The following is a transcript of the speech given by Adrian Crompton, Auditor General for Wales, at our Good Practice Exchange (GPX) event on local government accounts on 11 December 2025.

"I want to address an issue that sits at the very heart of public trust, effective governance, and the financial sustainability of our public bodies in Wales: the need for timely and high-quality local government accounts. 

I often hear comments about these accounts such as, “No one reads them,” “They’re too complicated,” or “No one really understands them.” I get it! But neither can we allow this narrative to go unchallenged. 

Accounts are far more than a technical requirement - they are a window into how public money is being spent. It is the duty of public bodies to prepare accounts that are both timely and of a high quality – in fact accounts that are not timely cannot truly be of high quality. 

This responsibility is matched by an obligation on auditors to carry out our work efficiently and promptly, ensuring that this vital record of financial stewardship is available to the public, the Senedd, the Welsh Government, Whole of Government Accounts, and many others. We have to play our part – and will play our part. 

Timely, high-quality accounts are not just about compliance - they are about demonstrating transparency, accountability, and our collective commitment to the people of Wales."

So, what is the challenge? Why are we here today? 

Across Wales, we are facing a significant backlog in audited accounts. This is not unique to us - many parts of the UK are grappling with similar challenges - but it is a problem we must confront head-on. Let me give you some numbers: 

• 18 local government bodies (56%) achieved the Welsh Government deadline of 30 June 2025 for 2024-25 accounts. This compares with 21 bodies (66%) in 2023-24; and 22 bodies (68%) in 2022-23. 
• In terms of certification of 2024-25 accounts by 31 October 2025: 
  • 9 of 22 unitary authorities were signed on time
  • 3 of 4 police authorities were signed on time 
  • 3 of 3 fire authorities were signed on time 

This is not a challenge we are encountering within the NHS or central government sectors we audit. 

I understand the reasons for some of these delays: the lingering effects of the pandemic, resource constraints, and the increasing complexity of financial reporting. These are real and understandable pressures. However, more than two and a half years since The World Health Organization officially declared the end of COVID-19 as a Public Health Emergency on 5 May 2023, this backlog position appears to be worsening. 

Let me be clear: if we do not act decisively and with urgency, we risk drifting into a situation similar to that seen in much of England, where confidence in public financial management has been fundamentally undermined. 

That cannot and must not happen here in Wales. 

We have an opportunity - and I believe a responsibility - to show that Wales can lead by example, combining rigour with collaboration, and urgency with realism. The public expects timely, accurate accounts. Our collective responsibility is to meet that expectation. 

What will Audit Wales be doing to help? 

Today marks an important step in the right direction - a chance to engage in practical discussions about the barriers we face and explore potential solutions. It is an opportunity to learn from experiences both within Wales and beyond, to share insights, and to shape a collective plan for the future. 

By working together, we can turn these conversations into meaningful action that strengthens accountability and delivers lasting improvements. And we will continue to provide support - both at a local level and through collective events like today - ensuring that collaboration and shared learning remain at the heart of our joint approach. 

I also need to encourage a greater sense of urgency across the sector if we are to address this issue effectively. I will therefore be writing to the Leaders and Chief Executives of bodies that have missed ‘statutory’ deadlines to outline my concerns, request a return to statutory timetables, and ask that they develop robust recovery plans. 

One size does not fit all - each organisation will need a tailored plan that reflects its starting point, capacity, and specific challenges. Our aim is to agree these plans with each body and monitor progress regularly. This means setting realistic but firm deadlines for clearing historical backlogs and meeting current-year obligations. 

The message is simple: the backlog must be addressed urgently. 

We must also take a longer-term view and commit to a robust, sustainable model that builds confidence in financial management more broadly. Partnership working is imperative. There are local authorities in Wales where things are working well. The sector must learn from these examples, share best practice, and support one another in overcoming challenges. 

As a small country, we have a unique opportunity to pool resources, share expertise, and work collaboratively. Together, we can develop shared systems, invest in learning and development, and build the capacity needed to deliver timely, high-quality accounts. Collaboration is not just desirable - it is essential for progress. 

We also need to invest in the systems that support financial reporting and management. Outdated or fragmented systems often create inefficiencies, slowing down processes and reducing accuracy. Modern, integrated systems are essential - not only to improve timeliness and accuracy but also to unlock better data analytics. 

High-quality data is the foundation for insight. It helps us identify trends, benchmark performance, and support informed decision-making. Without it, we risk operating without a clear view. Improving data quality benefits everyone: local authorities, auditors, and ultimately the citizens we serve. 

The challenge before us is significant – but it is not insurmountable. 

Timely, high-quality accounts are fundamental to public trust, effective governance, and financial sustainability. They are far more than numbers on a page; they form a cornerstone of every audited body’s governance framework. 

Overcoming this challenge demands urgency, collaboration, and leadership across the sector. Audit Wales will play its part – offering support and challenge where needed- but success depends on all of us. 

Wales has an opportunity to lead by example: to demonstrate that partnership and determination can deliver transparency and confidence in public financial management. Let’s seize that opportunity. The message is clear: the backlog must be addressed, and together we can make it happen."

To view the materials from the event, including the presentations and packs from our speakers, head to our GPX resources page.