Audit Commission commends council for reporting of Crookall issues

Public services watchdog the Audit Commission has reported to Herefordshire Council that it was 'happy' that 'a full and independent investigation had taken place' following the council's discovery of problems in procurement in its ICT division in the summer of last year.

Speaking at the council's audit and corporate governance meeting last week (Friday 29 February 2008), the commission presented its annual audit letter - which summarises its assessment of the council and draws on independent audit work and inspection over a 12-month period.

The commission reports it is satisfied that the investigation - the independent Crookall Review - was thorough and said: 'The council has been commendably open and transparent in their reporting of the investigation'. It added 'the council has also taken the report very seriously and is starting to respond robustly' and all recommendations are being integrated into one action plan.'

There was 'no evidence' to suggest the ICT problem was more widespread and the commission's work, and that of the council's internal audit' suggests it is not. Neither was there any evidence to suggest fraud or corruption. Due to the 'thoroughness, independence and openness' of the external investigation, the Audit Commission has 'concluded there is no merit in a further investigation'.

Importantly, the Audit Commission has also passed an unqualified audit opinion of the council's accounts, which it assessed as 'good and timely'. The council's overall financial position was sound and showed that expenditure came in at £2.5 million below budget for the financial year ending March 2007. The council's performance on providing value for money has been adequate and needs to be managed in a consistent way across the authority, but most of the council's services are provided at relatively low cost, and there has been good progress at taking further costs out and improving performance.

The council's audit committee was praised for its advances over the last twelve months and is now operating as well as any to be found in local government.

The audit committee also heard that the Audit Commission considers that there is a 'clear shared vision' for how the new public services partnership with the primary care trust will deliver the benefits that local people need and want. The commission reports that the new joint leadership of the council and the primary care trust is necessary to drive change. Both organisations have demonstrated 'good community leadership', said the commission, and are managing defined risks as well as quantifying how joint working will deliver value for money.