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13 February 2001
GOVERNMENT WELCOMES PUBLICATION OF LORD SHARMAN’S REVIEW OF AUDIT AND ACCOUNTABILITY IN THE 21ST CENTURY
The publication today of Lord Sharman’s review of audit and accountability in central Government was welcomed by the Chief Secretary, Andrew Smith.
He commented:
"I am grateful to Lord Sharman for his Review of this important and complex area, and for conducting it so speedily.
"The twin principles of accountability of the Executive to Parliament and independent scrutiny by the Comptroller and Auditor General are enormously important to good government. Present arrangements have evolved gradually over the past century and it is valuable to have the benefit of Lord Sharman’s views on how these arrangements should now be developed to best fit the 21st century.
"The Government will consider Lord Sharman’s recommendations very carefully with a view to improving the present system of accountability.
"It will be important to consult widely among departments, other bodies which might be affected and other key stakeholders, before issuing a formal response in due course."
NOTES FOR EDITORS
Lord Sharman’s review, published today in answer to a written parliamentary question, was set up by the Chief Secretary to consider among other things the concerns raised by the Chairman and members of the Public Accounts Committee during debate on the Government Resources and Accounts Bill, which received Royal Assent in July 2000. These concerns focused on the rights of the Comptroller and Auditor General, Parliament’s "watchdog".
The Review was overseen by a Steering Group chaired by the Chief Secretary. The PAC Chairman and two other members of the PAC (Alan Williams; David Rendel) were also members of the Steering Group. Other members included Lord Sainsbury, senior officials, Peter Hennessy and senior representatives of accounting organisations.
The full terms of reference are attached.
REVIEW OF AUDIT AND ACCOUNTABILITY FOR CENTRAL GOVERNMENT: TERMS OF REFERENCE
The review will consider suitable arrangements for the audit and accountability of central government in the 21st century on behalf of Parliament and the public, and make recommendations. The review will:
- cover the issues raised by the Committee of Public Accounts, concerning the roles and powers of the Comptroller and Auditor General, in their report on the Government Resources and Accounts Bill (9th report 1999-2000 HC159), including:
- audit access (for the Comptroller and Auditor General to discharge his responsibilities efficiently and independently);
- ensuring accountability in the light of developments in the way public services are delivered; and
- the scope of audit (including issues of regularity, propriety and corporate governance). cover other relevant issues such as the role of audit in modernising government, including: performance validation;
- the audit of joined-up activities; and
- the implications for attitudes to risk-taking.
- will have regard to:
- the importance of Parliamentary scrutiny and accountability in the round;
- the costs and burden of regulation;
- the mechanics of change;
- the implications of devolution;
- the wider European context (with particular reference to European directives affecting audit arrangements);
- possible models from other countries; and
- the relationship with other audit and regulatory bodies. Click on the link below to download the full report in pdf form. If you do not have a pdf reader, one can be downloaded free by clicking on the link to adobe.com
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