Agenda item

(a)       That the final version of the Statement of Accounts 2021/22 be approved;

(b)       That the Audit Wales report - Audit of the Financial Statements 2021/22, Flintshire County Council - be noted;

(c)       That the Letter of Representation be approved;

(d)       That a detailed assurance report be shared with the Committee about arrangements in place to manage potential conflicts of interests of senior officers; and

(e)       That a request is made to senior officers who have made such declarations to establish whether they are willing to share that information with the Committee.

The Corporate Finance Manager presented the final version of the Statement of Accounts 2021/22 incorporating changes agreed with Audit Wales (AW) during the course of the audit.  He reminded the Committee that, as reported to the previous meeting, the extended statutory deadline for publishing the final audited accounts had been extended further to 31 January 2023, largely due to a technical accounting issue on infrastructure assets.

In summarising the Audit Wales report, Matthew Edwards thanked the Corporate Finance Manager, Strategic Finance Manager and the team for their support in efficiently working through the issues arising during the audit, which reflected the positive working relationship.  He highlighted the level of materiality determined for the audit and areas of general interest where lower levels applied.  He confirmed that the accounts had been prepared to a good standard and that the Auditor General intended to issue an unqualified audit opinion in due course.  He provided clarification on two significant issues arising from the audit (Exhibit 2) which were consistent with other authorities and confirmed that these were technical accounting adjustments which had been satisfactorily resolved and did not impact on the overall financial position of the Council.

In echoing the tributes paid to Council officers and Audit Wales colleagues, the Chair welcomed continued positive engagement between the two organisations to resolve the issues identified.

Allan Rainford acknowledged the complexities involved in producing the accounts.  In response to a question on Note 18, the Strategic Finance Manager provided clarity on the inclusion of transactions between the Council and related parties within the accounts.  On further questions, Matthew Edwards confirmed that he had no concerns and that Flintshire was one of the majority of councils across Wales expected to sign off their accounts within the revised statutory deadline.  On value for money arrangements, it was noted that the Annual Audit Summary would be shared at a forthcoming meeting.

Councillor Andrew Parkhurst asked if the Council’s asset register could be shared with the Committee.  The Chief Officer (Governance) agreed that this would be provided on the basis that it be kept strictly confidential due to commercial sensitivity.^[1]  On a request to share the register of interests for senior officers, he advised that whilst the Members’ register was a public document, officers were not subject to a mandatory register and therefore the information would need to be shared on a voluntary basis and with good reason, due to the personal information involved.

Councillor Parkhurst stated that his request was to assure the Committee that any potential conflict of interests were being properly managed and he commented that the notes to the core financial statements did not reflect the voluntary nature of the officers’ register of interests.

The Chief Officer advised that there was no requirement for the arrangement to be stipulated within the accounts.  He explained that it was the responsibility of individual officers to manage any conflicts of interest and referred to the Code of Conduct which was subject to regular review by the Standards Committee.  He suggested that the Governance & Audit Committee receives an assurance report from officers on how such issues were managed which could be a more appropriate way forward.

Councillor Glyn Banks spoke in support of Councillor Parkhurst’s request.  His query on the income generated from the collection of water and sewerage charges was responded to by Councillor Bernie Attridge as it had been raised at the Community & Housing Overview & Scrutiny Committee.

When asked for his view on Councillor Parkhurst’s request, Matthew Edwards was not aware of specific arrangements across Wales and was a matter that officers may wish to follow-up.  In providing context on the auditing of the accounts, he explained the approach taken by Audit Wales in respect of auditing disclosures, to give assurance to the Committee.

In response to the Chief Officer’s suggestion, the Chair proposed that a detailed assurance report be shared at a future meeting on the Council’s approach to managing potential interests of officers, with examples where possible.  She suggested that the report could also include examples of good practice at other authorities in Wales.

The Chief Officer said that the officers who had completed the register of interests could also be approached to see if they are willing to share their information on a voluntary basis.

The proposed actions were welcomed by Councillor Parkhurst who thanked everyone for their input.

The recommendations in the report were moved and seconded by Councillor Attridge and Rev Brian Harvey.  The additional recommendation put forward by the Chair was moved and seconded by Councillors Attridge and Marshall.

RESOLVED:

(a)       That the final version of the Statement of Accounts 2021/22 be approved;

(b)       That the Audit Wales report - Audit of the Financial Statements 2021/22, Flintshire County Council - be noted;

(c)       That the Letter of Representation be approved;

(d)       That a detailed assurance report be shared with the Committee about arrangements in place to manage potential conflicts of interests of senior officers; and

(e)       That a request is made to senior officers who have made such declarations to establish whether they are willing to share that information with the Committee.