Use of resources
This is an annual assessment, as part of each council's external audit, and covers five themes. These are:
- Financial reporting
- Financial management
- Financial standing
- Internal control
- Value for money
The assessment focuses on financial issues but links to the strategic management of the council. It looks at how financial management is integrated with the council’s strategy and corporate management, supports its priorities and delivers value for money.
Each theme is scored 1 to 4, 4 being the highest, and a rules table is used to bring all five themes together in a single judgement of 1 to 4.
Financial reporting – assesses the quality and timeliness of financial reporting
Financial management - assesses councils’ financial management, which encompasses medium-term financial planning, budget management and asset management
Financial standing - assesses how well a council manages its spending within available resources.
Internal control - assesses whether a council has effective arrangements to ensure
proper use of public funds and manage its risks
Value for money - focuses on whether councils currently achieve value for money and how they are managing and improving their arrangements.
In 2007, the Audit Commission streamlined the assessment by aligning it with the financial year. These changes mean that year-on-year comparison of scores does not fully represent a like-for-like comparison, but reflects the need for councils to continue to show improvement in their use of resources over time. The new assessment meant there was less time for changes in performance to take effect.
Our use of resources in 2007 was 3 out of 4 overall with improved scores for both financial standing and Value for Money sub elements.
| 2005 | 2006 | 2007 | |
|---|---|---|---|
| Financial reporting | 3 | 3 | 2 |
| Financial management | 2 | 3 | 3 |
| Financial standing | 2 | 2 | 3 |
| Internal control | 3 | 3 | 3 |
| Value for money | 2 | 2 | 3 |
| Overall rating | 2 | 3 | 3 |