Governance fails at Kirby Muxloe Parish Council
News release
Issued: 30 April 2013
Embargoed until 00.01am BST Wednesday 1 May 2013
Governance fails at Kirby Muxloe Parish Council
Failures in corporate governance at Kirby Muxloe Parish Council, for the financial year ended 31 March 2012, are highlighted in a public interest report issued today (1 May 2013) by their independently appointed external auditor.
The report, Kirby Muxloe Parish Council: 2011/12: Report in the Public Interest, finds that the Council told the public it had effective arrangements for corporate governance in place, when it did not. The external auditor reports that the Council:
• had inadequate arrangements for preparing its accounting statements;
• failed to establish an effective system of internal control;
• did not comply with laws, regulations or codes of practice in a number of cases;
• may not have compiled with its statutory duties to give the public access to its accounts and supporting information;
• failed to undertake a review of significant risks or the arrangements to address those risks;
• failed to consider the detailed findings of its the internal auditor prior to adopting the annual governance statement; and
• failed to disclose assets it held in trust and did not meet its responsibilities for them.
The auditor, Stephen Warren, said: ‘Good governance is central to the Council’s ability to account for the proper use of public funds. In particular, the annual governance statement is a key mechanism by which the Council can be held accountable to the public. But, making statements that are inaccurate, or unsupported by appropriate enquiry, undermines that accountability. I am aware that the Council operates in an environment of challenge and conflict. But in such an environment it is even more important that the Council not only conducts its business in the right way, but also takes its responsibilities seriously and demonstrates to the public that it has done so.’
The report was prepared following representations from local electors and after enquiries were made by the auditor. It sets out a series of recommendations to be considered by the Council. These include developing robust arrangements for the Council’s governance and improved training for councillors and officers. The Council is required to discuss the report at a public meeting held within one month of its publication.
Further information and the report can be found on the Audit Commission website at: www.audit-commission.gov.uk/audit-regime/audit-reports
ENDS
Notes to editors
1. No further public statement will be made by the external auditor until the Council has had an opportunity to discuss the report at the public meeting.
2. The duties and powers of auditors appointed by the Audit Commission are set out in the Audit Commission Act 1998 and the Local Government Act 1999 and the Commission’s Statutory Code of Audit Practice.
3. Appointed auditors act quite separately from the Commission and are required to exercise their professional judgement independently of both the Commission and the audited body.
4. Under Section 8 of the Audit Commission Act 1998, the appointed auditors are required to consider whether to issue a report in the public interest, on any significant matter coming to their notice in the course of an audit, to bring it to the notice of the audited body and the public.
5. Under Section 16 of the Audit Commission Act 1998, local government electors have the right to make objections asking the auditor to exercise their formal powers, including the issue of a report in the public interest – under Section 8 of the 1998 Act.
6. The Audit Commission is a public corporation set up in 1983 to protect the public purse. The Commission appoints auditors to councils, NHS bodies (excluding NHS Foundation trusts), police bodies and other local public services in England, and oversees their work.
7. In August 2010, the government announced plans to close down the Audit Commission and put in place new arrangements for auditing England’s local public bodies.
8. Further details about the role of the Audit Commission can be obtained from www.audit-commission.gov.uk
For more information please contact:
Nick Rigg, Communications manager
Audit Commission
1st Floor, Millbank Tower, London, SW1P 4HQ
Direct line: 0303 444 8284 Mobile: 07970 906 112
Press office: 0303 444 8282 Fax: 020 7828 5594