§ Mr. TippingTo ask the Secretary of State for Education what restrictions there are on colleges of further education after 1 April appointing the same firm of auditors to undertake both internal and external audit functions; and if he will make a statement.
§ Mr. BoswellColleges entering the new further education sector on 1 April may use one firm to provide internal and external audit services. The Further Education Funding Council has advised colleges intending to use only one firm that they should satisfy themselves that the arrangements will provide an effective service; and that they should be able to satisfy the council's audit service that each role is clearly defined, that both sets of reporting requirements are fully met and that the internal audit coverage will not be limited to an assessment of the systems and controls that are carried out by an external auditor in forming an opinion. Colleges have also been advised by the council to ensure that their selection process ensures real competition.
§ Mr. TippingTo ask the Secretary of State for Education what arrangements he is making to extend the responsibilities of the Audit Commission to encompass colleges of further education and grant-maintained schools; and if he will make a statement.
§ Mr. BoswellThe Education Bill currently before Parliament includes proposals to allow the Audit Commission to carry out value-for-money studies for the Funding Agency for Schools. The commission is already empowered to undertake similar work for the Further Education Funding Council. The district audit service may, under current arrangements, compete with other companies to provide audit services for grant-maintained schools and, after 1 April, further education corporations, if it chooses to do so.