As major employers, councils contribute significantly to local economies. As community leaders, they bring together other agencies – in the private, public and voluntary sectors – to work towards common goals that meet the needs and aspirations of their citizens.

Demands on these services are increasing, as are public expectations of quality, responsiveness and cost effectiveness. The Wales Audit Office works closely with councils, the Welsh Assembly Government and other inspectors and regulators to improve local public services.

Councils are held to public account for their performance by external review through annual audit and assessment programmes. Much of the Wales Audit Office’s work with local authorities is derived from assessment duties and inspection powers in relation to the Wales Programme for Improvement, modified by the Local Government Measure. This work is co-ordinated with its financial audit and study work.

Improvement in Local Government

The Wales Programme for Improvement (WPI) underpinned by the statutory requirements of the Local Government Act 1999 was introduced in Wales in 2002 as a new approach to stimulating and supporting improvement in the delivery of local services. Under the programme, councils examine and seek to improve the health of the corporate organisation and the performance of the range of services they provide. The Programme is being further developed under the Local Government (Wales) Measure 2009.

The Local Government Measure has lead to significant changes to the Wales Programme for Improvement and new duties for the Auditor General for Wales. In summary, the Measure:

• expands local authorities, national park authorities and fire and rescue authorities’ duties in relation to making arrangements to secure continuous improvement,
• creates a general power for local authorities, National Park authorities and fire and rescue authorities to collaborate with each other to secure improvement, and includes a power for the Welsh Ministers to direct collaboration;
• places duties on authorities to use their performance information to account for the levels of services they are providing; 
• makes provision to ensure greater collaboration between local government auditors, regulators and inspectors so as to maximise value;
• expands and clarifies Ministers’ powers to support improvement and to intervene where necessary; and 
• creates a common duty on local service providers to prepare and deliver a community strategy which includes an action plan.

While for councils, work on the accounts will appear unchanged, there will be significant changes to performance and inspection work. The Auditor General, in collaboration with Estyn and Care and Social Services Inspectorate Wales (CSSIW) is introducing an overall Improvement Assessment for each council. She will only undertake special inspections where there are clearly issues that justify such an approach. The Improvement Assessment will consist of a forward looking review of councils’ corporate arrangements to support improvement and a retrospective assessment of improvement in services.

The Assembly Government has decided to phase implementation of the Measure and has created draft guidance. The Auditor General continues to consult on her emerging approach to audit and inspection and the reporting of key judgements.

CSSIW are also revising their arrangements for the inspection and review of local authority social services.

For more information contact:
Jane Holownia, Engagement Partner, Wales Programme for Improvement, Wales Audit Office