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Public sector explainers: Important stakeholders across the public sector and how they promote effective financial management

Contents
  • A
  • B
  • C
  • D
  • E
  • F
  • G
  • H
  • I
  • J
  • K
  • L
  • M
  • N
  • O
  • P
  • Q
  • R
  • S
  • T
  • U
  • V
  • W
  • X-Z
  • #

There are various organisations which play a role in promoting effective financial reporting and ensuring value for money of taxpayer’s money across the public sector. This page aims to highlight some of the key entities and concisely explain their role.

A

  • Audit Scotland
    Audit Scotland are Scotland’s national public sector audit agency, who undertake financial and performance audits on Scottish public bodies. They support the Auditor General for Scotland, Stephen Boyle, and the Scottish Accounts Commission, in delivering their work programmes, with Audit Scotland being responsible for undertaking approximately two-thirds of the annual audits of public bodies in Scotland.
  • Audit Wales
    Audit Wales is the collective operational term for the Wales Audit Office and the Auditor General for Wales, Adrian Crompton. The Auditor General for Wales is the statutory auditor of Welsh public bodies, including local councils, police and fire authorities, and the Welsh Government, with the Wales Audit Office performing the audit work on his behalf. The Auditor General for Wales also publishes reports on how Welsh public bodies spend and manage public money, including how they achieve value for money.

C

  • Chartered Institute of Public Finance and Accountancy (CIPFA)
    CIPFA are the world’s only professional body specialising in public services, with over 14,000 members working across the public sector in local government, accountancy firms and in national audit agencies.
  • CIPFA LASAAC Local Authority Code Board (CIPFA LASAAC)
    CIPFA LASAAC are responsible for preparing, developing and issuing the Code of Practice on Local Authority Accounting for the United Kingdom – the Code. A partnership between CIPFA and the Local Authority (Scotland) Accounts Advisory Committee (LASAAC), the Code is based on International Financial Reporting Standards (IFRS) and applies to local authorities, police and fire authorities, and other local bodies across the United Kingdom.

F

  • Financial Reporting Advisory Board (FRAB)
    FRAB are responsible for ensuring that government financial reporting meets the best possible standards. As such, HMT regularly consult with FRAB on financial reporting matters, as well as consulting on any proposed changes to the FReM and best practice.
  • Financial Reporting Council (FRC)
    The FRC are responsible for developing and maintaining auditing standards in the UK that central and local government audit engagements must follow. The FRC also have a statutory responsibility for monitoring the quality of major local audits in England, which includes large health and local government bodies, and they produce an annual report highlighting their inspection findings.

H

  • HM Treasury (HMT) and the Government Financial Reporting Manual (FReM)
    HMT are responsible for issuing the FReM on an annual basis. The FReM is the technical accounting guide for the preparation of financial statements by all entities and accounts which are prepared on an accruals basis and consolidated within the Whole of Government Accounts. Mostly applying within central government, it does not apply to local government entities .
  • HM Treasury (HMT) and the Whole of Government Accounts (WGA)
    The WGA consolidates more than 10,000 public sector entities which exercise functions of a public nature or are substantially funded by public money, into one set of financial statements published annually. As such, it includes central government departments and non-departmental public bodies, public corporations, local authorities, the NHS, and devolved administrations. HMT are responsible for preparing the WGA in accordance with the Government Resources and Accounts Act 2000, with individual organisations responsible for submitting their WGA returns to HMT.

I

  • Institute for Chartered Accountants in England and Wales (ICAEW)
    ICAEW are the only recognised supervisory body for local audit in England, being responsible for the licensing, registering, and monitoring of bodies who wish to carry out audits of local public bodies. Local audits must be completed by a registered local auditor and audit opinions must be signed by a Key Audit Partner under the Local Audit and Accountability Act 2014. ICAEW also monitor all firms authorised to carry out local audits, with active firms receiving a review at least once every three years.

L

  • Local Government Association (LGA)
    The LGA represent the interests of local authorities in England and Wales. They work with, and support councils, with the aim of improving local government.

M

  • Ministry of Housing, Communities and Local Government (MHCLG)
    MHCLG are the government department responsible for local government. As such, they provide funding to local authorities in England on behalf of government through the Local Government Finance Settlement, with local government finance in Scotland, Wales and Northern Ireland being devolved. They are also the system leader for local audit and are responsible for overseeing government’s strategy for overhauling the local audit system in England, including the commitment to establish a Local Audit Office.

N

  • National Audit Office (NAO)
    The NAO are the UK’s independent public spending watchdog, supporting parliament in holding government to account. Led by the C&AG, Gareth Davies, as an officer of the House of Commons he has the authority to audit and report on the financial accounts of government departments and other public bodies, providing an independent audit opinion for around 400 accounts each year. The NAO also report on the value for money of how public money has been spent by government, with around 60 such reports published per year.
  • Northern Ireland Audit Office (NIAO)
    The NIAO are the statutory auditor of central government in Northern Ireland, including Departments, non-departmental public bodies, NHS bodies and most government companies. NIAO staff also undertake the audits of local government entities, as designated by the Department for Communities as the Local Government Auditor. Led by the C&AG for Northern Ireland, Dorinnia Carville, results of their work are reported to the Northern Ireland assembly.

P

  • Public Sector Audit Appointments (PSAA)
    The PSAA, under the provisions of the Local Audit and Accountability Act 2014 and the Local Audit (Appointing Person) Regulations 2015, are responsible for the appointment of auditors and the setting of fees for relevant local authorities in England who have chosen to not appoint their own auditors themselves.