CIPFA and ICAEW respond to Written Ministerial Statement on the future of public sector audit

The Chartered Institute for Public Finance and Accountancy (CIPFA) and ICAEW have announced that they ‘welcome’ the first steps taken by the Government to give a clear timeline for improving the system and need for timely and effective public sector audit. In its Written Ministerial Statement, the Government sets new backstop dates for audits from December 2024 up to and including financial year 2027/28.

The work led by system partners the Ministry for Housing, Communities and Local Government (MHCLG), the Financial Reporting Council (FRC), the National Audit Office (NAO) and CIPFA is vital for both preparers and auditors. This timeline provides the framework for tackling the backlog of accounts and ensuring accountability and good governance for all stakeholders and our communities in the future via our audited public sector accounts.

Commenting on this, CIPFA chief executive, Owen Mapley, said: “This is an important step to address the backlog and re-establish timely financial reporting and audit in England. CIPFA remains committed to supporting work taking place across the local audit system and calls on all public finance professionals to continue the work they are doing to provide transparency and accountability through their accounts to the communities they serve.”

ICAEW chief executive, Alan Vallance, added: “Restoring timely reporting is critical to restoring financial accountability to the local government sector in England. The current delays in publishing financial statements have led to unacceptably low levels of accountability of some local authorities. By setting backstop dates there is a reset of the audits of financial statements, which is an important step to restoring credibility and preventing backlogs recurring in the future.”