He sets out how the public sector watchdog will build on existing efficiency savings, modify its audit and inspection work to respond to the challenges facing the public sector in Wales, and introduce improvements to the way the Wales Audit Office is directed.

The Auditor General commissioned an independent Peer Review to help support the ongoing development of the organisation as it moves into its second three year strategy. The review team, comprising five international experts, was asked to examine the services provided by the Wales Audit Office, how well it is run and the effectiveness of its communication and stakeholder relationships.

The Peer Review found that the Wales Audit Office has had a successful track record during the first four years of its existence and has established itself as credible and independent. But, it is now at a watershed. In its next stage of development, it faces a number of major challenges and opportunities which make it essential to review its progress and make some important changes to remain fit for the future.

It makes a number of recommendations for improvement and the Auditor General has already started work on implementing the broad thrust of these. This includes introducing a more directive management style, with a new Executive Committee, which will be appointed later this autumn. Other developments include plans to undertake more innovative, cross-sector studies as well as more work focusing on cost savings and efficiencies.

Jeremy Colman, the Auditor General for Wales said today:
“I am grateful to the Peer Review for providing a thorough and independent analysis of the Wales Audit Office. I wholeheartedly accept the recommendations and have already made some changes which will enable the organisation to build on its existing successes and move into the next stage of its development. This will help us provide challenge and support to public sector bodies in Wales as they face up to the challenges of the economic downturn.”

Caroline Gardner, Chair of the Peer Review, said today:
“The Wales Audit Office has come a long way since it was established four years ago – delivering high quality work, establishing its credibility and reputation as well as dealing with the inevitable challenges of being created through a public sector merger. It is now at a watershed and needs to make some changes to respond to significant challenges – and I am confident that the Wales Audit Office will do just that. This is the first Peer Review of a United Kingdom audit office, even though the Wales Audit Office is the most recently created of them. That, along with the Wales Audit Office’s own robust self-assessment is a measure of its commitment to improvement.”

Notes to Editors:

• The Peer Review began its work on 27 March 2009. The review team comprised Caroline Gardner, Sir Alistair Graham, Roel Praat, John Purcell and Paul Boeding. Brief biographies of each can be found in Appendix 2 of the Peer Review report.
• The Wales Audit Office is independent of government and is responsible for the annual audit of some £20 billion of annual public expenditure.
• Its mission is to promote improvement, so that people in Wales benefit from accountable, well-managed public services that offer the best possible value for money. It is also committed to identify and spreading good practice across the Welsh public sector.
• The Wales Audit Office was created in April 2005 through the Public Audit (Wales) Act, 2004, which expanded the functions of the Auditor General for Wales and enabled the transfer of staffs from the Audit Commission in Wales and National Audit Office in Wales to his employment.