IRRV Alert - week ending 30th July 2010

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Certifying claims and returns - Audit Commission

 

 

 

 

Our first annual report of auditors' certification work in 2008/09, which is available to download from this page, covers claims and returns in England totalling £45.6 billion.

Auditors have found that most claims for grants and subsidies have been completed by councils in line with the terms and conditions set by grant-paying bodies. But there is room for improvement. Claims and returns were corrected by £54.5 million as a result of our auditors' work, which found errors or examples of non-compliance with grant terms and conditions. Auditors flag up these issues with claimant councils and those who pay grants.

Scope for error

Housing and council tax benefits are a particular concern with 85 per cent of claims qualified, amended, or both by auditors. The report says the complexity of the system and large volume of transactions provides much scope for error. Common issues are difficulty with documentation to support payments to benefit claimants and data entry errors.

Improving practices

Some authorities need to improve their practices. The number of qualification letters issued by auditors to authorities, signalling concerns with a claim or return, increased from 626 in 2007/08 to 673 last year: 24 per cent of claims and returns had qualification letters.

Authorities need to:

  • identify all claims and returns requiring auditor certification and agree a timetable for certification work with their auditor;
  • have effective quality assurance arrangements that ensure claims and returns are properly reviewed before sending them to the auditor;
  • review scheme terms and conditions to ensure claims and returns are compiled correctly and evidence requirements are met; and
  • keep full working papers to support the entries in claims and returns.
 

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