Summing up provides an overview of councils' progress in developing their financial management arrangements between 2005 and 2008, and discusses the importance of sound financial management in helping to meet the challenges facing local government in the short to medium term.
Councils are accountable for around one-quarter of all public spending, and sound and strategic financial management is essential to ensure that resources are available to help improve services. The report draws on a range of information including use of resources assessments, returns from auditors, surveys of senior council officers and a review of annual accounts.
The report finds that there has been steady improvement in councils' use of resources, but there has been an inevitable variation in performance. The imminent change in the use of resources assessment framework under the Comprehensive Area Assessment (CAA), and the challenges facing local government arising from the economic downturn and the introduction of international financial reporting standards, mean that it is timely for councils to consider their financial management performance.
Ratio tool
View the web based comparator tool enabling councils to review their ratios and how these compare to others. We would welcome feedback on the usefulness of this tool. If you have any comments please send them to ratios@audit-commission.gov.uk.