It looks like the Audit Commission (AC) will be ending by 2012. An announcement ‘out of the blue’ it was a shock to say the least. We knew it had to be downsized, but not abolished. While I can’t say the Audit Commission has been my favourite employer I can’t deny all the good they have done.
It does seem that this decision is political, common sense dictates that you need an independent body to audit something as crucial as our councils. Putting aside the independence of the organisation, the Audit Commission save the tax payers money by simply doing what it does best – Audit.
The firms charge more for doing the same work the AC does. The Audit Commission cannot make profits. Any ‘extra’ money is given back to audited body in the form of rebates or free services. The firms charge more now, what do you think they will charge when they don’t have to keep their prices down to compete with the Audit Commission?
The research side of the Audit Commission has also been important in our civic life. The AC highlighted the problems in Doncaster which resulted in action being taken on the failing council. Will the firms do the same thing? Who is going to keep a watch to make sure scandals such as Doncaster and Baby P don’t happen again or at least are minimised?
This organisation existed as the District Auditors first before becoming the Audit Commission. It has a proud history and I am proud to have worked in such a place. It takes a brave government to remove the safeguards the Audit Commission provides. Once disbanded it cannot be reinstated. All the skills and experience will be lost but it might be a couple of years, a few scandals and increased auditing costs for the councils before the powers that be realise their mistake.
Update:
I’ve just watched the news and was just flabbergasted by the champagne lifestyle comment. As the Librarian, the tasks I do and the responsibility I hold in most other organisations in Bristol (where I work) I would be paid more (that’s not even London!). This includes private firms and public organisations.
The saving of £50 million is a little spurious as well. Coincidentally that sum was the expenses published on the internet. The Audit Commission doesn’t actually get that much from CLG. Most of the income is earned by Auditors in the line of their work, therefore this will be MORE when the firms take over. Also the expenses were from last year when we were doing CAA work. This was abolished. The costs of the Audit Commission would have gone down dramatically this year as a result. Also rules were implemented this year that meant travel was restricted, the higher echelons were not allowed to go first class anymore, catering below certain numbers was restricted to external meetings (Bristol was not allowed this anyway) and meetings were conducted by VC.
In library terms we were changing suppliers and cancelling journal subscriptions. Our stock is held by an external company so we use less floor space in our offices. I would say the Audit Commission has one of the most cost effective libraries in the country. (Not backed up by any research)
Effectively we practice what we preached. We strive to be unbiased and professional and the best the country has to offer. I get the feeling the government doesn’t actually know what the Audit Commission does…