Part 3: Timeliness in annual reporting

3.1
In this Part, we describe when local authorities adopted their annual reports and publicly released their annual reports and summary annual reports. We also describe the importance of the statutory requirements for adopting annual reports and their public release.

3.2
The Local Government Act 2002 requires local authorities to:

• complete and adopt an annual report – containing audited financial statements and service performance information – within four months after the end of the financial year;
• make the annual report publicly available within one month of adopting it; and
• release an audited summary of the annual report within one month of adopting the annual report.

3.3
The statistics we use were compiled on 5 December 2014. Appendix 1 sets out more detail on when local authorities adopted and released their annual reports and summary annual reports.

Adopting annual reports

3.4
For 2013/14, three authorities missed the deadline to complete and adopt their audited annual report within four months after the end of the financial year. We are disappointed that three local authorities missed the deadline. Local authorities need to know their statutory obligations and have appropriate procedures to meet them.

Figure 2
Performance in meeting the statutory deadline for adopting annual reports, 2009/10 to 2013/14

3.5
Further, we note that, of the 78 local authorities that adopted their annual reports before the statutory deadline, 34 did so in the last week of October. In comparison, 22 local authorities had adopted in the last week of October for 2012/13. We were surprised and concerned that an increasing number of local authorities completed their initial accountability responsibilities so late into the four-month reporting period. This situation created extra pressures on those involved in the preparation and review of annual reports, and we are also observing flow-on effects on local authorities' work to progress their 2015-25 long-term plans.

Public release of annual reports and summary annual reports

3.6
In addition to our concerns about delayed adoption of audited annual reports, we are concerned that the release of this information to the public has not improved. We consider this unacceptable.

3.7
Four local authorities missed the one-month deadline for releasing their annual reports to the community, and five local authorities missed the one-month deadline for releasing their summary annual reports. Two of these local authorities adopted their annual reports in September. The 2013/14 results are not as good as in the previous two years.⁶

Figure 3
Performance in meeting the statutory deadline for release of annual reports and summary annual reports, 2009/10 to 2013/14

The importance of timely reporting

3.8
Annual reports provide information that helps communities to assess how well their local authorities perform. For communities to do this effectively, the information must be comprehensive and timely.

3.9
Releasing annual reports and summaries are an important part of a local authority's accountability to its community. The summary is the most accessible and understandable information for most readers, and the easiest document to circulate and make widely available.

3.10
We consider that many local authorities need to better project-manage how they produce and publish their annual and summary annual reports.

3.11
Most local authorities publish their annual report on their website. In our view, local authorities should be able to publish their annual reports on a website within a few days of adopting their annual reports. We expect all local authorities to be able to achieve this.

6: The 2013/14 statistics for public release dates do not include the local authorities that adopted their annual reports after 5 December 2014.

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