Agenda item

Gareth Mills, representing the External Auditor, submitted the Auditor’s Annual Report on 2022/23 Value for Money (VFM) arrangements.

Particular reference was made to the following:

•       This was the third year that External Audit were required to assess the Council’s VFM arrangements in particular detail.

•       External Audit had downgraded the significant weakness in the Council’s SEND arrangements from a key recommendation to an improvement recommendation due to the continuing progress made by the Council in this area.

•       No areas of significant weakness had been identified which represented a good outcome for the Council.

•       Like most Local Authorities, the Council continued to experience an increased demand for services within the context of a challenging financial climate.

•       The Council had won two prestigious awards and such accolades from independent organisations provided significant recognition for the Council.

•       External Audit raised two improvement recommendations. The first one was around presenting the latest and full Strategic Risk Register to the Audit and Governance Committee (which had happened in this meeting). The second recommendation was to separate the key roles of Head of Internal Audit and Data Protection Officer to eliminate any potential conflicts of interest.

Discussion arose regarding the Council’s Asset Strategy. This was a key tenet of the Council’s Medium Term Financial Plan and looked at running costs as well as asset disposal. Any asset disposal would result in capital receipts which would be used to reduce debt levels.

Member discussion took place regarding governance and decision making at other Local Authorities and at a national level. Members were informed that section 114 notices tended to be issued at Authorities where debt had been managed poorly including having no plan to pay back borrowing and investing in volatile commercial income schemes. At Barnsley, any significant plans were discussed with External Audit to ensure appropriate governance frameworks were in place.

It was noted that £56.6m of Lender Option Borrower Option (LOBOs) were repaid in Q2 2022-24. LOBOs were potentially volatile to interest rate fluctuations therefore repaying them had reduced the Council’s exposure in this area.

RESOLVED that the Committee note the report.