The National Association of Local Councils (NALC) has welcomed the release of the first annual report by the Smaller Authorities' Audit Appointment (SAAA). As a founding body of the SAAA, NALC applauds the report for its clear mission to establish an effective and sustainable audit regime, enabling communities to hold their local (parish and town) councils accountable.
The report outlines a straightforward strategic plan that focuses on key areas such as market development, supporting practitioners, and improving limited assurance review processes. This plan is seen as a vital step toward enhancing the transparency and accountability of local councils and ensuring that they operate under robust and efficient audit practices.
In addition to celebrating the SAAA's progress, NALC has also expressed its strong approval of the government’s recent announcement addressing the backlog of unaudited accounts in principal councils. This proactive move aims to put local audits on a sustainable footing, resolving a significant issue that has affected the timely review of local authority finances.
The announcement presents an opportunity for NALC to advocate for several vital improvements in the local audit framework. Among these is the collaboration with SAAA to urge the government to reconsider the £6.5 million threshold, which currently triggers a more costly and onerous audit regime for larger councils. NALC hopes that by addressing this threshold, the audit process will become more equitable and manageable for councils of varying sizes.
NALC remains steadfast in its commitment to supporting local councils and practitioners in navigating the audit process, ensuring that local governance remains transparent, accountable, and effective.