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Comments from the Association of Chartered Certified Accountants
June 2001

The Association of Chartered Certified Accountants (ACCA) is pleased to have been invited to comment on the proposed amendments to the local government regulations. The draft regulations have been considered by ACCA's Public Sector Technical Issues Committee. The Committee's members are professional Chartered Certified Accountants with considerable experience of public sector auditing and accounting practice.

ACCA supports the amendments which are necessary to reflect new accounting requirements and to accommodate certain bodies within local government. We do not support the Audit Commission's recommendation to raise the threshold for accruals accounts on accountability grounds, although, we accept that such a change would reduce the administrative burden placed on small local councils.

ACCA fully supports the proposal to publish the annual audit letter. We believe that by publicising the letter it will not only help to enhance openness and accountability, but the exercise could be used also to promote "best value" in local government administration by facilitating the "bench marking" process.

Indeed ACCA recommended the publication of the annual audit letter in a recent submission to the Audit Commission. Our recommendation was based on the findings of a research study, which we commissioned in this area and which was forwarded to the Commission. We acknowledge that auditors must ensure that confidential business matters are not divulged to the public through the annual audit letter.

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