LG 2 - Auditor General for Wales

Annex

The Auditor General’s role in the current Welsh Programme for Improvement, with reference to existing powers and duties

In summary, the Auditor General:

-inspects best value authorities’ compliance with the requirements of best value under section 10A of the Local Government Act 1999 so as to provide support for service improvement;

-co-ordinates his inspection work with the improvement plan audits done by the auditors that he appoints and the work of other inspectors, such as Estyn (in line with Assembly Government guidance—Circular 28/2005¹—and in accordance with the 1999 Act);

He also supports improvement by undertaking national studies under his powers under the Public Audit (Wales) Act 2004 (chiefly section 41), so as to complement his inspection work.

Section 7 of the 1999 Act and related guidance require the auditors appointed by the Auditor General to audit each best value authority’s Improvement Plan for each financial year. This involves testing whether the improvement plans have been prepared and published in accordance with 1999 Act and Circular 28/2005. It also involves testing the Performance Indicator and Performance Measurement information produced by authorities. Auditors compare the results of such work between years. They must also consider whether to recommend to the Auditor General that he undertakes an inspection under section 10A of the 1999 Act.

The Auditor General undertakes inspections of best value authorities’ compliance with best value guided by “Joint Risk Assessments” done in accordance with Circular 28/2005 by his staff, his appointed auditors, other inspectors and the authorities. He also undertakes inspections at his own discretion, where recommended to by one of his appointed auditors or if directed to by the Welsh Ministers. The Auditor General is required by the 1999 Act to issue a report where he has carried out an inspection of an authority, and may publish such reports. He also summarises the results of the audit and inspection work for each authority in an annual letter, and provides these to the authorities and the Welsh Ministers.

The Relationship Managers assigned to each authority by the Auditor General in accordance with Circular 28/2005 co-ordinate the audit and inspection work. This involves producing a ‘regulatory calendar’ covering the work of the appointed auditor, Estyn, CSSIW and the Auditor General. It also involves observing advisory groups established in the authorities. The Auditor General also helps co-ordinate work by providing annual Implementation Guidance to appointed auditors, Estyn and CSSIW. He also sends WAO staff to attend the Wales Improvement Board and its Information and Performance sub-groups, WLGA networks and other relevant groups.  

The Auditor General has prepared a code of practice (under section 8A of the 1999 Act) prescribing how auditors and inspectors carry out their functions. His staff use this as the basis for checking the quality of audit and inspection work. For funding the work, the Auditor General is required to consult on and prescribe a scale of fees for authorities in respect of the improvement plan audits and his inspections. The Welsh Ministers also provide funding for other activities, such as co-ordination work and specific improvement studies under the Public Audit (Wales) Act.

¹Welsh Assembly Government | Wales Programme for Improvement - Guidance for Local Authorities 2005: Circular 28/2005