News / Use of resources review confirmed

The Audit Commission has reiterated its intention to review the use of resources assessment for 2010/11.

The spending watchdog responded last month to independent reports evaluating the impact and cost of the first year of comprehensive area assessments.

The reports found widespread support for the principles on the new approach, which pulls together the work of numerous inspectorates to provide an area-wide performance assessment.

They also flagged up some concerns from the public sectors under assessment. For instance, the reports said organisations felt the use of resources assessment, which has a common framework across local government, police and PCTs, was not focused enough on outcomes and was still driven by a tick box mentality.

The commission said it accepted that the use of resources assessment element of CAA was ‘perceived as burdensome’ by local bodies. It has already promised to take a risk-based approach for 2009/10 assessments, with auditors taking a light-touch approach where organisations have previously scored well in specific key lines of enquiry.

However it is keen to go beyond this in future years. ‘We will also carry out a more fundamental review of our approach to use of resources and organisational assessments for implementing in 2011,’ it said. ‘In future years, we will also seek to make more of the annual audit letter as the prime accountability report for organisations.'

The commission had already revealed its planned review when it announced its work programme for the coming year in October 2009. The review will look at all its local value for money work, which is expected to include use of resources assessments (for PCTs) and auditor’s local evaluation (for NHS trusts).