Issue - meetings

This report sets out the breaches and waivers of Financial Regulations (the Regulations) which have occurred during the 2022/23 financial year.

Whilst no breaches of Financial Regulations is the preferable position, the relatively low number of breaches suggests a good level of understanding of the requirements amongst managers and officers in the majority of service directorates and has resulted in general compliance with the 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

The Chief Finance Officer, or formally delegated representatives, have agreed 47 waivers totalling £3.2m.

For 2022/23, the lower number (47) of approved waivers shows a reassuring drop from the exceptional covid19 impacted 2020/21 year (116) and the partially covid impacted 2021/22 year (77). 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.

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 Committee received a report of breaches and waivers of Financial Regulations (the Regulations) during the 2022/23 financial year. The Chief Finance Officer, or his formally delegated representatives, was reported to have agreed 47 waivers totalling £3.2m. Individual waivers were set out in the appendix to the report and the number of agreed waivers had dropped reassuringly in comparison to the, exceptional, covid-impacted year of 2021/22. In addition, significantly less Council expenditure was now subject to an approved waiver, which meant that a greater part of Council total expenditure was subject to the full requirements of the Council’s Financial Regulations.

Breeches of financial Regulations were also reported for the Committee and, whilst no breeches at all was accepted as the preferable position, the relatively low number of breaches suggested a good level of understanding of the requirements. Arrangements were also reported to be in place to detect instances of possible non-compliance and a robust programme of training was also currently being delivered targeting initially high risk areas but with the aspiration to spread training wider across the Council.

In response to questions about a specific breach within the Destination and Culture area (Br11), the Committee was advised that investigations were underway and the outcomes, once clear, of that investigation would be specifically reported to the Committee.

RESOLVED that the Audit and Governance Committee notes the breaches and waivers of Financial Regulations that occurred during 2022/23.

Voting: Unanimous