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15 February 2025
In my blog of 19 November 2024, I looked at the system for providing external audit to parish councils and how parish councils can get away with pretty well anything.
I had already made a formal objection in July 2024 to the external auditor against the 2023/4 accounts of Hughenden Parish.
This is an update about my objection – boring but this is what it takes to get anywhere in holding a parish council to account.
It took the external auditor, PK Littlejohn, 11 weeks, until 25 September, to tell me that most of the matters I raised were eligible. It should have taken a week.
It took PK Littlejohn another 4 months until 15 January to tell me that 13 of the eligible matters I raised had been accepted for further investigation/action on the “grounds of public interest”. It should have taken a month.
These are the 13 matters:-
1.The Council’s failure to appoint an RFO and the fact that some aspects of the RFO role were carried out by the Chair, other councillors, a contractor and the locum clerk during the year.
2. The Council’s failure to ensure that the RFO had determined a system of financial controls as required under Regulation 4 of the Accounts and Audit Regulations 2015.
3. The Council’s failure to regularly review bank reconciliations.
4. The Council’s failure to properly manage investment funds or put in place an approved investment strategy.
5. The Council’s failure to carry out adequate budget monitoring during the year and at the year end.
6. The Council’s failure to prepare and approve the 2024/25 budget before the precept was set on 16 January 2024 at a full Council meeting.
7. The Council’s failure to have a general reserve policy or to have reviewed its earmarked reserves during the year.
8. The Council’s failure to comply with the Health & Safety at Work Act 1974 in respect of playgrounds.
9. The Council’s failure to comply with the Freedom of Information Act 2000 – 3 breaches are under investigation by the ICO.
10. The Council’s failure to comply with section 127 of the Local Government Act 1972 in respect of the lease of land and buildings to the Great Kingshill Cricket Club.
11. The Council’s poor procedures and lack of action during the year to ensure that it acted within its powers and complied with statutory regulations and proper practices.
12. The Council’s failure to consider the recommendations of the playground inspection reports and the implications of the possible invalidation of its insurance.
13. The level of reserves at the year-end (£453k) which I asserted were too high without explanation.
Three of the matters I raised were not accepted. This was because these matters fell under assertions in the Council’s statutory annual statements where the Council had already acknowledged that it had failed to comply.
However, as the Council had provided no explanation for this failure, as it is required to do by law, PK Littlejohn said it was “minded to raise a reporting matter concerning this issue in our external auditor report on the 2023/24 AGAR.”
These 3 matters are:-
1. The lack of confidence in the Accounting Statements due to failures of financial management and inadequate internal controls, e.g. the Council’s failure to receive invoices and approve payments for the last six months of the year.
2. The Council’s failure to provide the draft or amended Accounting Statements to Members in adequate time before the approval meeting or to explain the changes, e.g. the inclusion of CIL transactions and grant payments; and
3. The Council’s failure to consider the implications of the lack of internal controls.
The first 13 matters were sent to Mr Truppin on 15 January 2025 with the evidence I provided to back my objection.
He was asked to “collate and take to a full Council meeting for approval the Council’s formal response to the accepted objections along with relevant supporting documentation (or links to it).
I informed councillors about PK Littlejohn’s e-mail (just in case it had gone astray).
The deadline for a response is 28 February 2025 although this can be “flexed” to fit in with Council’s scheduled meetings.
PK Littlejohn should complete this stage within 6 months. If this is done, it will have taken a year from my objection in July 2024.
Based on past performance, I’m not holding my breath.
In my blog of 19 November 2024, I concluded that the system for external audit:-
· was very limited, very slow, and had very limited sanctions;
· did not protect taxpayers' money or hold anyone to account; and
· was not value for money.
I haven’t changed my mind.
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