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ALEOs: Accounts Commission highlights importance of clear governance and accountability

An Accounts Commission report published yesterday, entitled Arm’s-Length External Organisations (ALEOs): are you getting it right?, says councils are increasingly using arm’s-length organisations as an alternative way of delivering services.

Most councils use ALEOs, which can provide financial and operational advantages, such as business rates relief for charities and greater flexibility in service delivery. They are separate bodies, but councils are still responsible for the funds used and ensuring value for money. Arrangements can be complex and good governance arrangements are crucial.

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