Fill - Free fillable NOTICE OF PUBLIC RIGHTS AND PUBLICATION OF UNAUDITED PDF form

Smaller authority name: OVERSEAL PARISH COUINCIL

NOTICE OF PUBLIC RIGHTS AND PUBLICATION

OF UNAUDITED ANNUAL GOVERNANCE &

ACCOUNTABILITY RETURN

ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2020

Local Audit and Accountability Act 2014 Sections 25, 26 and 27

The Accounts and Audit Regulations 2015 (SI 2015/234)

The Accounts and Audit (Coronavirus) (Amendment) Regulations 2020 (SI 2020/404)

NOTICE

NOTES

1. Date of announcement (a) 1 June 2020

2. Each year the smaller authority’s Annual Governance and Accountability

Return (AGAR) needs to be reviewed by an external auditor appointed by

Smaller Authorities’ Audit Appointments Ltd. The unaudited AGAR has been

published with this notice. As it has yet to be reviewed by the appointed auditor,

it is subject to change as a result of that review.

Any person interested has the right to inspect and make copies of the

accounting records for the financial year to which the audit relates and all

books, deeds, contracts, bills, vouchers, receipts and other documents relating

to those records must be made available for inspection by any person

interested. For the year ended 31 March 2020, these documents will be available

on reasonable notice by application to:

(b) Mr J E White, Clerk to Overseal Parish Council, email: clerk@overseal.org,

tel: 01530 415289

commencing on (c) __Monday 15 June 2020 _______________________

and ending on (d) ___Friday 24 July 2020 ________________________

3. Local government electors and their representatives also have:

• The opportunity to question the appointed auditor about the accounting

records; and

• The right to make an objection which concerns a matter in respect of which

the appointed auditor could either make a public interest report or apply to

the court for a declaration that an item of account is unlawful. Written notice

of an objection must first be given to the auditor and a copy sent to the

smaller authority.

The appointed auditor can be contacted at the address in paragraph 4 below for

this purpose between the above dates only.

4. The smaller authority’s AGAR is subject to review by the appointed auditor

under the provisions of the Local Audit and Accountability Act 2014, the

Accounts and Audit Regulations 2015 and the NAO’s Code of Audit Practice

2015. The appointed auditor is:

PKF Littlejohn LLP (Ref: SBA Team)

15 Westferry Circus

Canary Wharf

London E14 4HD

(sba@pkf-littlejohn.com)

5. This announcement is made by (e) Mr J E White, Clerk to Overseal Parish

Council

(a) Insert date of placing of the notice

which must be not less than 1 day before

the date in (c) below

(b) Insert name, position and

address/telephone number/ email

address, as appropriate, of the Clerk or

other person to which any person may

apply to inspect the accounts

day after the date of announcement in (a)

above and at least 30 working days

before the date appointed in (d) below

(d) The inspection period between (c)

and (d) must be 30 working days

inclusive and must start on or before 1

September 2020.

(e) Insert name and position of person

placing the notice – this person must be

the responsible financial officer for the

smaller authority

LOCAL AUTHORITY ACCOUNTS: A SUMMARY OF YOUR RIGHTS

Please note that this summary applies to all relevant smaller authorities, including local

councils, internal drainage boards and ‘other’ smaller authorities.

The basic position

The Local Audit and Accountability Act 2014 (the Act) governs the work of auditors appointed to smaller

authorities. This summary explains the provisions contained in Sections 26 and 27 of the Act. The Act,

the Accounts and Audit Regulations 2015 and the Accounts and Audit (Coronavirus) (Amendment)

Regulations 2020 also cover the duties, responsibilities and rights of smaller authorities, other

organisations and the public concerning the accounts being audited.

As a local elector, or an interested person, you have certain legal rights in respect of the accounting

records of smaller authorities. As an interested person you can inspect accounting records and related

documents. If you are a local government elector for the area to which the accounts relate you can also

ask questions about the accounts and object to them. You do not have to pay directly for exercising

your rights. However, any resulting costs incurred by the smaller authority form part of its running costs.

Therefore, indirectly, local residents pay for the cost of you exercising your rights through their council

tax.

