Why is Wirral Council’s draft 2015/16 statement of accounts to be amended following concerns by myself and their external auditor?

Why is Wirral Council’s draft 2015/16 statement of accounts to be amended following concerns by myself and their external auditor?

Why is Wirral Council’s draft 2015/16 statement of accounts to be amended following concerns by myself and their external auditor?

                              

Tom Sault (Acting Section 151 Officer) Wirral Council at the Audit and Risk Management Committee on the 13th June 2016
Tom Sault (Acting Section 151 Officer) Wirral Council at the Audit and Risk Management Committee on the 13th June 2016

I’d perhaps better start by declaring the interest that I’m the person the letter below is to, in response to a letter I wrote to Robin Baker.

In an update to Why am I objecting to Wirral Council’s draft statement of accounts for the 2015/16 financial year? published on the 11th July 2016, I have today received a further reply (that you can read below) from Wirral Council’s auditors Grant Thornton dated 19th July 2016 which I quote from below. I’ve linked to the legislation referred to and the page of the statement of accounts that’s the issue. It seems they agree with me (although curiously don’t address the issue of bonuses too in their letter). I’ve left out some of the bits of their headed notepaper which I summarise in brackets ().

Please note the below letter I quote from was written by Robin Baker of Grant Thornton UK LLP (not myself).


Our Ref RJB/SB
Mr J Brace
Jenmaleo
134 Boundary Road
Bidston
WIRRAL
CH43 7PH

(Grant Thornton’s mailing address, telephone number, fax number and website address)

19 July 2016

Dear Mr Brace

Wirral Metropolitan Borough Council
Thank you for your letter of 10 July 2016 to me, which also includes a copy of your letter of the same date to Mr Tom Sault.

I note from your letter that you wish to raise an objection to the accounts of Wirral Metropolitan Borough Council. You identify that the draft accounts included on the Council”s website does not comply with the requirements contained within the Accounts and Audit Regulations 2015. Specifically for Category 1 authorities there is a requirements under Regulation 2(1)(a) that for employees who salary is more than £150,000 per year, that the name of the employee is included within the Senior employee remuneration table. You highlight the Council’s Chief Executive is on a salary in excess of £150,000 yet he is not named in the table at note 32 of the draft accounts. You ask us to let you know whether we will consider this objection.

As part of our audit process I have reviewed the draft financial statements prepared by the Council. My review also highlighted the omission of the name of the Chief Executive from note 32 to the draft financial statements and I asked my team to raise the matter with the Council. The Council has acknowledged that the failure to name the Chief Executive in the draft financial statements is an oversight that will be corrected in the revised financial statements that will be published before 30 September 2016.

Thank you for raising this matter with me. Given the Council acknowledges the failure to name the Chief Executive is an oversight and will be corrected, we do not consider there is a need to treat this matter as a formal objection to the accounts. The failure to comply with the regulations will be corrected and there will be no continuing breach that would require us to consider whether the accounts are contrary to law.

If you do not agree with this view, please let me know as soon as possible.

Yours sincerely,

(signature)

Robin Baker
Director
For Grant Thornton UK LLP

(bit at the bottom about how they’re Chartered Accounts, a LLP registered in England and Wales, registered office details, list of members available, regulated by the Financial Conduct Authority, member firm of Grant Thornton International (GTIL) etc)


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What are the details of the recommendation to Wirral councillors about a senior management restructure at Wirral Council (1 redundancy, 5 promotions, 4 posts created and 4 vacant posts deleted)?

What are the details of the recommendation to Wirral councillors about a senior management restructure at Wirral Council (1 redundancy, 5 promotions, 4 posts created and 4 vacant posts deleted)?

What are the details of the recommendation to Wirral councillors about a senior management restructure at Wirral Council (1 redundancy, 5 promotions, 4 posts created and 4 vacant posts deleted)?

Surjit Tour (Monitoring Officer (Wirral Council)) at the Coordinating Committee held on 15th June 2016
Surjit Tour (Monitoring Officer (Wirral Council)) at the Coordinating Committee held on 15th June 2016 (who is one of the employees recommended for an increase in pay)

Councillors on Wirral Council’s Employment and Appointments Committee will decide on changes to Wirral Council’s senior management next week on Monday 25th July 2016. If approved by councillors the restructure will take effect from November 2016.

