Supplementary written evidence submitted
by the Department for Communities and Local Government
ARRANGEMENTS FOR
SMALLER BODIES
When I gave evidence to the Select Committee on 4
April I discussed the proposed arrangements for smaller bodies,
those with income or expenditure not more than £6.5 million.
David Heyes asked me to provide a breakdown of expenditure within
the different levels for those bodies up to the proposed threshold,
and I said that I would write back with the figures we have available.
We do not hold this information for those bodies
up to £1 million as those figures are not routinely collected.
However, the estimated Gross Revenue Expenditure for those bodies
between £1 million to £6.5 million in 2010-11 is £165
million. I should clarify, though, that our proposals would not
move any further public money outside of the requirement to have
a full audit; smaller local public bodies are currently subject
to limited assurance, rather than full audit, and the threshold
for this has recently been increased to £6.5 million, bringing
a further 100 bodies within that regime. The independent examination
we propose will, of course, provide assurance that the accounts
of the bodies involved continue to be reviewed by an independent
person.
As you know, both the companies and charities sectors
have arrangements in place to ensure a more proportionate level
of audit for smaller bodies. We remain keen to ensure that smaller
local public bodies will not be disproportionately affected by
our proposals, which are discussed in our consultation document
on the future of local audit. I look forward to considering the
responses we receive.
Grant Shapps MP
Minister for Housing and Local Government
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