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New guidance clarifies auditors' responsibilities in relation to individual budgets
The Audit Commission has published guidance that sets out the approach it expects its appointed auditors to take when reviewing the arrangements that local authorities put in place to make individual and direct payments for adult care packages.
The guidance makes it clear that audit work in this area should reflect the basic principle that it is audited bodies that are accountable for the public money they grant and not the individuals who receive, and go on to spend, it.
Individual budgets are designed to empower people who currently receive services by giving them greater choice and control over their own support arrangements. This can be a cash direct payment, services commissioned by the local authority or broker who manage the budget on an individual's behalf, or a combination of both.
Money can be spent on any product or service that achieves the outcomes specified in the individual's care plan.
Michael O'Higgins, Chairman of the Audit Commission, said:
'Our auditors need to satisfy themselves that funds are allocated through a properly managed assessment and payment process and in accordance with the relevant statutory guidance. But the external audit trail does not extend to how individual service users spend that money.'
The guidance can be found here.
Notes to editors
- The Audit Commission has published this guidance to address misplaced concern that audit work on individual budgets could conflict with the empowerment objective that lies at the heart of these schemes.
- The Audit Commission is an independent watchdog, driving economy, efficiency and effectiveness in local public services to deliver better outcomes for everyone. Our work across local government, health, housing, community safety and fire and rescue services means that we have a unique perspective. We promote value for money for taxpayers, covering £180 billion spent by 11,000 local public bodies. As a force for improvement, we work in partnership to assess local public services and make practical recommendations for promoting a better quality of life for people.
- Further details about the role of the Audit Commission can be obtained from - http://www.audit-commission.gov.uk