This senior management restructure had been put on hold until Eric Robinson’s appointment by councillors as Chief Executive of Wirral Council in February 2015.

However these are the changes recommended to councillors and you can read the full details on Wirral Council’s website.

Redundancy (1)

There is a recommendation that one senior manager (the Head of Housing and Community Safety Ian Platt) be made redundant, offered early retirement and his post is deleted. However the recommendation from officers is that his name and the financial details of how much this will cost are kept out of the public domain before the public meeting and that councillors decide on whether to release the information about Ian Platt after the meeting has been held.

For comparison the early retirement of Kevin Adderley last year cost ~£49k in redundancy plus ~£207k in pension costs for early retirement but as Ian Platt is on a lower salary grade I estimate the costs to Wirral Council are roughly ~£30k in redundancy and ~£127k in pension costs total £157k.

Promotions (5)

The following senior managers are recommended to receive a promotion:

Tom Sault (who has been acting up to the s.151 officer role will be permanently appointed to it)

Surjit Tour (who has been Monitoring Officer since shortly after Bill Norman was suspended in 2012 will now receive extra pay for being Monitoring Officer too in addition to his other job)

Mark Smith (promoted from Head of Environment and Regulation to Strategic Commissioner for Environment)

Alan Evans (promoted from Investment and Business Manager to Strategic Commissioner for Growth)

Sue Talbot (promoted from Schools Commissioning Manager to Lead Commissioner for Schools)

Vacant posts deleted (4)

Strategic Director for Regeneration and Environment (formerly Kevin Adderley)

Director of Resources (formerly Vivienne Quayle)

Head of Neighbourhoods and Engagement (formerly Emma Degg)

Head of Business Processes (formerly Malcolm Flanagan)

Posts deleted because postholder being promoted (3)

Investment and Business Manager (current postholder Alan Evans)
Schools Commissioner Manager (current postholder Sue Talbot)
Senior Manager (current postholder unknown)

Posts created (if approved by councillors) 4

Transformation Director (grade HS2 (£68,011 to £75,567))
Assistant Director: Commissioning Support (grade HS2 (£68,011 to £75,567))
Assistant Director: Community Services* (grade HS2 (£68,011 to £75,567))
Assistant Director: Adult and Disability Services* (grade HS2 (£68,011 to £75,567))

*Note new posts marked with * are recommended to be recruited internally from existing Wirral Council employees.

Penna will be advising Wirral Council’s Employment and Appointments Committee &Wirral Council officers on appointments to these four posts at a cost of £thousands per each post. If the creation of the new posts is agreed by councillors, councillors will also decide who the successful applicants are.

The councillors on Wirral Council’s Employment and Appointments Committee (although the councillors below can send a deputy in their place if they can’t make a particular meeting) are:

Cllr Adrian Jones (Chair) (Labour)
Cllr Phil Davies (Vice-Chair) (Labour)
Cllr George Davies (Labour)
Cllr Ann McLachlan (Labour)
Cllr Moira McLaughlin (Labour)
Cllr Jeff Green (Conservative)
Cllr Lesley Rennie (Conservative)
Cllr Phil Gilchrist (Liberal Democrat)

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Why am I objecting to Wirral Council’s draft statement of accounts for the 2015/16 financial year?

Why am I objecting to Wirral Council’s draft statement of accounts for the 2015/16 financial year?

Why am I objecting to Wirral Council’s draft statement of accounts for the 2015/16 financial year?

                                       

Tom Sault (Acting Section 151 Officer) Wirral Council at the Audit and Risk Management Committee on the 13th June 2016
Tom Sault (Acting Section 151 Officer) Wirral Council at the Audit and Risk Management Committee on the 13th June 2016

Below is a copy of the public notice that Wirral Council has published on its website here about the period from 1st July 2016 to the 11st August 2016 when “interested persons” (which includes local government electors in the Wirral area, organisations that pay business rates in the Wirral area and those representing local government electors in the Wirral area) can inspect (amongst other things) invoices and contracts relating to the 2015/16 financial year.
Continue reading “Why am I objecting to Wirral Council’s draft statement of accounts for the 2015/16 financial year?”