Agenda item

Gareth Mills, Director, Grant Thornton, introduced the item noting that this was a positive report overall for Barnsley, and that there were a number of recommendations. 

In relation to financial sustainability, it was noted that one potential area of weakness had been identified in the issued audit plan which related to the Dedicated Schools Grant (DSG). However, the annual report noted that there were no areas of significant weakness in arrangements related to this, but a number of improvement recommendations had been made in this area.

In terms of governance, no risks of significant weaknesses had been identified, but a number of improvement recommendations had been made.

In relation to improving economy, efficiency and effectiveness, one risk of significant weakness had been identified and a key recommendation made, alongside some improvement recommendations.  It was acknowledged that the audit code requires the consideration of the reports of other regulators and the key recommendation related to the area highlighted by the Ofsted and CQC inspection.

In relation to financial sustainability, the level of savings required were smaller than similar sized local authorities, which reflected the difficult decisions already taken by the Council.  With regards to borrowing, Barnsley had a higher proportion than similar councils, but this reflected the regeneration in the town centre and the Glassworks project, and this had resulted in one of the improvement recommendations to prudently monitor cash flows and repay borrowings without any significant impact on key services. A further recommendation in the section suggested that the actions and outcomes of the DSG deficit reduction plans should be reported to the Audit and Governance Committee.

With regards to governance, the report was positive and suggested four improvement recommendations relating to fraud awareness of all staff, instigating a formal process of sharing the strategic risk register with cabinet, sharing the financial performance reports associated with the Glassworks to both Cabinet and the Audit and Governance Committee, and making improvements to the Members register of gifts and hospitality and their register of interest.

Section 7 of the report referred to improving economy, efficiency and effectiveness and contained a key recommendation as a result of Ofsted and CQC SEND inspection.

With regards to the final section of the report which considered Covid-19 arrangements, no significant issues had been highlighted and no recommendations made.

Members raised questions in relation to the DSG, and it was noted that the deficit was still rising but a deficit reduction plan was in place over the long term.  It was envisaged that the structural deficit would be eliminated in 2024/25.  Members heard that conversations were currently taking place with government about how to fund the cumulative deficit, which currently could not be covered by the general fund.

A question was raised with regard to benchmarking of Critical Success Factors, and it was noted that whilst some benchmarking did take place within the authority, this could be more systemic, and this was being taken forward as an action.

RESOLVED:-

i)     That thanks be given to the staff in finance and to the external auditor for the efforts that led to the report;

ii)    That the Auditor’s Annual Report be noted.