Commentary Part 5 – Conduct of Local Audit Paragraphs 1 to 3: Public interest reports, written recommendations and supply of public interest reports
88.Paragraph 1 places a duty on a local auditor to consider whether in the public interest, they should make a public interest report on any matter coming to their attention during the audit and relating to the authority or connected entity to the authority so that the recommendation can be considered by the relevant authority or brought to the attention of the public. Paragraph 2 enables a local auditor to issue written recommendations to the authority relating to the authority or entity connected with it, so that the recommendation may be considered. Public interest reports and recommendations can be in relation to the authority being audited or any entity connected with that authority and can be issued during or at the end of the audit.
89.A local auditor is required to inform the authority’s auditor panel as soon as is reasonably practicable after making a public interest report. This is so that the auditor panel is aware of the auditor’s action but the panel does not influence the auditor’s decision about whether to issue a report, as this could undermine or be perceived to undermine the auditor’s independence from the relevant authority. The auditor must send public interest reports and recommendations to the Secretary of State; the related authority if the report or recommendation is in relation to a connected entity; and to the Greater London Authority for reports / recommendations relating to the London Pensions Fund Authority, a functional body, or a connected entity of a functional body. The local auditor must send public interest reports and recommendations to the National Health Service Commissioning Board in the case of clinical commissioning groups.
90.There is express provision which enables the local auditor to recover reasonable costs of investigating issues and preparing public interest reports and recommendations from the relevant authority, further supporting the auditor’s independence from the authority.