Transparency data
DCLG government major project portfolio data, September 2014 (CSV)
Updated 25 June 2015
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| Project name | Enterprise Zones Programme | The Future of Local Audit |
|---|---|---|
| Department | DCLG | DCLG |
| MPA RAG rating (A Delivery Confidence Assessment of the project at a fixed point in time, using a five-point scale, Red – Amber/Red – Amber – Amber/Green – Green; definitions in the MPA Annual Report) | Amber | Amber |
| Description / Aims (From GMPP data) | The Enterprise Zones (EZ) Programme is a key part of the Government’s wider plans for local and national economic growth. The 24 Enterprise Zones offer businesses financial incentives, fast track planning and superfast broadband to support the creation of new jobs and business. Local Enterprise Partnerships (LEPs) are the key agents overseeing the development of the zones. Delivery is taken forward by varying local partners depending on the exact circumstances of the zone. In the majority of cases, local authorities are closely involved in delivery as will relevant land owners and developers. Relevant government departments are working closely with LEPs and other local partners, supporting them to unlock barriers to development and successfully deliver development. Since January 2013, the Government has taken a more hands-on approach to manage the programme to ensure no zone is without development by 2015. Each zone has a series of key actions for LEPs, EZs and Government departments to accelerate progress by 2015. Programme aims: • to drive progress in each zone to ensure no Enterprise Zone is without development by 2015; • to support successful delivery of the 24 EZs so that they create new (net) additional jobs and businesses and contribute to net additional local and national growth. | Disband the Audit Commission and refocus local audit on helping local people to hold councils and local public bodies to account for their spending decisions by: (a) Developing and implementing a new audit regime where all such audits will be regulated within a statutory framework, with oversight by the profession and the National Audit Office (NAO); and (b) Transferring (through outsourcing) the Commission's in-house audit practice into the private sector. |
| Departmental commentary on actions planned or taken on the MPA RAG rating. | As at Quarter 2, the programme was pending the reassessment of programme delivery following the January 2014 MPA Gate 0 review report. The aim of no zone without development by 2015 has been achieved. Zones reported that by end September 2014 12,500 new jobs were created and over 400 new companies were now based in zones and that there had been over £2 billion of private sector investment. End of December 2014 returns from zones show that over 15,500 new jobs will have been created. This milestone demonstrates the significant progress that zones have made during 2014 supported by central funding opportunities, increased brand awareness, an Her Majesty Government (HMG) wide approach and enhanced programme management processes. Improvements to Portfolio Management Office processes since the MPA Review include implementation of strengthened governance, risk management, stakeholder engagement, benefits realisation planning and financial monitoring. Work to quality assure the data collected from the Zones continues. The Building Foundations for Growth (BFG) capital grant funding programme progresses well and is on target to support zones with £120m by the end March 2015, making a real impact on the development journey of 16 zones across the country. On the EZ commercial support package; Local Partnerships and land & property consultants, DTZ Debenham Tie Leung Ltd and GVA Grimley Ltd continue to provide expert advice to EZs; with the final few pieces of work due for completion by March 2015. | As at Quarter 2 there were some key challenging transition points that needed carefully managing to ensure no hiatus or errors. There was a long transition and implementation period to programme completion, during which changes to public bodies and local services continue posing new challenges for audit and value for money. A number of statutory instruments are already in force and further regulations and orders are in the process of being implemented by the time Parliament is dissolved in March to enable the new framework to be in place from 1 April 2015. Audit firms and sector bodies are already well engaged in work required of them from 2017 when current contracts end and new regime begins; comms activity will continue in meantime. Research work on benefits realisation as been initiated. Staff and asset transfer schemes are now in advanced state of preparation together with remaining secondary legislation required to ensure that transitional body is ready to take on contracts and other bodies to pick up their functions once the Commission is closed by 31/03/15. Transition Body Public Sector Audit Appointments (PSAA) is in place and making arrangements for smooth transition of contracts, staff and information assets. Monthly Delivery Boards continue to give oversight of the totality of policy, legislative and structural changes. |
| Project - Start Date (Latest approved start date) | 23/03/2011 | 30/06/2011 |
| Project - End Date (Latest approved end date) | 31/03/2038 | 01/11/2012 |
| Departmental narrative on schedule, including any deviation from planned schedule (if necessary) | On schedule to deliver on all timescales | Since the Local Audit and Accountability Act 2014 received Royal Assent in January 2014, this project has moved into implementation phase. There have been 3 public consultations on various pieces of secondary legislation associated with the framework and 4 commencement orders which have allowed parts of the framework to be introduced to enable transferee bodies to take on some of their functions under the new arrangements. These include the Financial Reporting Council (FRC) - to register supervisory bodies and issue guidance and the NAO - to consult on, and lay, a new code of audit practice. |
| 2014/2015 Budget (£million) | 220.3 | 45.08 |
| 2014/2015 Forecast (£million) | 220.3 | 12.08 |
| 2014/2015 Variance (£million) | 0 | -33 |
| 2014/2015 Variance %age | 0% | 73% |
| Total budgeted whole life costs (£million) (including non-government costs) | 228.3 | 45.08 |
| Departmental narrative on budget/forecast variance for 2014/15 (if variance is more than 5%) | Budget variance less than 5% | Original budget estimates for 2014/15 included the annual cost of in-house auditors. From 2013/14 in-house Audit Commission audit staff transferred to the private sector audit firms that won the outsourcing contracts. The 73% reduction between 2014/15 budget and forecast is a result of this in-house audit work now being undertaken by the private sector as well as savings achieved by the Commission no longer carrying out Comprehensive Area Assessment and Inspection since 2010 |
| Departmental narrative on budgeted whole life costs | £228.30m covers a 3 year period from 2013 to 2016. | Savings far outweigh the costs as set out in https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/349418/2014_FINAL_Local_Audit_IA.pdf) There are no anticipated major costs within remainder of the project. The figures are from the Impact Assessment, published in September 2014. |