Name of smaller authority: GITTISHAM PARISH COUNCIL

County area (local councils and parish meetings only: DEVON

Please provide full explanations, including numerical values, for the following:

• variances of more than 15% between totals for individual boxes (except variances of less than £200);
• a breakdown of approved reserves if the total reserves (Box 7) figure is more than twice the annual precept/rates & levies value (Box 2).

Section 2	2020/21 £	2021/22 £	Variance £	Variance %	Detailed explanation of variance (with amounts £)
Box 2 Precept or Rates and Levies	8160	8323	-163	-2	n/a
Box 3 Total other receipts	13835	7,178	6,657	48.18	CIL receipts in the year 2020/21 were much higher, particularly as one payment had been carried over from a previous financial year.
Box 4 Staff costs	3356	2,969	387	11.53	n/a
Box 5 Loan interest/ capital repayments	NIL	NIL	NIL	NIL	n/a
Box 6 All other payments	19951	6,822	13,129	65.81	In 2020/21 GPC spent CIL funding on major refurbishment to the village hall, which accounts for a large proportion of payments in that year.
Box 9 Total fixed assets & long term investments & assets	26774	28,862	-2,088	-7.8	n/a
Box 10 Total borrowings	NIL	NIL	NIL	NIL	n/a
Explanation for ‘high’ reserves	Box 7 is almost twice Box 2 because the authority held the following breakdown of reserves at the year end:   £7,031.06 Contingency   £2,026.82 CIL

Certificate of Exemption – AGAR 2021/22 Part 2

To be completed by smaller authorities where the higher of gross income or gross expenditure did not exceed £25,000 in the year of account ended 31 March 2022, and that wish to certify  themselves as exempt from a limited assurance review under Section 9 of the Local Audit  (Smaller Authorities) Regulations 2015

There is no requirement to have a limited assurance review or to submit an Annual Governance and Accountability Return to the external auditor, provided that the authority has certified itself as exempt at a meeting of the  authority after 31 March 2022 and a completed Certificate of Exemption is submitted no later than 30 June 2022 notifying the external auditor.

Gittisham Parish Council

certifies that during the financial year 2021/22, the higher of the authority’s total gross income for the year or total gross annual expenditure, for the year did not exceed £25,000

Total annual gross income for the authority 2021/22: £15,501

Total annual gross expenditure for the authority 2021/22: £9,790

There are certain circumstances in which an authority will be unable to certify itself as exempt, so that a limited  assurance review will still be required. If an authority is unable to confirm the statements below then it  cannot certify itself as exempt and it must submit the completed Annual Governance and Accountability Return Part 3 to the external auditor to undertake a limited assurance review for which a fee of £200 +VAT will be payable.

By signing this Certificate of Exemption you are confirming that:

• The authority was in existence on 1st April 2017
• In relation to the preceding financial year (2020/21), the external auditor has not:
• issued a public interest report in respect of the authority or any entity connected with it
• made a statutory recommendation to the authority, relating to the authority or any entity connected with it
• issued an advisory notice under paragraph 1(1) of Schedule 8 to the Local Audit and Accountability Act 2014 (“the Act”), and has not withdrawn the notice
• commenced judicial review proceedings under section 31(1) of the Act
• made an application under section 28(1) of the Act for a declaration that an item of account is unlawful, and the application has not been withdrawn nor has the court refused to make the declaration
• The court has not declared an item of account unlawful after a person made an appeal under section 28(3) of the Act.

If you are able to confirm that the above statements apply and that the authority neither received gross income, nor incurred gross expenditure, exceeding £25,000, then the Certificate of Exemption can be signed and a copy submitted to the external auditor either by email or by post (not both).

The Annual Internal Audit Report, Annual Governance Statement, Accounting Statements, an analysis of  variances and the bank reconciliation plus the information required by Regulation 15 (2), Accounts and Audit Regulations 2015 including the period for the exercise of public rights still need to be fully completed and,  along with a copy of this certificate, published on the authority website/webpage* before 1 July 2022.  By signing this certificate you are also confirming that you are aware of this requirement.

