Falkirk Council has been awarded two greens and two reds for its performance by Ernst & Young, the Council’s external auditor.

At the end of September, the Council’s auditors issued their draft Annual Audit Report and action plan, highlighting best practice and areas for improvement.

Using the traffic light rating system – the Council was awarded green lights for:

• Financial Management: The Council has demonstrated good financial monitoring of the in-year revenue budget, and the importance of good financial control is clearly understood. The report noted the Council has sufficient financial skills, capacity and capability.
• Governance & Transparency: The Council has an established governance structure through Council and standing committees, however, there is room to further enhance governance arrangements.

However, the Council was warned it needed to become more financially sustainable and provide better value for money, with the auditors issuing red lights for both categories:

• Financial Sustainability: The Council continues to feel financial pressures and difficult decisions will need to be made to achieve financial balance.
• Value for money: Recognition was given to the Council of the Future programme but auditors felt that planning, implementation and delivery had to speed up. Better governance of the programme would provide greater transparency and scrutiny. 

Speaking at the Leadership Forum in September, Falkirk Council’s Chief Executive, Kenneth Lawrie, also stressed the need to speed up change to ensure Council services are fit for purpose.

At the event he said: “The Council faces tough financial times and that means change has to happen quickly. To do this we need to work as one Council, be more strategic, plan over the long term and take bold moves to improve and transform.”

The audit was undertaken on behalf of the Accounts Commission, the spending watchdog for local government.