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

                                       

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.

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Notice of public inspection of accounts
Wirral Metropolitan Borough Council
Audit of Accounts – year ended 31st March 2016

Notice of Public Rights.

The Accounts and Audit Regulations 2015
Local Audit and Accountability Act 2014

Notice is hereby given under Regulation 15(2) (b) of the Accounts and Audit Regulations 2015 that from 1 July 2016 to 11 August 2016 between 9.30 am and 4.00pm Monday to Friday any interested person may inspect, and make copies of the accounts and all books, deeds, contracts, bills, vouchers, receipts and other related documents of the Council (including Merseyside Pension Fund) (but excluding information that is protected on the grounds of commercial confidentiality or is personal information) for the year ended 31st March 2016, as stipulated in Section 25 of the Local Audit and Accountability Act 2014. The accounts and other documents will be available for inspection at the Treasury Building, Cleveland Street, Birkenhead, Wirral CH41 6BU by prior arrangement. Please telephone 0151 666 3389 or e-mail publicinspection@wirral.gov.uk to make an appointment. The accounts will also be available here.

During this period, a local government elector for any area to which the accounts relate, or their representative, may question the auditor about the accounts, or make an objection to the accounts as set out in sections 26 and 27 of the Local Audit and Accountability Act 2014. Any objection, and the grounds on which it is made, must be sent to the auditor in writing, with a copy to Tom Sault at the Town Hall address given below. Any objection must state the grounds on which the objection is being made and particulars of:

1. any item of account which is alleged to be contrary to law; and
2. any matter in respect of which it is proposed that the auditor could make a public interest report under section 24 of, and paragraph 1 of Schedule 7 to, the Local Audit and Accountability Act 2014.

Objections should be addressed to the auditor, Robin Baker of Grant Thornton UK LLP, Royal Liver Building, Liverpool, L3 1PS.

A guide to your rights

Date: 8th June 2016

Tom Sault
Acting Section 151 Officer

Wirral Metropolitan Borough Council
Town Hall
Brighton Street
Wirral Council
CH44 8ED

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Below is a copy of my letter to Wirral Council’s Tom Sault which I will deliver to Wallasey Town Hall this evening.

 

Jenmaleo
134 Boundary Road,
Bidston,
Wirral,
CH43 7PH
10th July 2016

Tom Sault
Acting Section 151 Officer
Wirral Metropolitan Borough Council
Town Hall
Brighton Street
Wirral Council
CH44 8ED

section 27 (right to make objections at audit) and section 28 (declaration that statement of account is unlawful) (Local Audit and Accountability Act 2014)

Dear Tom Sault,

Please find attached to this a copy of a letter to Robin Baker (Grant Thornton UK LLP) which is being sent by 1st class mail to Mr. Robin Baker, Grant Thornton UK LLP, Royal Liver Building, Liverpool, L3 1PS on the 11th July 2016.

I am a local government elector for the area covered by Wirral Council for the Bidston and St. James ward. The address I am registered to vote at is Jenmaleo, 134 Boundary Road, Bidston, Wirral, CH43 7PH.

My objection relates to a page in the draft statement of accounts for 2015/16 (page 105) which is also attached to this letter.

It is in a section marked “Officer’s Remuneration” which is note 32 to the accounts.

Wirral Council is what’s termed in the Accounts and Audit Regulations 2015 a “Category 1 Authority” as its income and gross expenditure both exceed £6.5 million.

Regulation 7(1) and 7(3) of the The Accounts and Audit Regulations 2015 state:

“

Part 3
Published accounts and audit – Category 1 authorities

Statement of Accounts for Category 1 Authorities

7. – (1) A statement of accounts prepared by a Category 1 authority under section 3(3) of the Act must be prepared in accordance with –
(a) these Regulations; and
(b) proper practices in relation to accounts.
…..
(3) The statement referred to in paragraph (1) must include a note setting out the matters referred to in Schedule 1 (employee and police officer remuneration).”