*Published web address

ONLY this Certificate of Exemption should be returned EITHER by email OR by post (not both) as soon as possible after certification to your external auditor, but no later than 30 June 2022. Reminder letters incur a charge of £40 +VAT

Annual Internal Audit Report 2021/22

Signed by the Responsible Financial Officer

Date 09/06/2022

Signed by Chairman

Date 09/06/2022

I confirm that this Certificate of Exemption was approved by this authority on this date: 09/06/2022

as recorded in minute reference: 38/22

Generic email address of Authority:

Telephone Number 01404 851442

Published Web address www.gittisham.org.uk

Gittisham Parish Council

www.gittisham.org.uk

During the financial year ended 31 March 2022, this authority’s internal auditor acting independently and on the basis of an assessment of risk, carried out a selective assessment of compliance with the relevant procedures and controls in operation and obtained appropriate evidence from the authority.

The internal audit for 2021/22 has been carried out in accordance with this authority’s needs and planned coverage. On the basis of the findings in the areas examined, the internal audit conclusions are summarised in this table. Set out below are the objectives of internal control and alongside are the internal audit conclusions on whether, in all significant respects, the control objectives were being achieved throughout the financial year to a standard adequate to meet the needs of this authority.

Internal control objective	Yes	No*	Not covered**
A.  Appropriate accounting records have been properly kept throughout the financial year.	Y
B.  This authority complied with its financial regulations, payments were supported by invoices, all expenditure was approved and VAT was appropriately accounted for.	Y
C.  This authority assessed the significant risks to achieving its objectives and reviewed the adequacy of arrangements to manage these.	Y
D.  The precept or rates requirement resulted from an adequate budgetary process; progress against the budget was regularly monitored; and reserves were appropriate.	Y
E.  Expected income was fully received, based on correct prices, properly recorded, and promptly banked; and VAT was appropriately accounted for.	Y
F.  Petty cash payments were properly supported by receipts, all petty cash expenditure was approved and VAT appropriately accounted for.			Not applicable
G. Salaries to employees and allowances to members were paid in accordance with this authority’s approvals, and PAYE and NI requirements were properly applied.	Y
H. Asset and investments registers were complete and accurate and properly maintained.	Y
I. Periodic bank account reconciliations were properly carried out during the year.	Y
J. Accounting statements prepared during the year were prepared on the correct accounting basis (receipts and payments or income and expenditure), agreed to the cash book, supported by an adequate audit trail from underlying records and where appropriate debtors and creditors were properly recorded.	Y
K. If the authority certified itself as exempt from a limited assurance review in 2020/21, it met the exemption criteria and correctly declared itself exempt. (If the authority had a limited assurance review of its 2020/21 AGAR tick “not covered”)	Y
L. The authority publishes information on a website/webpage, up to date at the time of the internal audit, in accordance with the Transparency code for smaller authorities.	Y
M. The authority, during the previous year (2020-21) correctly provided for the period for the  exercise of public rights as required by the Accounts and Audit Regulations (evidenced by the notice published on the website and/or authority approved minutes confirming the dates set).	Y
N. The authority has complied with the publication requirements for 2020/21 AGAR  (see AGAR Page 1 Guidance Notes).	Y
	O. (For local councils only)   Trust funds (including charitable) – The council met its responsibilities as a trustee.	Yes	No	Not applicable
				Y

For any other risk areas identified by this authority adequate controls existed (list any other risk areas on separate sheets if needed).

Date(s) internal audit undertaken                              Name of person who carried out the internal audit

27/05/2022

Alison Marshall

Signature of person who carried out the internal audit  

                        

Date

09/06/2022

*If the response is ‘no’ please state the implications and action being taken to address any weakness in control identified (add separate sheets if needed). **Note: If the response is ‘not covered’ please state when the most recent internal audit work was done in this area and when it is next planned; or, if coverage is not required, the annual internal audit report must explain why not (add separate sheets if needed).

