Agenda item

(a)       That the content of the Grant Claim Certification for 2011/12 be noted;

(b)       That the suggested training session for Council officers by Wales Audit Office be pursued; and

(c)        That outcomes from the Wales Audit Office report on Certification of Grants and Returns 2011/12 be included in the report for 2012/13 to show comparison.

Ms. A. Hughes of Wales Audit Office (WAO) presented the annual report on the grant claim certification for the year ending 31 March 2012.  She confirmed that the Council generally had adequate arrangements in place for the production and submission of its 2011/12 grants claims.  It was noted that the Council had addressed a number of recommendations made in the report for 2010/11 including the procedure on the grants completion checklist for all grant claims.

The overall grants total for 2011/12 was £193m comprising 26 grants and returns, 14 of which were unqualified with no amendment, four unqualified with some amendment, three qualified with no amendment and five qualified with some amendment.

In response to the Chair’s request for further explanation, Ms. Hughes said that a qualification meant that an error had been identified, such as where the Council’s correct process had not been followed, which could not be resolved through adjustment.  She stated that the recommendations all related to procedural and process type matters and that the WAO would work with Council officers to improve these.  To assist with this, she suggested that the WAO provide training to officers responsible for dealing with grants.

Councillor M. Bateman asked if any of the grants and returns certified for 2011/12 had been qualified in previous years.  Ms. Hughes did not have this information to hand but was aware of previous qualified claims for Communities First which were not unique to Flintshire.  Councillor Bateman went on to question the length of time of qualification and whether actions from previous years had been addressed.  Ms. Hughes said that previous recommendations had mainly been addressed although some remained outstanding and were carried forward.  A qualification could result in a request from the grant awarding body for further information to satisfy itself of the outcome.

Councillor G.S. Banks referred to the net adjustment of £44K resulting from changes to grant entitlement and asked how this compared with other Councils.  Whilst unable to comment on comparison, Ms. Hughes felt that this figure was a fair result based on the number of amendments required and the overall total.

The Corporate Finance Manager reassured Members that steps were taken to deal with the recommendations and findings of the WAO and that improvements had been made through the implementation of the new structure in Finance.  He acknowledged that further improvements were needed and welcomed the suggestion of training which would benefit audit time and fees.  Ms. Hughes commented that insufficient supporting papers resulted in increased time of WAO audit work which was reflected in fees payable by the Council.

In responding to a question from the Chair on the Housing and Council Tax Benefits Scheme, Ms. Hughes commented that this was an area of significant complexity within many Councils, where individuals were required to notify the Council of any changes in circumstances.  She explained that the lack of an adequate audit trail for this area meant that no evidence could be shown to demonstrate the preparation of calculations.  A previous report issued by WAO had been critical of the Council’s processes in this area, however Ms. Hughes was pleased to note that these had mostly been addressed.

Further queries were raised by the Chair on Recommendations 2 and 5 in the report.  On the latter, Ms. Hughes confirmed that the Council adequately recorded its assets but recommended that Communities First held a register to list its assets and that this was outside the Council’s remit.  On the strengthening of arrangements to ensure that adequate supporting information was provided to WAO, the Corporate Finance Manager said that the improved process in completing grant claim completion checklists would assist in the majority of cases.

Councillor Banks asked if the outcomes from the report could be included in the report for 2012/13 to show comparison and progress made.  Ms. Hughes agreed to this request.

RESOLVED:

(a)       That the content of the Grant Claim Certification for 2011/12 be noted;

(b)       That the suggested training session for Council officers by Wales Audit Office be pursued; and

(c)        That outcomes from the Wales Audit Office report on Certification of Grants and Returns 2011/12 be included in the report for 2012/13 to show comparison.