Supplementary written evidence submitted
by the Audit Commission
RESPONSE TO THE CLG SELECT COMMITTEE'S REQUEST
FOR COST AND ACTIVITY INFORMATION
The cost of the Commission to audited and inspected
bodies, and government, is shown by main activity in Table 1.
A more detailed breakdown of the audit income for principal bodies
is in Table 2
The Commission manages its various lines of business
in an integrated way, so income and expenditure do not map directly.
In particular, fees for audits (other than foundation trusts)
were levied under section 7 of the Audit Commission Act 1998.
This is subject to schedule 1, paragraph 8 of the Act, which requires
the Commission to set fees to cover its full costs. So in addition
to the costs of providing the audit, these fees therefore covered
the direct expenditure on its corporate functions.
Broadly, fees and grants for inspection, assessment,
foundation trust audit and advice and assistance covered the full
costs of providing the services.
Information on the 2010-11 forecast and 2011-12 budget
is included for comparison. 2010-11 was a transition year; CAA
was cancelled and inspection and studies run down during the year.
These and other costs reduced as staff left.
The figures in Table 1 also covered the following
direct costs:
| 2009-10 | 2010-11
| 2011-12 |
| Audit regulation | £3m
| £3m | £3m |
| Studies and research | £5m
| £4m | £2m |
| Government and stakeholder engagement, policy and analysis
| £13m | £10m | £5m
|
| Governance | £2m | £1m
| £1m |
The Commission has reduced its support and overhead costs from
£48 million in 2009-10 to £23 million in 2011-12.
Table 1
COSTS TO AUDITED AND INSPECTED BODIES AND GOVERNMENT (FEES
AND GRANTS)
| Category | Activity
| Number of
bodies in
2009-10
| 2009-10
£m | 2010-11
forecast
£m
| 2011-12
budget
£m |
| Audit | Local government code audit
| 457 bodies | 80 | 80
| 74 |
| Grant claim certification
| 2,856 claims or returns | 21
| 17 | 16 |
| NHS code audit | 289 bodies
| 54 | 48 | 41 |
| Payment by results audit
| 152 bodies | 5 | 5
| 5 |
| Foundation Trust audit |
55 bodies | 3 | 3
| 3 |
| Police and probation code audit
| 76 bodies | 5 | 5
| 5 |
| Small body audit and assurance
| 9,800 bodies | 4 | 4
| 4 |
| Inspection and assessment | Comprehensive Area Assessment
| 152 area assessments and 402 organisational assessments
| 30 | 11 | 0 |
| Inspection (housing, police, fire, benefits and other local authority)
| 67 inspections | 5 | 3
| 0 |
| Other | Advice and assistance
| Not applicable | 2 | 2
| 4 |
| National Fraud Initiative
| 1,300 bodies | 2 | 2
| 2 |
| Miscellaneous | Not applicable
| 2 | 1 | 1 |
| Total | |
| 213 | 181 |
155 |
Table 2
AVERAGE FEES PAID—2009-10 FINANCIAL YEAR
| Type of Body | No. of
Main
Audits
| Total Fee
£'000 | Average
£'000
| Comments |
| Local Government Code Audit |
| | |
|
| London Borough Council | 32 |
12,784 | 400 | |
| Metropolitan District Council | 36
| 12,126 | 337 |
|
| County Council | 27 | 8,648
| 320 | |
| District Council | 201 | 25,004
| 124 | |
| Unitary Authority | 54 | 15,294
| 283 | |
| Fire & Civil Defence Authority | 30
| 2,425 | 81 |
|
| Waste Disposal & Regulation Authority |
6 | 282 | 47 |
|
| Pension Fund Authorities | 2
| 207 | 104 |
|
| Parish Council | 42 | 658
| 16 | |
| National Parks | 8 | 145
| 18 | |
| Transport Authority | 11 |
846 | 77 | |
| Local Government Miscellaneous | 8
| 639 | 80 |
|
| Pension Fund + Other | |
942 | | |
| Total Major LG Bodies | 457
| 80,000 | 175 |
Vfm average proportion 34%* |
| | | |
| |
| Police and Probation Code Audit |
| | |
|
| Police Authority | 38 | 4,268
| 112 | |
| Probation | 38 | 1,132
| 30 | |
| Total Major Criminal Justice Bodies |
76 | 5,400 | 71
| Vfm average proportion 33%* |
| | | |
| |
| NHS Code Audit | |
| | |
| Acute NHS Trusts | 91 | 14,870
| 163 | |
| PCT | 152 | 30,929
| 203 | |
| Ambulance NHS Trusts | 10 |
1,445 | 145 | |
| Mental Health | 19 | 2,850
| 150 | |
| Special Trustees | 7 | 105
| 15 | |
| Strategic Health Authorities | 10
| 2,040 | 204 |
|
| Special Health Authorities + Charities + Other
| | 1,761 | |
|
| | |
| |
Total Major NHS Bodies subject to
Code audit
| 289 | 54,000 |
187 | Vfm average proportion 37%*
|
*This figure varies by type of body with a range in LG of 33%
to 37% with smaller bodies have slightly reduced proportion, and
in the NHS 21%-44%. The actual will vary according to auditors'
professional assessment of the risks relating to their VFM conclusion
and because of different firms' approaches to allocating the costs
they incur in relation to audit planning, review and reporting.
|
