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Comments from The Association of Chartered Certified Accountants
October 2002

ACCA welcomes the opportunity to comment on the orders proposed to be made under the Government Resources and Accounts Act 2000 which will have the effect of increasing the statutory powers of the Comptroller and Auditor General. These comments have been prepared in consultation with members of the ACCA's Public Sector Technical Committee, a group of experienced accountants working in the public sector.

We welcome the proposed orders which will implement the recommendations contained in the report from Lord Sharman relating to the statutory right of the Comptroller and Auditor General to:

• audit the accounts of all Non-Departmental Public Bodies (NDPBs) which are not companies
  and
• to have access to a range of bodies which receive significant public funds.

The Sharman Report also recommended that steps should be taken to remove the current obstacles to the Comptroller and Auditor General being the auditor for NDPBs which are also companies under the Companies Act. It is agreed that this may require amendment to the Companies Act. It is not clear what progress, if any, has been made on this issue on the 18 months since the Sharman report was issued.

ACCA agrees with Lord Sharman that, as a matter of principle, the Comptroller and Auditor General should be appointed as the auditor, on behalf of parliament, of all NDPBs. Thus we are disappointed that the Government has not agreed to the Comptroller and Auditor General being appointed the auditor for the following public sector organisations:

• the BBC
• the Post Office/ Consignia
  and
• the Financial Services Authority.

The consultation document only proposes to give the Comptroller and Auditor General access to a range of organisations which receive significant public funds for the purpose of his financial audit work and it is proposed that it will not apply to his value for money work. We believe that the Comptroller and Auditor General such also have access to such organisations for the purpose of undertaking value for money work in the public body providing funds.

It is not clear whether there are any bodies where the Comptroller and Auditor General is currently appointed by a minister or by the body itself rather than by statute. It would appear sensible for the proposed order to include any such bodies.

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