External audit in the National Health Service in England and Wales:a study of an oversight body's control of auditor remuneration

In the National Health Service (NHS) in England and Wales an oversight body, the Audit Commission (AC), defines the scope of the external auditors’ work, appoints the auditors and has oversight of their fees and audit quality. This heavily regulated audit regime mitigates some of the deficiencies observed in high profile corporate failures. Independence, it has been argued, is influenced by the total auditor remuneration paid by the client. In this study we examine total auditor remuneration in a regulated market which seeks to ensure audit independence and audit quality. In particular we undertake rigorous analysis of auditor remuneration by the type of auditor: We place emphasis on the differentiation between private sector firms and the AC’s in-house auditors (District Audit). Individual private audit firms charge premiums (up to 16%) for particular audit work in identified locations, but no premiums were found when we examined total auditor remuneration. The regime appears to permit efficient operation of the audit market while safeguarding both audit independence and standards.

Productivity and price performance in the privatized water and sewerage companies of England and Wales

After its privatization in 1989, the water and sewerage industry of England and Wales faced a new regulatory régime and implemented a substantial capital investment program aimed at improving water and environmental standards. A new RPI + K regulatory pricing system was designed to compensate the industry for its increased capital costs, encourage increased efficiency, and maintain fair prices for customers. This paper evaluates how successful privatization and the resulting system of economic regulation has been. Estimates of productivity growth, derived with quality adjusted output indices, suggest that despite reductions in labor usage, total factor productivity growth has not improved since privatization. Moreover, total price performance indices reveal that increases in output prices have outstripped increases in input costs, a trend which is largely responsible for the increase in economic profits that has occurred since privatization. * We would like to thank Emmanuel Thanassoulis, Joshy Easaw, Jim Love, John Sawkins, and an anonymous referee for helpful comments on earlier drafts of this paper. The usual disclaimer applies.

Seasonal growth of the crustose lichen Rhizocarpon geographicum (L.) DC. in South Gwynedd, Wales

Seasonal growth was studied in the slow-growing crustose lichen Rhizocarpon geographicum (L.) DC. in an area of South Gwynedd, Wales. Radial growth rate (RGR) of a sample of 20 thalli was measured in situ at three-month intervals over 51 months on a southeast-facing rock surface. There were five periods of significant growth: July-September of 1993, 1994 and 1995, in January-March of 1996, and in April-June of 1997. In four of these periods, growth coincided with a mean temperature maximum (Tmax) over a three-month period exceeding 15°C and three of the maxima with greater than 450 sunshine hours. Two of the growth maxima coincided with periods of total rainfall exceeding 300 mm and one with greater than 50 rain days in a three-month period. There were no significant linear correlations between RGR and the climatic variables measured. However, there were significant non-linear relationships between RGR and Tmax, the mean temperature minimum (Tmin), the total number of air and ground frosts and the number of rain days in a growth period, the relationship with Tmax being the most significant. Hence, in south Gwynedd, maximum growth of R. geographicum occurs in any season although the period July-September appears to be the most favourable. Relationships between growth and climatic variables were non-linear, temperature having the most significant influence on seasonal growth. ©2006 Balaban.

Productivity change in the water industry in England and Wales:application of the meta-Malmquist Index

This paper uses a meta-Malmquist index for measuring productivity change of the water industry in England and Wales and compares this to the traditional Malmquist index. The meta-Malmquist index computes productivity change with reference to a meta-frontier, it is computationally simpler and it is circular. The analysis covers all 22 UK water companies in existence in 2007, using data over the period 1993–2007. We focus on operating expenditure in line with assessments in this field, which treat operating and capital expenditure as lacking substitutability. We find important improvements in productivity between 1993 and 2005, most of which were due to frontier shifts rather than catch up to the frontier by companies. After 2005, the productivity shows a declining trend. We further use the meta-Malmquist index to compare the productivities of companies at the same and at different points in time. This shows some interesting results relating to the productivity of each company relative to that of other companies over time, and also how the performance of each company relative to itself over 1993–2007 has evolved. The paper is grounded in the broad theory of methods for measuring productivity change, and more specifically on the use of circular Malmquist indices for that purpose. In this context, the contribution of the paper is methodological and applied. From the methodology perspective, the paper demonstrates the use of circular meta-Malmquist indices in a comparative context not only across companies but also within company across time. This type of within-company assessment using Malmquist indices has not been applied extensively and to the authors’ knowledge not to the UK water industry. From the application perspective, the paper throws light on the performance of UK water companies and assesses the potential impact of regulation on their performance. In this context, it updates the relevant literature using more recent data.

The descriptive ecology of saxicolous lichens in an area of South Merionethshire, Wales

Saxicolous lichen vegetation on Ordovician rock at the mouth of the River Dovey, South Merionethshire, is examined in relation to aspect, slope angle, light intensity, rock porosity, rock microtopography and rock stability. A number of characteristic groups of species are recognized. The environmental factors measured are discussed in some detail. In addition, the wide tolerance of most saxicolous species is emphasized.

