Agenda item

To receive updates on:

·       The Redmond Review

·       SWLEP and the Committees role in relation to SWLEP

·       National issues holding up accounts

Lizzie Watkin (Assistant Director Finance & Deputy s151) presented the regulatory updates report. There were 3 aspects covered within the report:

Redmond Review

Further announcements had been made by government in response to the Redmond Review. This included a new body to oversee the reporting for local councils, the Audit Reporting and Governance Authority (ARGA). Plans were also announced to make audit committees compulsory for all councils and include a requirement for at least one independent member to be appointed to that committee.

At a previous meeting, the Committee had already determined to recruit an independent member. The officer explained that an advert had gone out for the role, but no applications were received. The Independent Renumeration Panel had also been convened to look at renumeration for the role, and their recommendation would go to Full Council in October. The process would be run again so that the Committee could get access to independent advice and knowledge. 

Further updates were awaited from government, it was possible there would be updates to the code of practise used for the Statement of Accounts. Once received, these would be brought to the Committee and included in any training on the Statement of Accounts.

LEPs

A review of Local Enterprise Partnerships (LEPs) had been undertaken following the reduction of LEPs role in allocating funding and the set up of the Levelling Up Fund and Shared Prosperity Fund. These were indications that Councils would administer more funding and the LEPs role would be in the form of joint working and collaboration, rather than the approval of funding. 

In response to questions regarding the SWLEP the officer stated that the council was the administering body for the grant funding for the LEP and that the money flowed through us. So, there was a slightly increased risk exposure and there would also be additional need in terms of Audit. It was thought the council was well placed as it had a lot of experience administering grants. It was confirmed that local authorities were requesting clarity from government on how it would all work, which would reduce the internal audit burden.

Accounts External Audit sign-off

There was a national issue with accounts and for Wiltshire Council the 2019/20 accounts had still not been approved. A consultation had been undertaken by CIPFA with proposals regarding the Infrastructure Asset Accounting and draft guidance issued. An update to the code of practice was expected and this was needed in order to sign off the 2019/20 accounts. It had been due in June 2022 but had not yet been issued. It was still hoped that the External Auditors could sign off the 2019/20 accounts over the summer and then the accounts be approved by the Deputy Chief Executive (S151 Officer) in consultation with the Chair of the Audit and Governance Committee. However, the delay may have an impact on the progress of the 2020/21 and 2021/22 accounts. The November meeting of the Committee was still the current target to approve both those sets of accounts. Updates would be given to the Committee as required.

Members voiced their disappointment regarding the delays with the accounts and hoped that changes to the Code would not cause lots of additional work. The officer confirmed that changes to the Code would apply to all accounts that were not signed off and not just future accounts. In regard to the historical problems which had delayed the accounts getting signed off, the officer explained that all of the information requested by the External Auditors had bene provided and were going through the review process of the External Audit partner. Officers were confident that the historical issues were resolved but were awaiting an update from Deloitte.

The Chairman, seconded by Cllr Gavin Grant, proposed as motion to the note the report and it was,

Resolved:

That the Audit and Governance Committee note the contents of the regulatory updates report.