FINANCE

Two birds one stone on audit

The recommendation in the Redmond review to push back the accounts completion and audit dates is, in the view of Simone HInes, a backward step, 'a point the Society of District Council Treasurers made during the review process'.

There's no doubt the Redmond review is a thorough and in-depth study and pinpoints what we have known for some time – that the current audit system isn't working and needs to change. I still can't help feeling a little underwhelmed.

The recommendation to push back the accounts completion and audit dates is, in my view, a backward step, a point the Society of District Council Treasurers made during the review process.

Yes, the current timetable is ambitious and puts pressure on finance teams (especially for small finance teams in districts) but it means we can put them to bed early and crack on with more meaningful things – mainly the budget-setting process and vital projects such as town centre and housing schemes.

In districts it's the same key people closing the accounts who are also responsible for getting the budget-setting process under way in the summer, so dragging the accounts and audit process out until September is an unwanted distraction.

The real wasted opportunity from the review is streamlining of the accounts. The review found an almost unanimous view that the current statement of accounts are unfathomable to most readers, yet the only recommendation is to add another statement.

I partly understand the rationale behind this addition in helping readers interpret the difference between the complex statutory accounts and the actual financial position of the council, but adding a further statement is the wrong answer. It is even more work for finance teams and the need for the statement itself is further evidence that the current accounts are not fit for purpose.

Instead, a fundamental review of financial reporting in local government and what stakeholders are really interested in should be done. If we cracked this conundrum it might reduce the time needed to audit the accounts, so other issues around the timetable and fees may not be such a problem. Two birds, one stone.

Simone Hines is president of the Society of District Treasurers and executive director of resources at Nuneaton and Bedworth BC

FINANCE

Navigating change and supporting inclusive talent

By Amin Aziz | 14 November 2024

Amin Aziz and Zeynep Livatyali-Esen assess some of the largest challenges of recruitment within social care.

FINANCE

EXCLUSIVE: Council chiefs told settlement will be 19 December

By Dan Peters | 14 November 2024

Council chiefs have been told by Whitehall officials they may have to wait until less than a week before Christmas to receive the finance settlement, The MJ ...

FINANCE

The golden thread linking local priorities

By Louis Coiffant-Gunn | 13 November 2024

Louis Coiffait-Gunn says libraries have evolved to meet the needs of their communities, and the services they offer go much deeper than providing a building ...

FINANCE

Changing the curve

By Matthew Taylor | 13 November 2024

Matthew Taylor explains why nothing less than a ‘fundamental system redesign’ via integration is required to ease pressure on health and social care.

Popular articles by Simone Hines