Section 1 – Annual Governance Statement 2021/22

We acknowledge as the members of:

Gittisham Parish Council

our responsibility for ensuring that there is a sound system of internal control, including arrangements for the preparation of the Accounting Statements. We confirm, to the best of our knowledge and belief, with respect to the Accounting Statements for the year ended 31 March 2022, that:

Agreed
	Yes	No	‘Yes’ means that this authority:
1. We have put in place arrangements for effective financial management during the year, and for the preparation of the accounting statements.	Y		prepared its accounting statements in accordance   with the Accounts and Audit Regulations.
2. We maintained an adequate system of internal control including measures designed to prevent and detect fraud and corruption and reviewed its effectiveness.	Y		made proper arrangements and accepted responsibility  for safeguarding the public money and resources in  its charge.
3. We took all reasonable steps to assure ourselves      that there are no matters of actual or potential              non-compliance with laws, regulations and Proper       Practices that could have a significant financial effect              on the ability of this authority to conduct its        business or manage its finances.	Y		has only done what it has the legal power to do and has complied with Proper Practices in doing so.
4. We provided proper opportunity during the year for  the exercise of electors’ rights in accordance with the requirements of the Accounts and Audit Regulations.	Y		during the year gave all persons interested the opportunity to inspect and ask questions about this authority’s accounts.
5. We carried out an assessment of the risks facing this authority and took appropriate steps to manage those risks, including the introduction of internal controls and/or external insurance cover where required.	Y		considered and documented the financial and other risks it faces and dealt with them properly.
6. We maintained throughout the year an adequate and  effective system of internal audit of the accounting  records and control systems.	Y		arranged for a competent person, independent of the financial controls and procedures, to give an objective view on whether internal controls meet the needs of this smaller authority.
7. We took appropriate action on all matters raised  in reports from internal and external audit.	Y		responded to matters brought to its attention by internal and external audit.
8. We considered whether any litigation, liabilities or  commitments, events or transactions, occurring either during or after the year-end, have a financial impact on this authority and, where appropriate, have included them in the accounting statements.	Y		disclosed everything it should have about its business activity during the year including events taking place after the year end if relevant.
9. (For local councils only) Trust funds including  charitable. In our capacity as the sole managing  trustee we discharged our accountability  responsibilities for the fund(s)/assets, including  financial reporting and, if required, independent  examination or audit.			N/A	has met all of its responsibilities where as a body corporate it is a sole managing trustee of a local trust or trusts.

*For any statement to which the response is ‘no’, an explanation must be published

This Annual Governance Statement was approved at a meeting of the authority on:

09/06/2022

Signed by the Chairman and Clerk of the meeting where approval was given:

Chairman

       Clerk

and recorded as minute reference: 36/22

Other information required by the Transparency Code (not part of the Annual Governance Statement)
The authority website/webpage is up to date and the information required by the Transparency Code has  been published.	Yes	No

www.gittisham.org.uk

Section 2 – Accounting Statements 2021/22 for

Gittisham Parish Council

	Year ending	Notes and guidance
31 March 2021 £	31 March 2022 £	Please round all figures to nearest £1. Do not leave any boxes blank and report £0 or Nil balances. All figures must agree to underlying financial records.
1. Balances brought  forward	17,545	16,233	Total balances and reserves at the beginning of the year  as recorded in the financial records. Value must agree to Box 7 of previous year.
2. (+) Precept or Rates and Levies	8,160	8,323	Total amount of precept (or for IDBs rates and levies) received or receivable in the year. Exclude any grants received.
3. (+) Total other receipts	13,835	7,178	Total income or receipts as recorded in the cashbook less the precept or rates/levies received (line 2). Include any grants received.
4. (-) Staff costs	3,356	2,969	Total expenditure or payments made to and on behalf  of all employees. Include gross salaries and wages,  employers NI contributions, employers pension  contributions, gratuities and severance payments.
5. (-) Loan interest/capital repayments	0	0	Total expenditure or payments of capital and interest made during the year on the authority’s borrowings (if any).
6.  (-) All other payments	19,951	6,822	Total expenditure or payments as recorded in the cashbook less staff costs (line 4) and loan interest/capital repayments (line 5).
7. (=) Balances carried forward	16,233	21,943	Total balances and reserves at the end of the year. Must equal (1+2+3) – (4+5+6).
8. Total value of cash and short term investments	16,233	21,943	The sum of all current and deposit bank accounts, cash holdings and short term investments held as at 31 March – To agree with bank reconciliation.
9. Total fixed assets plus long term investments  and assets	26,774	28,862	The value of all the property the authority owns – it is made up of all its fixed assets and long term investments as at  31 March.
10. Total borrowings	0	0	The outstanding capital balance as at 31 March of all loans from third parties (including PWLB).
11. (For Local Councils Only) Disclosure note re Trust funds (including charitable)	Yes	No	The Council as a body corporate acts as sole trustee for and is responsible for managing Trust funds or assets.
	N	N.B. The figures in the accounting statements above do not include any Trust transactions.

