Issue - meetings

This report sets out the breaches and waivers of Financial Regulations (the Regulations) which have occurred during the 2021/22 financial year and highlights the following:

The low number of breaches indicate that there was generally a good level of understanding of the Regulations.

The Chief Finance Officer, or formally delegated representatives, agreed 77 waivers totalling £6.3M.

It was reported this time last year, for 2020/21, that the higher number of waivers, compared to 2019/20, was materially due to the impact of covid19. During the pandemic, particularly the early stages in the spring and summer of 2020, the number of ‘Limited supplier’ waivers (did not invite or could not obtain 3 quotes or tenders) increased because a significant number of suppliers were asked but could not supply a quote, or supply the goods, services or works to the Council. Some suppliers closed completely as a result of the Government’s ‘furlough’ scheme whilst others were running at reduced capacity.

The lower number (77) of approved waivers in 2021/22 shows a reassuring drop from the exceptional covid19 impacted 2020/21 year (116). The comparison by £ value is more reassuring again as significantly less Council expenditure is now subject to an approved waiver, this means that a greater proportion of the Council’s total expenditure is subject to the full requirements set out in the Council’s Financial Regulations.

Whilst full compliance can never be guaranteed and ‘under-reporting’ of breaches, in particular, is an inherent possibility, arrangements were in place to detect instances of non-compliance.

An effective and transparent breaches and waiver governance process maximises the chances of the Council achieving value for money and complying with UK Procurement Legislation (Public Contract Regulations 2015 (PCR15)) principles when procuring goods, services or works under PCR15 thresholds.

The Head of Audit and Management Assurance presented a report, a copy of which had been circulated to each Member and a copy of which appears as Appendix 'G' to these Minutes in the Minute Book.

The report set out the breaches and waivers of Financial Regulations (the Regulations) which had occurred during the 2021/22 financial year presented by way of comparison with previous years. The Chief Finance Officer, or formally delegated representatives, were reported to have agreed 77 waivers totalling £6.3M.

Individual waivers were set out in the appendix to the report and the low number of breaches was indicative of a generally good level of understanding of the Regulations.

Specific details could be available for individual members of the Committee seeking more information.

In the meantime, a required typographical correction was noted in the title of the description of Breach Reference Br1. It was also suggested, and accepted, that within the appendix listing individual waivers the term ‘did not invite or could not obtain’ should be separated out in order to provide greater clarity.

RESOLVED that the Audit and Governance Committee notes the breaches and waivers of Financial Regulations that occurred during 2021/22.

Voting: Unanimous