Cpa 'downgrading' For Iceland Councils

摘要

The Audit Commission is reviewing CPA results at five councils, after receiving complaints of over-zealous downgrading following the Icelandic banking crisis. A report into the LGA's response to Iceland's financial crises last autumn, published by the association on 13 January, revealed five authorities with money frozen in defunct bank accounts were 'understood' to have received lower ratings for some of their CPA use of resources (UoR) scores as a consequence. The Audit Commission confirmed it was dealing with a number of appeals against council CPA scores based on the treatment of Icelandic banking cash, but refused to name them. The LGA initially claimed it had prevented a further 14 authorities from 'losing their four-star UoR rating because of the banking crisis, but the commission denied this. Around ￡900m of local government cash is stuck in defunct Icelandic accounts, including ￡10m of Audit Commission deposits. The LGA revealed that despite modified commission guidance to CPA auditors following the problems in Iceland, 'five councils are understood to have had their ratings reduced, although some are now under appeal'.