The right to inspect the accounting records

Any interested person can inspect the accounting records, which includes but is not limited to local

electors. You can inspect the accounting records for the financial year to which the audit relates and all

books, deeds, contracts, bills, vouchers, receipts and other documents relating to those records. You

can copy all, or part, of these records or documents. Your inspection must be about the accounts, or

relate to an item in the accounts. You cannot, for example, inspect or copy documents unrelated to the

accounts, or that include personal information (Section 26 (6) – (10) of the Act explains what is meant

by personal information). You cannot inspect information which is protected by commercial

confidentiality. This is information which would prejudice commercial confidentiality if it was released to

the public and there is not, set against this, a very strong reason in the public interest why it should

nevertheless be disclosed.

When smaller authorities have finished preparing accounts for the financial year and approved them,

they must publish them (including on a website). There must be a 30 working day period, called the

‘period for the exercise of public rights’, during which you can exercise your statutory right to inspect

the accounting records. Smaller authorities must tell the public, including advertising this on their

website, that the accounting records and related documents are available to inspect. By arrangement

you will then have 30 working days to inspect and make copies of the accounting records. You may

have to pay a copying charge. Legislative changes have been made as a result of the restrictions

imposed by the Coronavirus for the 2019/20 reporting year which mean that there is no

requirement for a common period for public rights. The period for the exercise of public rights

must however commence on or before 1 September 2020. The advertisement must set out the dates

of the period for the exercise of public rights, how you can communicate to the smaller authority that

you wish to inspect the accounting records and related documents, the name and address of the auditor,

and the relevant legislation that governs the inspection of accounts and objections.

The right to ask the auditor questions about the accounting records

You should first ask your smaller authority about the accounting records, since they hold all the

details. If you are a local elector, your right to ask questions of the external auditor is enshrined in law.

However, while the auditor will answer your questions where possible, they are not always obliged to

do so. For example, the question might be better answered by another organisation, require

investigation beyond the auditor’s remit, or involve disproportionate cost (which is borne by the local

taxpayer). Give your smaller authority the opportunity first to explain anything in the accounting records

that you are unsure about. If you are not satisfied with their explanation, you can question the external

auditor about the accounting records.

The law limits the time available for you formally to ask questions. This must be done in the period for

the exercise of public rights, so let the external auditor know your concern as soon as possible. The

advertisement or notice that tells you the accounting records are available to inspect will also give the

period for the exercise of public rights during which you may ask the auditor questions, which here

means formally asking questions under the Act. You can ask someone to represent you when asking

the external auditor questions.

Before you ask the external auditor any questions, inspect the accounting records fully, so you know

what they contain. Please remember that you cannot formally ask questions, under the Act, after the

end of the period for the exercise of public rights. You may ask your smaller authority other questions

about their accounts for any year, at any time. But these are not questions under the Act.

You can ask the external auditor questions about an item in the accounting records for the financial

year being audited. However, your right to ask the external auditor questions is limited. The external

auditor can only answer ‘what’ questions, not ‘why’ questions. The external auditor cannot answer

questions about policies, finances, procedures or anything else unless it is directly relevant to an item

in the accounting records. Remember that your questions must always be about facts, not opinions. To

avoid misunderstanding, we recommend that you always put your questions in writing.

The right to make objections at audit

You have inspected the accounting records and asked your questions of the smaller authority. Now you

may wish to object to the accounts on the basis that an item in them is in your view unlawful or there

are matters of wider concern arising from the smaller authority’s finances. A local government elector

can ask the external auditor to apply to the High Court for a declaration that an item of account is

unlawful, or to issue a report on matters which are in the public interest. You must tell the external

auditor which specific item in the accounts you object to and why you think the item is unlawful, or why

you think that a public interest report should be made about it. You must provide the external auditor

with the evidence you have to support your objection. Disagreeing with income or spending does not

make it unlawful. To object to the accounts you must write to the external auditor stating you want to

make an objection, including the information and evidence below and you must send a copy to the

smaller authority. The notice must include:

• confirmation that you are an elector in the smaller authority’s area;

• why you are objecting to the accounts and the facts on which you rely;

• details of any item in the accounts that you think is unlawful; and

• details of any matter about which you think the external auditor should make a public interest

report.

Other than it must be in writing, there is no set format for objecting. You can only ask the external auditor

to act within the powers available under the Local Audit and Accountability Act 2014.

