Local government reorganisation is being discussed at a time when public sector financial reporting is already under pressure. MPs on the Public Accounts Committee (PAC) have warned that structural change could add further strain just as the local audit system is trying to recover.
The PAC’s concerns were raised in the context of the Whole of Government Accounts (WGA)—the Government’s consolidated accounts—where incomplete or unaudited underlying information can reduce confidence in the overall picture of the public finances.
The National Audit Office (NAO) has highlighted how delays in English local authority audits can affect the ability to finalise the WGA.
Moving to new unitary arrangements can add accounting and audit complexity—transferring assets and liabilities, aligning systems and preserving audit trails. The PAC has called for clearer Government plans and milestones to stabilise local audit, warning that transparency and timely, auditable information are harder to maintain when capacity is stretched.
What this means for councils and other public bodies
- Plan early: transition activity can slow closedown and audit if roles, timetables and data ownership are unclear.
- Protect the audit trail: consistent records and evidence reduce rework and additional audit testing.
- Keep governance current: update controls, policies and reporting as teams and systems change.
How TIAA can help
TIAA supports public sector bodies with practical advice on closedown and transition planning, maintaining effective governance and financial reporting – helping teams reduce audit risk and stay on top of change.
Speak to us: Contact TIAA to discuss how we can help your organisation prepare for reorganisation and improve the quality and timeliness of your accounts.