Catalogue description Department of the Environment and successors: Records of the Audit Commission, Liverpool District Audit Office

The Audit Commission for Local Authorities in England and Wales was established on 21 January 1983 by the Local Government Finance Act 1982 as a public corporation and began operations on 1 April 1983.

On 1 October 1990, the Commission assumed responsibility for the external audit of the National Health Service and was re-titled as the Audit Commission for Local Authorities and the National Health Service in England and Wales. The Audit Commission Act 1998 consolidated the statutory provisions relating to the Commission.

The Commission's powers were extended by the Local Government Act 1999 to include inspection of best value authorities, and by the Local Government Act 2003 to include inspection of registered social landlords. The Local Government Act 2003 also conferred on the Commission express powers to undertake comprehensive performance assessment of local authorities. The Health and Social Care (Community Health and Standards) Act 2003 provided that a foundation trust may appoint an officer of the Commission as its auditor with the agreement of the Commission.

The Commission's inspection functions were extended by the Fire and Rescue Services Act 2004 to cover fire and rescue authorities’ compliance with the Fire and Rescue National Framework. The remit of the Commission in respect of Wales was transferred to the Auditor General for Wales by virtue of the Public Audit (Wales) Act 2004. The words 'and Wales' were removed from the Commission's name in 2008.

The Commission was given an express statutory power to conduct data matching exercises by the Serious Crime Act 2007. The Local Government and Public Involvement in Health Act 2007 transferred the Benefit Fraud Inspectorate to the Commission and gave the Commission a new power to provide advice and assistance to other public bodies. It also conferred on the Commission a power to report on the performance of English local authorities in support of its programme of comprehensive area assessment (which replaced comprehensive performance assessment). The Housing and Regeneration Act 2008 replaced registered social landlords with registered providers of social housing, and conferred on the Commission power to inspect them at the request of the Tenant Services Authority.

The Commission was formally closed on 31 March 2015 and was replaced by the Public Sector Audit Appointments Ltd, the National Audit Office, the Financial Reporting Council and the Cabinet Office in April 2015. The Commission absorbed the District Audit Service which had been established in 1844 of which the Liverpool District Audit Office formed a part. The service was administered through a system of areas and regions which varied through its existence. At the time of the demise of the Commission the Liverpool District Audit Office was located in Chester and formed part of the Northern Region.