A final word

You may not use this ‘right to object’ to make a personal complaint or claim against your smaller

authority. You should take such complaints to your local Citizens’ Advice Bureau, local Law Centre or

to your solicitor. Smaller authorities, and so local taxpayers, meet the costs of dealing with questions

and objections. In deciding whether to take your objection forward, one of a series of factors the auditor

must take into account is the cost that will be involved, they will only continue with the objection if it is

in the public interest to do so. They may also decide not to consider an objection if they think that it is

frivolous or vexatious, or if it repeats an objection already considered. If you appeal to the courts against

an auditor’s decision not to apply to the courts for a declaration that an item of account is unlawful, you

will have to pay for the action yourself.

For more detailed guidance on public rights and

the special powers of auditors, copies of the

publication Local authority accounts: A guide to

your rights are available from the NAO website.

If you wish to contact your authority’s appointed

external auditor please write to the address in

paragraph 4 of the Notice of Public Rights and

Publication of Unaudited Annual Governance &

Accountability Return.

Annual Governance and Accountability Return 2019/20 Part 3

To be completed by Local Councils, Internal Drainage Boards and

other Smaller Authorities*:

• where the higher of gross income or gross expenditure exceeded £25,000

but did not exceed £6.5 million; or

• where the higher of gross income or gross expenditure was £25,000

or less but that:

• are unable to certify themselves as exempt (fee payable); or

• have requested a limited assurance review (fee payable)

Guidance notes on completing Part 3 of the Annual Governance and

Accountability Return 2019/20

1. Every smaller authority in England that either received gross income or incurred gross expenditure

exceeding £25,000 must complete Part 3 of the Annual Governance and Accountability Return at

the end of each nancial year in accordance with Proper Practices.

2. The Annual Governance and Accountability Return is made up of three parts, pages 3 to 6:

• The Annual Internal Audit Report is completed by the authority’s internal auditor.

• Sections 1 and 2 are to be completed and approved by the authority.

• Section 3 is completed by the external auditor and will be returned to the authority.

3. The authority must approve Section 1, Annual Governance Statement, before approving Section 2,

Accounting Statements, and both must be approved and published before 1 July 2020.

4. An authority with either gross income or gross expenditure exceeding £25,000 or an authority with

neither income nor expenditure exceeding £25,000, but which is unable to certify itself as exempt, or is

requesting a limited assurance review, must return to the external auditor by email or post (not both) no

later than 30 June 2020. Reminder letters will incur a charge of £40 +VAT:

• the Annual Governance and Accountability Return Sections 1 and 2, together with

• a bank reconciliation as at 31 March 2020

• an explanation of any signicant year on year variances in the accounting statements

• notication of the commencement date of the period for the exercise of public rights

• Annual Internal Audit Report 2019/20

Unless requested, do not send any additional documents to your external auditor.

Your external auditor will

ask for any additional documents needed.

Once the external auditor has completed the limited assurance review and is able to give an opinion, the

Annual Governance and Accountability Section1, Section 2 and Section 3 – External Auditor Report

and Certicate will be returned to the authority by email or post.

Publication Requirements

Under the Accounts and Audit Regulations 2015, authorities must publish the following information on

a publicly accessible website:

Before 1 July 2020 authorities must publish:

• Notice of the period for the exercise of public rights and a declaration that the accounting statements

are as yet unaudited;

• Section 1 - Annual Governance Statement 2019/20, approved and signed, page 4

• Section 2 - Accounting Statements 2019/20, approved and signed, page 5

Not later than 30 September 2020 authorities must publish:

• Notice of conclusion of audit

• Section 3 - External Auditor Report and Certicate

• Sections 1 and 2 of AGAR including any amendments as a result of the limited assurance review.

It is recommended as best practice, to avoid any potential confusion by local electors and interested

parties, that you also publish the Annual Internal Audit Report, page 3.

Page 1 of 6Annual Governance and Accountability Return 2019/20 Part 3

Local Councils, Internal Drainage Boards and other Smaller Authorities*

The Annual Governance and Accountability Return constitutes the annual return referred to in the Accounts and Audit Regulations 2015.

Throughout, the words ‘external auditor’ have the same meaning as the words ‘local auditor’ in the Accounts and Audit Regulations 2015.

*for a complete list of bodies that may be smaller authorities refer to schedule 2 to the Local Audit and Accountability Act 2014.

Page 2 of 6

Guidance notes on completing Part 3 of the Annual Governance and

Accountability Return 2019/20

• The authority must comply with Proper Practices in completing Sections 1 and 2 of this Annual Governance and

Accountability Return. Proper Practices are found in the Practitioners’ Guide* which is updated from time to time

and contains everything needed to prepare successfully for the nancial year-end and the subsequent work by

the external auditor.

