Issue - meetings

The Committee considered the Annual Governance Report 2011-12.

The Annual Governance Report, which was circulated at the meeting, summarised the findings from the 2011/12 Audit and identified the key issues that had been considered by the Audit Commission before issuing their opinion on the Council’s financial statements and its arrangements for securing economy, efficiency and effectiveness in the use of resources.

The District Auditor, Judith Tench, presented the report to the Committee and in doing so indicated that she had received objections to the accounts from two local electors. She had therefore agreed to hold the audit open until 12^th October to allow the objectors to provide more information. At this stage, she expected to sign an unqualified opinion on the Council’s accounts on 28^th September. The auditor’s report would not include a certificate of closing. However, if no further information were forthcoming from the objectors, the accounts would be closed on 12^th October.

The District Auditor expressed concern about whether the Council had proper arrangements in place to secure value for money in its use of resources. She therefore intended to issue a qualified value for money opinion which would draw attention to identified weaknesses, in particular relating to arrangements for developing business proposals and managing projects. She also felt that there were far too many small projects and that many of these were not aligned to stated priorities. However, she noted the Council’s intention to embed sound project management practices throughout the organisation.

With regard to financial resilience, the District Auditor commented that the Council’s General Fund reserves were no longer adequate to support in-year pressures and that the continued use of reserves for this purpose was unsustainable.

The District Auditor indicated that she was satisfied with the measures that the Council had put in place in relation to Lyme Green and that the incoming auditors were aware of the issues.

Finally, the District Auditor drew attention to the four high level recommendations on page 17 of her report, which she suggested required a whole Council response.

RESOLVED

That

(1)  the Annual Governance Report 2011-12 be received and noted, including the adjustments to the financial statements included in the report and the four high level recommendations at page 17 of the report; and

(2)  the draft letter of management representation set out at Appendix 4 to the Annual Governance Report be approved.