and financial governance framework should enable local government
to become the servant of its local taxpayers and less the agent
of central government. We support the principle enshrined in the
Localities Bill and believe that we are best placed to appoint
locally our external auditors, through competitive tender, rather
than the existing arrangement of having the very little real influence
on their appointment or charges.
February 2011
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