The growth of six saxicolous lichens transplanted to lime-rich and lime-poor substrates in south Gwynedd, Wales

The objectives of this study were to investigate: (1) whether foliose lichen thalli could be transplanted from one substrate to another and (2) whether such transplants could be used to study the influence of the substrate on growth. Hence, six saxicolous lichens, with contrasting distributions on lime-rich and lime-poor substrates in South Gwynedd, Wales, were transplanted onto slate, granite, asbestos and cement. Fragments of the perimeters of thalli were glued to the different substrates using Bostic adhesive. Parmelia conspersa (Ehrh. Ex Ach.)Ach. and Parmelia saxatilis (L.)Ach., fragments increased in area over 15 months on slate and granite but decreased in area or did not survive on asbestos and cement. Fragments of Xanthoria parietina (L.)Th.Fr. and Physcia tenella (Scop.)DC. em Bitt. did not survive on slate and granite while some fragments survived but grew poorly on asbestos and cement. Parmelia glabratula ssp. fuliginosa (Fr. ex Duby)Laund. fragments decreased in area on all substrates and especially on cement and asbestos while Physcia orbicularis (Neck.)Poetsch fragments increased in area on granite and cement, decreased on asbestos and did not change significantly on slate. The results suggested that the distribution of P. conspersa and P. saxatilis was determined primarily by physico-chemical properties of the substrate. By contrast, P. glabratula ssp. fuliginosa may have responded to the transplant procedure while X. parietina, Ph. tenella and Ph. orbicularis may require nutrient enrichment to grow successfully on a substrate.

Seasonal growth of foliose lichens in successive years in South Gwynedd, Wales

The aim of this study was to test the hypothesis that differences in the pattern of seasonal growth in foliose lichens from year to year were determined by yearly differences in the distribution of rainfall, shortwave radiation and temperature. Hence, the radial growth of Parmelia conspersa (Ehrh. Ex Ach.) Ach. , P. glabratula ssp. fuliginosa (Fr. ex Duby) Laund. and Physcia orbicularis (Neck) Poetsch. was studied on slate fragments over 34 successive months in an area of South Gwynedd, Wales. U.K. Similarities and differences were observed in the pattern of seasonal growth in the three species. Periods of maximum growth of a species occurred in different seasons in successive years. Correlation and multiple regression analysis suggested that total rainfall per month was the most important climatic variable positively correlated with monthly growth. Significant positive correlations were found in some growth periods with number of raindays per month, average wind speed and maximum and minimum temperature. Total number of sunshine hours per month and the frequency of ground frosts were negatively correlated with monthly growth in some growth periods. For each species, monthly radial growth was correlated with different climatic variables in each growth period. Hence, the results support the hypothesis in that periods of maximum growth can occur in any season in South Gwynedd and depend on (1) the distribution of periods of high total rainfall and (2) whether or not these periods coincide with periods of maximum sunlight.

Stakeholder accounting : the case of the electricity industry in England and Wales

This thesis proposes to explore the potential for stakeholder based accounting as a means to explain the social performance of organisations. It argues that organisations have a contract with society and as a consequence they must be accountable to that society for their actions. Further, it is suggested that as part of this accountability there is a broader need in the public interest for social accounting. Due to the pluralistic nature of modern societies it is argued that a stakeholder framework is one way in which this accountability can be achieved. In order to consider the nature of such social accounting a case study of the electricity industry in England and Wales is undertaken. This industry is very important to modern society, has significant environment implications and has a recent history of remarkable change. These factors make it an interesting and unique case within which to consider accountability. From the performance measurement and accounting literature and a series of interviews with both stakeholders and privatised companies a model of stakeholder performance is developed. This is then used to analyse the electricity industry in England and Wales since privatisation. The objective is to demonstrate how certain stakeholders have fared, whether they have won or lost. Further, institutional and resource dependency theories are used to consider what factors determine the relative success or failure of the different stakeholder groups. Finally the possible implications of recent developments in Social Accounting Standards, such as the Global Reporting Initiative (GRI), AccountAbility 1000 (AA1000) and Social Accountability 8000 (SA8000), and the potential for Internet reporting are considered.

Investigating the supply and demand relationship in a profession: the English and Welsh schools of librarianship and information Studies and the Higher Education Library and Information Services employment sector in England and Wales.

Concern has been expressed in the professional literature - borne out by professional experience and observation - that the supply and demand relationship existing between the 13 English and Welsh Library and Information Studies (LIS) Schools (as providers of `First Professional' staff) and the Higher Education Library and Information Services (HE LIS) sector of England and Wales (as one group of employers of such staff) is unsatisfactory and needs attention. An appropriate methodology to investigate this problem was devised. A basic content analysis of Schools' curricular and recruitment material intended for public consumption was undertaken to establish an overview of the LIS initial professional education system in England and Wales, and to identify and analyse any covert messages imparted to readers. This was followed by a mix of Main Questionnaires and Semi-Structured Interviews with appropriate populations. The investigation revealed some serious areas of dissatisfaction by the HE LIS Chiefs with the role and function of the Schools. Considerable divergence of views emerged on the state of the working relationships between the two sectors and on the Schools' successes in meeting the needs of the HE LIS sector and on CPD provision. There were, however, areas of substantial and consistent agreement between the two sectors. The main implications of the findings were that those areas encompassing divergence of views were worrying and needed addressing by both sides. Possible ways forward included recommendations on improving the image of the profession purveyed by the Schools; the forming of closer and more effective inter-sectoral relationships; recognising fully the importance of `practicum' and increasing and sustaining the network of `practicum' providers.