Top

Top

Agenda Item No 5

The Vale of Glamorgan Council

 

Audit Committee: 25th April 2016

 

Report of the Managing Director

 

Financial Resilience Assessment

 

Purpose of the Report

  1. To present to Members the Auditor General for Wales Financial Resilience Assessment on the Vale of Glamorgan Council.

Recommendation

That Audit Committee:

 

  1. Formally consider and endorse the Financial Resilience Assessment and refer to Cabinet for approval.

Reason for the Recommendation

To facilitate monitoring of the Audit Function.

Background

  1. In addition to the Auditor General for Wales's annual programme of audit and assessment work, he also undertakes a programme of Local Government Studies, normally consisting of three studies every year.
  2. As part of the programme of work; the Wales Audit Office has completed a Financial Resilience Assessment of the Vale of Glamorgan Council on behalf of the Auditor General for Wales.

Relevant Issues and Options

  1. The Financial Resilience Report is attached at Appendix A and summarises the key issues arising from the assessment work carried out during the period May to October 2015. Financial resilience is achieved when an authority has robust systems and processes to effectively manage its financial risks and opportunities, and to secure a stable financial position. The assessment's aim was to answer the following question:

Is the Vale of Glamorgan Council managing budget reductions effectively to ensure financial resilience?

Taking into consideration whether:

Financial planning arrangements effectively support financial resilience;

Financial control effectively supports financial resilience; and

Financial governance effectively supports financial resilience.

  1. The main focus of the work was on delivery of 2014-15 savings plans, and the 2015-16 financial planning period.
  2. Overall the report concludes that "the Council's financial arrangements are effective but savings plans need to be developed in more detail for future years". This conclusion was based on the findings in relation to financial planning, financial control and financial governance arrangements.
  3. In addition, the report gives a risk rating for each aspect;

Financial planning - Medium Risk - Some shortcomings in systems, processes or information that may affect the ability to deliver the desired outcomes of its financial plan.

Financial control - Low Risk - Arrangements are adequate (or better) with few shortcomings in systems, processes or information. Impact on the ability to deliver its financial plan may be minimal.

 Financial governance - Low Risk - As above.

Resource Implications (Financial and Employment)

  1. None directly from this report

Sustainability and Climate Change Implications

  1. None directly from this report.

Legal Implications (to Include Human Rights Implications)

  1. Local authorities in Wales prepare their accounting statements in accordance with the requirements of the CIPFA/LASAAC Code of Practice on Local Authority Accounting in the United Kingdom.

Crime and Disorder Implications

  1. None directly from this report.

Equal Opportunities Implications (to include Welsh Language issues)

  1. None directly from this report.

Corporate/Service Objectives

  1. This report is consistent with the Council's corporate objectives to ensure effective management of resources.

Policy Framework and Budget

  1. The proposals in this report do not contravene the policy framework and budget.

Consultation (including Ward Member Consultation)

  1. No further consultation is proposed.

Relevant Scrutiny Committee

  1. Corporate Resources

Background Papers

None.

Contact Officer

Carys Lord Head of Finance and Section 151 Officer

Officers Consulted

Corporate Management Team

Responsible Officer:

Rob Thomas, Managing Director

 

Share on facebook Like us on Facebook