This is an operational matter for the Audit Commission and I have asked the Controller of Audit at the Audit Commission to write to the noble Lord direct.

Letter from Marcine Waterman, Controller of Audit for the Audit Commission, to Lord Lucas, dated March 2013

Under Section 3(8) of the Audit Commission Act 1998, the Audit Commission has powers to appoint firms of auditors on such terms as it determines. The commission's terms of appointment for auditors include an indemnity for the reasonable costs of litigation that arises in connection with their audit functions. Under

Section 7 of the Act, the commission sets and recovers statutory audit fees, out of which it meets the costs auditors incur in the delivery of audits.

A copy of this letter will appear in Hansard.

This is an operational matter for the Audit Commission and I have asked the Controller of Audit at the Audit Commission to write to the noble Lord direct.

Letter from Marcine Waterman, Controller of Audit, Audit Commission, dated 28 February 2013 to Lord Christopher

Parliamentary Question: how many staff are currently employed by the Audit Commission; and what functions the Commission continues to perform.

Your Parliamentary Question outlined above has been passed to me to reply.

I would add that the programme to end routine inspection and assessment, disband the Audit Commission and introduce a new local audit framework will save £650 million of taxpayers’ money over the next five years.

Your Parliamentary Question outlined above has been passed to me to reply.

As at 1 January 2013 the Audit Commission employed 162 staff. We continue to transition to a smaller organisation of fewer than 70 staff.

The Audit Commission’s core function continues to be the oversight and regulation of the local audit regime. The Commission has four statutory functions in relation to audit:

appointing auditors to local government and NHS bodies;

preparing and keeping under review Codes of Audit Practice, which prescribe how auditors should discharge their statutory duties;

prescribing scales of fees for audits; and

making arrangements for the certification of grant claims and returns.

The Commission appoints auditors to NHS charities under Section 43A of the Charities Act 1993 and also has specific powers to match data for the purposes of preventing and detecting fraud: the National Fraud Initiative.

As well, the Commission has a statutory function, as set out in the Audit Commission Act 1988, to undertake or promote comparative or other studies to improve the services and functions of its audited bodies. This function is currently fulfilled by our programme of national briefings, which supports the work of auditors.

A copy of this letter will appear in Hansard.

This in an operational matter for the Audit Commission and I have asked the Controller of Audit at the Audit Commission to write to the noble Lord direct. I would add that the programme to end routine inspection and assessment, disband the Audit Commission and introduce a new local audit framework will save £650 million of taxpayers’ money over the next five years.

Letter from Marcine Waterman, Controller of Audit for Audit Commission to Lord Christopher, dated 18 September 2012

Your Parliamentary Question outlined above has been passed to me to reply. The Commission employed:

1,985 full-time equivalent (FTE) staff including auditors on 31 March 2010;

1,409 FTE staff including auditors on 31 March 2011; and

1,017 FTE staff including auditors on 31 March 2012.

968 FTE staff left the organisation between 31 March 2010 and 31 March 2012, some of whom received exit packages.

The cost of changes in the staff complement (defined as the cost of exit packages paid or provided for) was:

£26.0 million for 668 staff in 2010/11. £0.2 million paid to these staff appeared in the 2011/12 accounts because actual payments exceeded the estimated provisions; and

£19.8 million for 366 staff in 2011/12, of whom 98 had left by 31 March and 268 had scheduled leaving dates. This excludes the £0.2 million explained above.

All of these figures are shown in the Commission’s audited statutory accounts.

A copy of this letter will appear in Hansard.