• Make sure that the Annual Governance and Accountability Return is complete (no highlighted boxes left empty),

and is properly signed and dated. Where amendments are made by the authority to the AGAR after it has

been approved by the authority and before it has been reviewed by the external auditor, the Chairman and

RFO should initial the amendments and if necessary republish the amended AGAR and recommence the

period for the exercise of public rights. If the AGAR contains unapproved or unexplained amendments, it may

be returned and additional costs will be incurred.

• The authority should receive and note the annual internal audit report if possible before approving the annual

governance statement and the accounts.

• Use the checklist provided below to review the Annual Governance and Accountability Return for completeness

before returning it to the external auditor by email or post (not both) no later than 30 June 2020.

• Do not send the external auditor any information not specically requested. However, you must inform your

external auditor about any change of Clerk, Responsible Financial Ofcer or Chairman, and provide

relevant email addresses and telephone numbers.

• Make sure that the copy of the bank reconciliation to be sent to your external auditor with the Annual Governance

and Accountability Return covers all the bank accounts. If the authority holds any short-term investments, note their

value on the bank reconciliation. The external auditor must be able to agree the bank reconciliation to Box 8 on the

accounting statements (Section 2, page 5). An explanation must be provided of any difference between Box 7 and

Box 8. More help on bank reconciliation is available in the Practitioners’ Guide*.

• Explain fully signicant variances in the accounting statements on page 5. Do not just send a copy of the detailed

accounting records instead of this explanation. The external auditor wants to know that you understand the reasons

for all variances. Include complete numerical and narrative analysis to support the full variance.

• If the external auditor has to review unsolicited information, or receives an incomplete bank reconciliation, or

variances are not fully explained, additional costs may be incurred.

• Make sure that the accounting statements add up and that the balance carried forward from the previous year

(Box 7 of 2019) equals the balance brought forward in the current year (Box 1 of 2020).

• The Responsible Financial Ofcer (RFO), on behalf of the authority, must set the period for the exercise of public

rights. From the commencement date for a single period of 30 consecutive working days, the approved accounts

and accounting records can be inspected. Whatever period the RFO sets it must include a common inspection

period – during which the accounts and accounting records of all smaller authorities must be available for public

inspection – of the rst ten working days of July.

• The authority must publish the information required by Regulation 15 (2), Accounts and Audit Regulations 2015,

including the period for the exercise of public rights and the name and address of the external auditor before

1 July 2020.

Annual Governance and Accountability Return 2019/20 Part 3

Local Councils, Internal Drainage Boards and other Smaller Authorities*

Completion checklist – ‘No’ answers mean you may not have met requirements

All sections

Section 1

Section 2

Sections 1 and 2

Internal Audit Report

Have all highlighted boxes have been completed?

For any statement to which the response is ‘no’, has an explanation been published?

Has an explanation of signicant variations from last year to this year been published?

Has the bank reconciliation as at 31 March 2020 been reconciled to Box 8?

Has an explanation of any difference between Box 7 and Box 8 been provided?

Have all highlighted boxes been completed by the internal auditor and explanations provided?

Has all additional information requested, including the dates set for the period

for the exercise of public rights, been provided for the external auditor?

Trust funds – have all disclosures been made if the authority as a body corporate is a

sole managing trustee? NB: do not send trust accounting statements unless requested.

Has the authority’s approval of the accounting statements been conrmed by

the signature of the Chairman of the approval meeting?

Yes No

*Governance and Accountability for Smaller Authorities in England – a Practitioners’ Guide to Proper Practices,

can be downloaded from www.nalc.gov.uk or from www.ada.org.uk

✔

Section

Annual Governance

Statement 2019120

acknowledge as the members

gt:

our responsibility lor

enslring'ihat

lhere

is a sound system of intemal

conkol,

including

ar,angements for

the

p.epa.ation

of ihe Accounting

Statemehts.

confirm, to lhe best ofour knowledge

and belief, witl'r

respect

to the Accounting Statements

tor the

year

ended 31 March 2020, that:

*Please

provide

explanaiions

to the extemal auditoi on a sepa.ate sheel ior each No

response and desc$be how the

authodly willsddress the weaknesses

'dentified.lhese

sheels

must be

published

with lheAnnual

Govemance Slaiement-

Signed by ihe Chalman and Cletk of the meeiing where

ryW

Y*&;

1. We nave

put

piace

ada.gements fs etroclive nnandal

ma.ag@nt duri.g ihe

ye.r,

and lo. lhe

preF€tjon

rhe ac.ounnng siacmenls-

.t::;:

proparcd

ils

a@ntiag stalehbnls ih aeotdanca

wirh the Aceunts

and Audit

RegeteAans.

