The Treasury has implemented a revised and more proportionate assurance framework for the Island’s Local Government bodies which will save the sector just under ?50,000 each year in its audit costs.
 
At the end of December 2013 the Treasury went out to consultation on its proposed changes to the audit and accounting framework applicable to the Island’s Local Government sector. As a consequence Treasury has progressed the primary proposals in relation to the changes to audit requirements via the Audit (Local Government) Direction Order 2014 which was subsequently approved by Tynwald at its May 2014 sitting.
 
Treasury is particularly pleased to now be in a position to confirm that its proposals for a more proportionate approach to Local Government audit/assurance will result in a 50% saving for those smaller Local Government bodies able to take advantage of the newly implemented assurance review regime. This will now save the sector just under ?50,000 per annum for the next 3 – 5 years (subject to relevant body turnovers remaining within existing levels).
 
Treasury can also confirm that for those Local Government bodies that will continue to require a statutory audit under the revised assurance framework, audit fees overall will remain unchanged at the level set 3 years ago.
 
It is also hoped that further savings can be achieved for the sector with the successful progression of an Audit Act Amendment bill,  which would then permit the current 17 Burial Authorities to also adopt this revised assurance framework.
 
Commenting on the proposals, Minister for the Treasury, Hon. Eddie Teare MHK said: ‘The Treasury is pleased to now be in a position to confirm that the overall cost of full statutory audits, where still required by Local Government bodies, is being held at 2011-12 levels for a further year. However I am particularly pleased that the changes to the regulatory framework that we have recently introduced will now result in a confirmed and significant cost saving for the Local Government sector.’
 
•        Treasury has also announced the reappointment of the current Local Government auditors, Grant Thornton, following a competitive tendering exercise. Chair of the Treasury Audit (Consultative) Committee, Mr Alex Downie OBE MLC commented: ‘I am confident that Grant Thornton will continue to work proactively with the Committee and the Local Government sector to ensure that appropriate levels of assurance and the current high levels of financial compliance are maintained.’