Agenda item
Financial Compliance Report including progress update on Statements of Accounts
Minutes:
Members were informed that the Accounting Policies Report before the Committee provided details of the financial governance framework under which the Council operated and the legislative reporting requirements for reporting to central government in respect of financial compliance.
One of the legislative reporting requirements the Council had not met was the
delivery of the 2020/21 Statement of Accounts. As such, the Council was issued with a Section 24 Statement.
The Committee was informed that a requirement was now in place for the Council to publish any spending that exceeds £500 on a monthly basis.
It was reported that 83 staff members attended the 2022-23 Budget Manager Closure training at the end of March which represented a positive level of engagement in the budget process from the organisation.
It was noted that the Council’s 2023/24 Budget was approved in February. Budgets were now loaded and a draft budget book was being prepared to assist in Members understanding the Budget. In terms of the budget process, Members were informed that a provisional outturn report would be presented to Cabinet at its July meeting.
In terms of the Council’s financial system, TechnologyOne, it was reiterated that Bromsgrove and Redditch were the only authorities in the UK using the company’s cash receipting solution. It was further reported that an upgrade to the TechnologyOne system would be taking place from version 2023B to 2023A.
Following the Financial Compliance Report presentation, Members asked a number of questions to which the following responses were provided:
· It was highlighted that the Council developed the bespoke financial system solution for the Council jointly with TechnologyOne, including the cash receipting solution, and that the company partly refunded the Council in the fall of 2021.
· The cash receipting solution originally operated under 1 back office but a problem developed as there were 3 separate entities (Bromsgrove District Council, Redditch Borough Council, Rubicon Leisure) to which transactions needed to be assigned. It was reported that there were now 3 separate back offices in place on the system.
· It was noted that the Council decided not to implement the HR/payroll part of the TechnologyOne Enterprise Resource Management (ERP).
· In terms of lessons learned, it was explained that a Bromsgrove Audit Task Group was set up in response to the Council being issued with a Section 24 Statement and this Group had made a number of recommendations to address the failures identified with the ERP system implementation and to improve the Council’s future project delivery. One of the Audit Task Group’s recommendations that had now been implemented was the creation of a permanent Project Management Office. This would support the delivery of a full range of projects undertaken by the Council.
· Members questioned how residents could be reassured that the Council continued to deliver value for money and used its resources to the best effect, in the light of the Section 24 Statement issued to the Council in October 2022. Officers responded that the Council needed to be more proactive in communicating with the public on its financial position, highlighting strengths as well as challenges. It was also noted that substantial efforts continued to be made to make Council spending as transparent as possible – for example, with all staff being required to raise purchase orders regardless of the procurement value.
RESOLVED that:
1) The Accounting Policies being used, their source and associated
Governance Arrangements be noted;
2) This report come to each Audit, Standards and Governance Committee
meeting to alert Members to possible no compliance issues;
3) That progress on the 2020/21 Audit process be noted.
Supporting documents:
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