Local Audit Leadership transferred to MHCLG
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Published: 12 February 2025
On Wednesday 12 February 2025, local audit system leadership responsibilities transferred from the Financial Reporting Council (FRC) back to the Ministry of Housing, Communities and Local Government (MHCLG).
This follows the launch in December 2024 of the Government’s strategy for overhauling the local audit system in England which includes commitments to establish a Local Audit Office.
Since jointly signing a Memorandum of Understanding in March 2023, the FRC has worked closely with MHCLG on addressing the challenges facing the local audit system in England, including timeliness issues in the publication of audit accounts by local bodies.
The FRC will continue to support MHCLG in its regulatory role in the successful delivery of measures to address the backlog. As part of the ongoing transition, Neil Harris, the FRC’s Director of Local Audit, will now be supporting the Department as an independent expert adviser.
Sarah Rapson, FRC Executive Director of Supervision“The FRC is proud of the work which Neil and our local audit team have led on our period of system leadership which led to the measures in place to clear the backlog and rebuild a system of assurance over public expenditure which taxpayers deserve.
Following today’s transfer of system leadership responsibilities back to the Government, the FRC will continue to use its regulatory role alongside the NAO to support auditors and remain an active partner in transforming the local audit system.”