THE UK’s spending watchdog has disclaimed the UK Government accounts for the first time ever.
In an exceptional statement, the National Audit Office (NAO) said on Tuesday that it could not approve the Whole of Government Accounts (WGA) 2022-23.
The WGA brings together all public sector assets and liabilities, including the accounts of over 10,000 public bodies such as central government departments, devolved governments, the NHS, academy schools and public corporations.
The NAO said that the reason it could not approve the account was “the severe backlogs in English local authority audits, with the consequence that there is inadequate assurance over material amounts throughout the WGA”.
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Comptroller and Auditor General Gareth Davies said he had been “unable to obtain sufficient, appropriate evidence upon which to form an opinion”.
The NAO said that just over 10% (43) of England’s 426 local authorities submitted reliable data to the WGA. Of the near 90% of local authorities that failed to submit reliable data, 46% (196) submitted information that hasn’t been audited, and 44% (187) did not submit any data at all.
Davies said: “It is clearly not acceptable that delays in audited accounts for English local authorities have made it impossible for me to provide assurance on the Whole of Government Accounts for 2022-23.
“It is essential that the steps being taken by government to restore timely and robust local authority audited accounts are effective.”
“It is deeply unsatisfactory that failures in the local authority audit market have meant that the Comptroller and Auditor General is unable to give any formal audit opinion on the accounts for the first time ever.
“If these issues are not addressed, it will become increasingly difficult to hold local leaders to account and more horror stories of failing councils will follow.
“The government should press forward with its plans to permanently resolve the local audit crisis. The Whole of Government Accounts must be made fit for purpose again.”
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