Agenda Item No
The Vale of Glamorgan Council
Audit Committee: 17 September 2012
Report of the Managing Director
Certification of Grants and Returns 2010-11
Purpose of the Report
1. To present the Council's External Auditor's report on the Grant work undertaken for 2010-11.
That Audit Committee:
1. Review and note the content of this Report
Reasons for the Recommendations
1. To facilitate monitoring of the audit function.
2. The Council received and certified 23 grant claims and returns from government departments and other bodies requiring external audit certification in 2010-11, supporting income in excess of £113 million.
3. Grant Thornton UK LLP (GT), as the Council's external auditors and acting agents of the Wales Audit Office (WAO), is required to certify the claims submitted by the Council. This certification typically takes place some 6 - 12 months after the claim period and represents a final but important part of the process to confirm the Council's entitlement to funding.
4. This report summarises the External Auditor's overall assessment of the Council's management arrangements in respect of the certification process and draws attention to significant matters in relation to individual claims.
Relevant Issues and Options
5. A summary of all claims and returns subject to certification is provided within the report attached at Appendix A, together with the certification fee and outcome of the External Auditor's review. The key message from the review is that whilst the Council has generally adequate arrangements in place for the production and submission of its 2010-11 grant claims, the External Auditors have concluded that there is scope for improvement. These improvements include:
Consider training for those individuals having responsibility within their departments for letting contracts (however small) to ensure that they are aware of the correct procedures to be followed;
The implementation of additional procedures to ensure that individual grant scheme rules are always adhered to throughout the Authority;
The implementation of systems and controls to ensure that where grant is passed to a third party to spend, that the organisation is complying with grant scheme rules by keeping adequate records of expenditure.
Resource Implications (Financial and Employment)
6. As detailed in the body of the report.
Sustainability and Climate Change Implications
7. None directly from this report.
Legal Implications (to Include Human Rights Implications)
8. Under Paragraph 20 of Schedule 8 to the Government of Wales Act 2006 the Auditor General shall, if required by a local government or other grant-receiving body, make arrangements for certifying claims and returns.
Crime and Disorder Implications
9. None directly from this report.
Equal Opportunities Implications (to include Welsh Language issues)
10. None directly from this report.
11. This report is consistent with the Council's corporate objectives to ensure effective management of resources.
Policy Framework and Budget
12. This report is in accordance with the policy framework and budget.
Consultation (including Ward Member Consultation)
13. No further consultation is proposed.
Relevant Scrutiny Committee
14. Corporate Resources
Alan Jenkins - Head of Accountancy and Resource Management
Corporate Management Team
Head of Accountancy and Resource Management
Sian Davies, Managing Director