Agenda item

To present External Audit’s Certification of Grants and Returns report for 2012/13.

The report of External Audit summarising the results of work undertaken on the certification of the Authority’s 2012/13 grant claims and returns was presented for the Committee’s consideration. The report showed where audit amendments were made as a result of the certification work or where the audit certificate had to be qualified, and detailed the key issues behind each of the adjustments and/or qualifications that were made with regard to the relevant grant claims and related recommendations.

The Committee considered the report and highlighted the following issues –

•  Given that the Authority’s performance is below that of the Welsh average with only 11 out of 39 grants and returns unqualified with no amendments, what action is being taken to improve the situation. The Interim Section 151 Officer said that the Authority will be implementing the recommendations/actions for improvement as set out by the Auditors’ report and will report back on progress to the Audit Committee at its December meeting.

•  Now that the preliminary certification work had commenced for 2013/14 grant claims, whether the Auditors are seeing any indication of an improving situation. Mrs Lynn Pamment said that insufficient certification work had been undertaken hitherto to be able to assess whether or not the grants management situation for that year’s claims is improving, but the Auditors could give the Committee an informal indication of progress at its next meeting.

•  Assurance was sought that where discrepancies and anomalies have been identified e.g where payments have been made for services not delivered (Strategic Infrastructure on Anglesey Sites and Premises grant claim 11/12) or where the Council is not able to provide evidence to validate expenditure (School Effectiveness Grant 2012/13) these are being addressed and will be resolved. It was emphasised that the Committee needs to be satisfied that grants are being spent to plan and are delivering to the purpose for which they have been given. The Committee noted that there were two key issues arising - the effectiveness of the financial systems to track and account for expenditure and oversight of the use of grants. The Interim Section 151 Officer said that he would clarify the situation with regard to the Strategic Infrastructure on Anglesey Sites and Premises Grant with the Committee’s Members by letter. He confirmed that financial management processes are being reviewed for the future and that he would bring an itemised report to the Committee’s next meeting detailing the response to each grant claim where the Auditors have identified issues.

•  That there is insufficient Elected Member involvement in the grants management and tendering process. Members need to be better informed about the award of grants, the sourcing body and qualifying criteria along with the process of delivery. It was noted that whilst improvements have been made as regards the Authority’s processes for managing grants, there needs to be a step change so that the Authority is assessed as one of the highest performing Welsh authorities in this respect.

It was resolved to accept the report and to note its contents.

ACTIONS ARISING:

•  Interim Head of Function (Resources) and Section 151 Officer to provide the Committee at its next meeting with an itemised report setting out progress on action  in  response to each grant claim where the Auditors have identified issues.

•  Interim Head of Function to provide the Committee’s Members with clarification of the situation with regard to the Strategic Infrastructure on Anglesey Sites and Premises 11/12 grant claim.

•  External Audit to provide the Committee at its next meeting with a broad indication of progress in relation to the 2013/14 certification of grant claims.