2. we

mainlained an adequale systom ot int6tul snl.ol

in.llding

measures

desigEd

pelenl

and deted liaud

a.d @ruplion and bviwod ils ofi€ctivsn€$.

tua&

pnpe.anargerents

and acepled esp.ndbiw

fot

.alesuadtrg the

public

noney ard resou/@s r,

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all Earcnable steps io asae ouelves

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ol actual or

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non<omplian@

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aM Fbper

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hav6

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on the ability ol f s su|llonly

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busrness or manago ils finane.

has orly dane |9hat il has the legal

powet

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prryidod propgr

opponu

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y€ar

ror

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exercis ol€loctoE dqhis in zffidanc6 wi(h the

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.lunng Eye

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pe6ons

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inspecl aftl ask

questjoas

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s. We

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cot ttls and

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an obldclirs

iaw

whethet

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responded

lo @lieF bDrgnl ro its attenll'n by ihtemal

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teat

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yeat

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atte. the

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h€ve a n ancjal

jlnpaal

this aulhority and, utwe app.6pnaF, hwe

i.dud6! d,\ed

in th. a€counting llaiements.

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lunds i.cllding

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,.6 nel €t otils Bsporsirtt es wheb,

as a body

cotp.tute, iI is a ele mahagihg

ltustee af a lacal

Annual Covernance and

Accounlabrlity

Returr 201

g/20

Parl 3

Locel Councils. Intemal Drainage Boardsand olhFrSmallerAuli'orilies'

Page

4 of 6

Section

Accounting

Statements 2019/20

for

Tolal value

af csh

and

snod ie.m

hvesirnanls

74,167

The

sun ol alt

cu,lent

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accaunts,

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padies

(inctudns

PWLB).

I confinn

thal

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Statements

were

approved

by dris authodty

on this

date:

as recorded

in minute

rcferenc€i

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by Chairman

of the msetingv/here

the Accountjnq

Annual

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Relum 20,9/20

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Page

5 of 6

Page 6 of 6

Section 3 – External Auditor Report and Certicate 2019/20

ENTER NAME OF AUTHORITY

ENTER NAME OF EXTERNAL AUDITOR

1 Respective responsibilities of the body and the auditor

This authority is responsible for ensuring that its nancial management is adequate and effective and that

it has a sound system of internal control. The authority prepares an Annual Governance and Accountability

Return in accordance with Proper Practices which:

• summarises the accounting records for the year ended 31 March 2020; and

• conrms and provides assurance on those matters that are relevant to our duties and responsibilities as

external auditors.

Our responsibility is to review Sections 1 and 2 of the Annual Governance and Accountability Return in accordance

with guidance issued by the National Audit Ofce (NAO) on behalf of the Comptroller and Auditor General

(see note below). Our work does not constitute an audit carried out in accordance with International Standards

on Auditing (UK & Ireland) and does not provide the same level of assurance that such an audit would do.

2 External auditor report 2019/20

*Note: the NAO issued guidance applicable to external auditors’ work on limited assurance reviews in Auditor

Guidance Note AGN/02. The AGN is available from the NAO website (www.nao.org.uk)

DD/MM/YYSIGNATURE REQUIRED

Date

External Auditor Name

(Except for the matters reported below)* on the basis of our review of Sections 1 and 2 of the Annual Governance and Accountability Return, in

our opinion the information in Sections 1 and 2 of the Annual Governance and Accountability Return is in accordance with Proper Practices and

no other matters have come to our attention giving cause for concern that relevant legislation and regulatory requirements have not been met.

(*delete as appropriate).

Other matters not affecting our opinion which we draw to the attention of the authority:

*We do not certify completion because:

(continue on a separate sheet if required)

3 External auditor certicate 2019/20

We certify/do not certify* that we have completed our review of Sections 1 and 2 of the Annual Governance and

Accountability Return, and discharged our responsibilities under the Local Audit and Accountability Act 2014, for

the year ended 31 March 2020.

External Auditor Signature

Annual Governance and Accountability Return 2019/20 Part 3

Local Councils, Internal Drainage Boards and other Smaller Authorities*

In respect of

OVERSEAL PARISH COUNCIL

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