Overview of the local authority audits 2006 – 
podcast transcript

Anne:  This is Anne McCubbin here to talk with Gordon Smail and Gillian Gibb about or Overview of the local authority audits 2006 report.  Gordon, what’s this report about?

Gordon:  Thanks Anne, this is the annual report we draw together the findings from the year’s audits and this year we’re talking about 2006.  So we draw together the information that we have from the annual audits of accounts, from the Best Value audits we’ve carried out and also information from the Statutory Performance Indicators and national studies we’ve done really to form an overall picture as we see it through the audit work that we’ve done.

Anne:  So is this generally a good or a bad picture?

Gordon:  Our report’s saying that we’re seeing signs that services are improving but we’re also highlighting significant challenges facing councils in the short to medium term.  One of the most important things of course is the council elections coming up in May 2007 and we’ll likely see major changes as a result of the elections and we see possible risks that the pace of improvement seen in recent years.  Of course one of the other areas we’ve been highlighting in recent years, and that continues at the moment, are the financial pressures that councils are facing.  

Anne:  And Gillian, how can councils plan now for what happens after the elections?

Gillian:  Some councils have already been looking at possible outcomes after the elections and how business may change.  There’s going to be large numbers of new councillors and a change to multi-member wards.  Looking at the possible outcomes now may be helpful for councils depending on their local circumstances.  What councils need to do it pull together training and support programmes for new councillors to explain their role responsibilities and what’s expected of them.

Anne: Gordon, why have reserves and balances fallen so much?  Is this a major problem?  

Gordon:  Well as you know our previous reports have highlighted financial pressures and I think this year what we’re seeing is these pressures really beginning to bite with things like equal pay coming through in the accounts.  One consequence of that has been the reduction in reserves.  We’ve said before that reserve levels are for councils to determine taking account of local circumstances and that remains the case. The fact that all councils now have policies in place is a major step forward explaining why they’re holding reserves and what they’re intending to do with them.  

Anne:  So what can councils do to improve their situation?

Gordon:  Well we’ve highlighted a number of key areas in the report.  One of the things we’ve already talked about is the urgent requirement to consider arrangements for conducting business after the elections and Gillian highlighted one of the important points and that’s about having training and development ready for the newly elected councillors when they come into post early in May.  One of the other areas is, we need to see significant improvements in performance management arrangements particularly pointing to the need for better quality information about performance so that members in councils and officers in councils know how well services are performing and that’ll facilitate good scrutiny, ask challenging questions about how services are performing and how they can be improved.  And I think the third area is around the financial pressures.  These financial pressures are likely to continue, so what we’re really calling for is good long-term financial planning making closer links between financial plans and budgets and policies and procedures and overall taking a more strategic approach to resource management linking finances with workforce and also asset management.  So, a lot for councils to do but progress is being made.  

Anne:  And Gillian, how will the audits keep track of what’s going on in councils?

Gillian:  We’re constantly looking at the way we carry the audit and adapt the audit to changing circumstances to ensure that councils are getting most from it.  An important part of this is the work that we undertake with service inspectorates.

Anne: Gordon and Gillian, thanks very much.