Agenda item

To consider a report by Chief Finance Officer (copy enclosed) which set out a summary of the key outcomes from WAO’s certification work on the Council’s 2014/15 grants and returns.

A report by the Chief Finance officer (CFO) had been circulated previously.

Members were informed that a report entitled ‘Certification of Grants and Returns 2014-15 – Denbighshire County Council’ had been prepared by the Wales Audit Office (WAO) and circulated with the papers for the meeting.   The report set out a summary of the key outcomes from WAO’s certification work on the Council’s 2014/15 grants and returns.  The WAO had requested that the internal report be presented on an annual basis to the Corporate Governance Committee for information.

The WAO representative introduced the report which set out a summary of the key outcomes from WAO’s certification work on the Council’s 2014/15 grants and returns and was for the internal use of Denbighshire County Council. 

The report summarised the key findings and recommendations arising from this work, and indicated that the Council had adequate arrangements in place for the production and submission of the 2014/15 grant claims.  The main adjustment identified related to the Housing Revenue Account Subsidy.  The CA confirmed that the amendment of £78,791 had been identified by Welsh Government after the claim was initially signed off by the WAO.  As indicated in the report this figure related to the 2013/14 claim and therefore was a timing issue between financial years and did not result in a loss of subsidy to the Council.

It was explained that Grant Funding was vital in funding expenditure in areas such as education and schools, highways and the environment and regeneration.  The WAO report helped to give assurance that there were adequate arrangements in place within the Council to administer the grant process. 

The WAO Representative provided background detail to the recommendations arising from the work undertaken which related to R1 on Page 12 of the report, the Flying Start Revenue Grant (FSRG), and R2 which recommended that the Council must ensure that all staff with responsibility for opening and appraising tenders and subsequently awarding contracts, fully comply with the Council’s Contract Procedure Rules.  The CA provided details of the changes to the regulations in relation to the FSRG, and referred to the difficulties encountered in obtaining written confirmation of verbal agreements received from Welsh Government.  It was agreed that steps taken to address the problem would be monitored and the outcome presented to the Committee.  Concerns were expressed by Members of the Committee regarding the failure to locate the signed copy of the respective contract.  The CA provided confirmation that with regard to R2, a new set of Contract Procurement Rules and forms had been introduced, together with, an extensive training programme. 

Details of the fees for work undertaken by the WAO in respect of the certification of grants and returns for 2014-15 had been included in the report, and were an existing budget commitment for the Authority.  The WAO report on the Council’s grants and returns was for internal use by the Council in order to help focus on any areas of risk or weakness.  The report concluded that Council had adequate arrangements in place, and recommendations and comments had been reviewed and acted upon where possible.

Following further discussion the Committee expressed the view that the implementation of the new Contract Procedure and Procurement Rules, and extensive training programme, would assist in addressing the concerns which had been identified and noted by the Committee. 

RESOLVED – that, subject to the above, the Corporate Governance Committee receive the report and note the recommendation by the WAO.

     (RW, SG to Action)