News / Audit future unclear after shock abolition

There was confusion over the future supervision of NHS financial management after the government announced the abolition of the Audit Commission.

The announcement, made with no advance fanfare by communities secretary Eric Pickles in August, made little mention of future arrangements for the NHS. Mr Pickles’ statement said the commission’s research activities would end and the new health audit framework be developed in line with the NHS white paper, Liberating the NHS. This could mean a role for Monitor, the new NHS Commissioning Board, the Department of Health or the NHS Information Centre.

The commission recently announced it would review the quality of reference cost data as part of its payment by results (PBR) assurance programme for 2010/11. It is due to discuss the 2011/12 programme with the Department later this year.

The commission said it would offer its expertise in PBR data assurance to the bodies mentioned above to inform discussion on future arrangements.

The commission’s in-house audit practice, the fifth largest in the country, may be the subject of a private bid or management buyout, though a mutual organisation could be established.

There was shock at the announcement, particularly as it was believed the commission would be pivotal in the oversight of the new NHS commissioning consortia.

The Department said that existing arrangements would continue until strategic health authorities and primary care trusts were abolished. However, the Department also plans to strengthen its control of financial performance during the transition to the new commissioning arrangements.