The National Audit Office and the Select Committee System 1979–2019

Abstract

This is the first account of the relationship between select committees and the National Audit Office (NAO). The relationship has been often dismissed, but this article argues that it has been vital for the success of the committee system. Initially, both the committees and the audit office were established to strengthen the scrutiny of public administration. Despite the intentions of the early reformers, they did not initially collaborate. In the 1990s and 2000s, early reluctance gave way to enthusiastic collaboration between the two institutions. Initially, this collaboration focussed on financial and environmental scrutiny, but it has since expanded as the auditors have gained more confidence and the committees more familiarity with their work. Now the NAO advises committees on subjects such as European Union exit, which it would have never discussed with them only 40 years previously. This article provides both an account of that collaboration and an explanation for why the NAO and the committees have become so closely associated.

Holding the government to account for its finances: the “Unsung” heroes of the UK parliament scrutiny unit

“…Currently these three separate types of authority are displayed through three separate Parliamentary processes being the Budget and associated Finance Act which authorise taxation, the Estimates and associated Supply and Appropriation Act which authorise spending and the Accounts (which enable the process of scrutiny). These processes roughly coincide with what Ferry and Eckersley (2011, 2012, 2019 describe as the four acts of financial control in central and local government relations being the spending review, budget, audit and accountability, and risk management arrangements. Prior to the Estimates, the Government also publishes multi-year Spending Reviews: whilst not formally approved by the House, they may be scrutinised by it, although the degree to which this happens in practice can vary considerably.…”

“…The OBR compiles economic forecasts consistent with budget. The NAO publishes departmental overviews that summarise the main information in the annual reports and accounts and other information revealed through the NAO's value for money reports (Midgley, 2019, p. 789). However, the technical challenge for MPs remains a large one.…”

“…The Scrutiny Unit was created in 2001 to fill the gap around scrutiny of finances (Midgley, 2019, p. 790). The Scrutiny Unit's finance team comprises a small group of qualified accountants, economists and data visualizers employed to assist the committees and the Commons in their scrutiny of government financial information.…”

“…The role of the Scrutiny Unit has not been described in the accounting literature, as far as we know, and academic references have been passing (e.g. Midgley, 2019, p. 790), but it lies at the centre of the system of financial accountability in the UK. Understanding the Unit's place in the system has become more important.…”

Democracy, accountability and audit: the creation of the UK NAO as a defence of liberty

“…1983 act led to further integration of the NAO into the work of select committees (Midgley, 2019), but in some ways the vital work of reimagining the practice of audit as a democratic function is only beginning.…”