Regulation 2 of Schedule 1 of the Accounts and Audit Regulations 2015 states:

“Senior employees and relevant police officers
2.—(1) A Category 1 authority must include in its statement of accounts a note of the remuneration, set out according to the categories listed in sub-paragraph (2), and the relevant authority’s contribution to the person’s pension, by the relevant authority during the financial year to which the statement relates, of—
(a) senior employees, or
(b) relevant police officers,
in respect of their employment by the relevant authority or in their capacity as a police officer, whether on a permanent or temporary basis, to be listed individually in relation to such persons who must nevertheless be identified by way of job title only (except for persons whose salary is £ 150,000 or more per year, who must also be identified by name).
(2) The categories are—
(a) the total amount of salary, fees or allowances paid to or receivable by the person in the current and previous financial year;
(b) the total amount of bonuses so paid or receivable in the current and previous financial year;
(c) the total amount of sums paid by way of expenses allowance that are chargeable to United Kingdom income tax, and were paid to or receivable by the person;
(d) the total amount of any compensation for loss of employment paid to or receivable by the person, and any other payments made to or receivable by the person in connection with the termination of their employment by the relevant authority, or, in the case of a relevant police officer, the total amount of any payment made to a relevant police officer who ceases to hold office before the end of a fixed term appointment;
(e) the total estimated value of any benefits received by the person otherwise than in cash that do not fall within paragraphs (a) to (d) above, are emoluments of the person, and are received by the person in respect of their employment by the relevant authority or in their capacity as a police officer; and
(f) in relation to relevant police officers, any payments, whether made under the Police Regulations 2003(1) or otherwise, which do not fall within paragraphs (a) to (e) above.”

There is one employee of Wirral Council in the financial year 2015/16 whose salary is over £150,000.

This is the Chief Executive (£159,798).

Regulations 7(1)(a), 7(1)(b), 7(1)(3) of SI 2015/234 (Accounts and Audit Regulations 2015) and Regulation 2(1) of Schedule 1 of SI 2015/234 (Accounts and Audit Regulations 2015) when read together require Wirral Council for its statement of accounts for the 2015/16 financial year to identify by name those in receipt of a salary of over £150,000.

Eric Robinson (the Chief Executive for Wirral Council) is on a salary of over £150,000, yet he is not explicitly named on page 105 in the table at note 32 of the statement of accounts for 2015/16 (see attached page).

Furthermore, the table on page 105 at note 32 of the statement of accounts for 2015/16 does not contain the following required columns on bonuses (even if £NIL) for the 11 employees in the table as required by Regulation 2(2)(b) of Schedule 1 of SI 2015/234.

Please see my attached letter to Robin Baker of Grant Thornton as to what happens next.

I would also appreciate if you would advise as what the reasonable costs of Grant Thornton which they can recover from Wirral Council (see Local Audit and Accountability Act 2014, s.27(7)) in relation to this matter.

Yours sincerely,

(John Brace’s signature)

John Brace

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The page attached to the letter above is Page 105 of the Statement of Accounts for the FY 2015 16 for Wirral Council subject to audit Officers Remuneration. The complete draft statement of accounts for 2015/16 that this an excerpt from can be found on Wirral Council’s website.

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Below is the letter to Robin Baker of Grant Thornton UK LLP (Wirral Council’s external auditors).

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Jenmaleo
134 Boundary Road,
Bidston,
Wirral,
CH43 7PH
10th July 2016

Mr Robin Baker
Grant Thornton UK LLP
Royal Liver Building
Liverpool
L3 1PS

section 27 (right to make objections at audit) and section 28 (declaration that statement of account is unlawful) (Local Audit and Accountability Act 2014)
Dear Mr Robin Baker,

Grant Thornton UK LLP is the external auditor for Wirral Metropolitan Borough Council (“Wirral Council”).

I am a local government elector for the Wirral Council area and am registered to vote in the Bidston and St James ward at Jenmaleo, 134 Boundary Road, Wirral, CH43 7PH.

Please find attached to this letter a letter to Tom Sault of Wirral Council dated 10th July 2016 which details my objection to Wirral Council’s accounts and request to the external auditor that a statement of account is unlawful.

Please could you inform me whether Grant Thornton will consider this objection. If Grant Thornton decides to do so please could you advise whether you wish to take action/s outlined in s.27(1)(a) and/or s.27(1)(b) and/or 27(1)(6) and/or 28(1) of the Local Audit and Accountability Act 2014.

Please could you also advise of the costs recoverable from Wirral Council in this matter (see s.27(7) of the Local Audit and Accountability Act 2014).

I look forward to reading your response to my letter in the near future.

Yours sincerely,

(John Brace’s signature)

Mr. John Brace

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Updated 11’7’2016 – the letter to Robin Baker of Grant Thornton has been posted by signed for 1st class mail (tracking code BZ603921013GB).

Updated 14’7’2016 – the letter to Tom Sault of Wirral Council was hand delivered to Wirral Council’s One Stop Shop at Wallasey Town Hall on the 11th July 2016.

Updated 14’7’2016 – response received from Grant Thornton dated 13th July 2016.

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