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Dermott Calpin dips into the Audit Commission's latest annual accounts. The Audit Commission marked its 25th anniversary with the publication of a book and a major review of its auditing and inspection work. As the book's title suggested, Follow the money tracked the history of the public service watchdog, from its founding in 1983 to the eve of its consultations on plans to introduce Comprehensive Area Assessments. With CAA due to be launched in April next year, the commission is now busy preparing for its latest evolution, and has used its annual report and accounts to underline its role as an ‘independent watchdog, driving economy, efficiency and effectiveness in local public services to deliver better outcomes for everyone', promising that ‘as the world around us evolves, so do we', and ‘we will continue to reduce the burden of regulation'. Originally set up to oversee only local government, the commission has made a virtue of change and adaptability over the years, taking on responsibilities for the National Health Service in 1990, the operation of best value from 1999, and the Comprehensive Performance Assessments from 2003 which, it claims, have led to notable improvement in council services and efficiency. The commission's remit covers some 11,000 different organisations in England which, between them, are responsible for spending more than £180bn of public money a year, so there should be some comfort in its stated mission to be ‘a driving force in the improvement of public services'. For chairman, Michael O'Higgins, and chief executive, Steve Bundred, the core ‘value for money' focus has remained the lodestone for the commission's work, even as it gears up for the new CAA's promise of a more ‘joined-up and lighter touch' approach to public service delivery. In their joint foreword to the annual report, the two men insist: ‘We are in good shape to meet our new challenges', and the commentary certainly offers some interesting insights into the workings of the watchdog which generated an income of some £219.7m over the financial year – ending in March – with £193.2m coming from fees and a further £23.9m from government grants. Overall, the commission managed to bounce back from a deficit of £4.6m last year to record a surplus of £3.9m. More than 2,000 people work for the Audit Commission and perhaps, not surprisingly, its salary bill of £109m is its single largest expenditure – although the report prefers the phrase ‘single largest investment', and stresses the importance it attaches to staff training and development. Audit Commission – key facts: had an income of £219.7m last year – with the largest proportion, £156.9m, coming from local government, community safety and housing employs some 2,000 people and has an annual salary bill of £109m by 2012, 8% of the workforce at all levels will be people with disabilities; 50% of senior positions will be filled by women, and 10% of people in senior positions will be from black and minority ethnic backgrounds the Audit Commission is rated as one of the UK's 100 most gay-friendly employers in Stonewall's workplace equality index. there are some 2,000 laptop users and over the past year, 13 partially-encrypted and password-protected laptops, six personal digital assistants and 25b mobile phones were lost. Local government, community safety and housing is the biggest source of income accounting from £156.9m in fees and grants, with £72.4m coming from health, and the commission says that over the next three years, income will decrease because of a reduction in the number of inspections under CAA. To help meet these changes, it promises to cut its own spending by some £25m a year by 2010/11, and then adds that it will limit increases in audit and inspection fees to just 1.25% over the same period. Elsewhere in the report, the commission is keen to display a softer – dare we say, lighter touch – image and sets out its commitment to the twin priorities of diversity and sustainability. There is a highly laudable emphasis on the importance of diversity, with targeted recruitment campaigns aiming to ensure that by 2012, 8% of all staff will include people with disabilities, half of all senior positions will be filled by women, and 10% of all people in senior positions will be from black and minority ethnic backgrounds. Reducing the environmental impact of staff travel has led to a 95% increase in video conferencing which, it claims, has helped save 400,000 business miles – a 5% reduction in overall mileage, with the promise of further reductions by encouraging more flexible working practice and making greater use of new technology. Use of more flexible home working has been given a further boost with the completion of a major scheme to integrate voice and data IT network at more than 200 different sites, and the commission believes the improved communications will lead to £1m in savings over the next three years, as well as reducing business miles and lowering the impact on the environment. Copies of the annual report are available from: _reports.asphttp://www.audit-commission.gov.uk/aboutus/annual.

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WHITEHALL

Auditing the auditors

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