I certify that for the year ended 31 March 2022 the Accounting

Statements in this Annual Governance and Accountability Return have been prepared on either a receipts and  payments or income and expenditure basis following the guidance in Governance and Accountability for Smaller  Authorities – a Practitioners’ Guide to Proper Practices  and present fairly the financial position of this authority.

Signed by Responsible Financial Officer before being  presented to the authority for approval:

Date 09/06/2022

I confirm that these Accounting Statements were approved by this authority on this date:

09/06/2022

as recorded in minute reference: 37/22

Signed by Chairman of the meeting where the  Accounting Statements were approved

WHAT EXEMPT AUTHORITIES NEED TO DO TO ADVERTISE THE PERIOD DURING WHICH ELECTORS AND INTERESTED PERSONS MAY EXERCISE RIGHTS RELATING TO THE ANNUAL ACCOUNTS

The Local Audit and Accountability Act 2014 and the Accounts and Audit Regulations 2015 require that:

1. The statement of accounts prepared by the authority (i.e. the Annual Governance & Accountability Return (AGAR) Part 2), 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, during a period of 30 working days set by the smaller authority and including the first 10 working days of July.

2. The period referred to in paragraph (1) starts with the day on which the period for the exercise of public rights is treated as having been commenced i.e. the day following the day on which all of the obligations in paragraph (3) below have been fulfilled.

3. The responsible financial officer for an exempt authority must, on behalf of that authority, publish (which must include publication on the authority’s website):

(a) the Accounting Statements (i.e. Section 2 of the AGAR Part 2), accompanied by:

(i) a declaration, signed by that officer to the effect that the statement of accounts will not be audited on account of that authority’s self-certified status as exempt, unless either a request for an opportunity to question the auditor about the authority’s accounting records under section 26(2) or an objection under section 27(1) of the Act, results in the involvement of the local auditor;

(ii) the Annual Governance Statement (i.e. Section 1 of the AGAR Part 2); and

(iii) the Certificate of Exemption (i.e. Page 3 of the AGAR Part 2); and

(b) a statement that sets out—

(i) the period for the exercise of public rights;

(ii) details of the manner in which notice should be given of an intention to inspect the accounting records and other documents;

(iii) the name and address of the local auditor;

(iv) the provisions contained in section 25 (inspection of statements of accounts etc), section 26 (inspection of documents etc) and section 27 (right to make objections at audit) of the Act, as they have effect in relation to the authority in question;  

HOW DO YOU DO IT?

You will meet statutory requirements if you fully and accurately complete the notice of public rights pro forma in this document; and publish (including publication on the smaller authority’s website) the following documents, the day before the public rights period commences:

1. the approved Sections 1 and 2 of Part 2 of the AGAR; and
2. the completed Notice of Public Rights and Publication of Annual Governance & Accountability Return (Exempt Authority). Please note that we have pre-completed it with the following suggested dates: Monday 13 June – Friday 22 July 2022. (The latest possible dates that comply with the statutory requirements are Friday 1 July – Thursday 11 August 2022); and
3. the notes which accompany the Notice (Local authority accounts: a summary of your rights).
   

Smaller authority name: GITTISHAM PARISH COUNCIL

NOTICE OF PUBLIC RIGHTS AND PUBLICATION OF ANNUAL GOVERNANCE & ACCOUNTABILITY RETURN (EXEMPT AUTHORITY)

ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022

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

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

NOTICE

NOTES

1. Date of announcement_12th June 2022____________________________(a) 2. Each year the smaller authority prepares an Annual Governance and Accountability Return (AGAR).  The AGAR has been published with this notice. It will not be reviewed by the appointed auditor, since the smaller authority has certified itself as exempt from the appointed auditor’s review. Any person interested has the right to inspect and make copies of the AGAR, the accounting records for the financial year to which it 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 2022, these documents will be available on reasonable notice by application to:   (b)             Fiona Clampin (clerk, Gittisham Parish Council), Garlands, Gittisham EX14 3AJ  Tel. 01404 851442 email:   commencing on (c) __Monday 13 June 2022 _______________________     and ending on (d) ___Friday 22 July 2022 ________________________   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 only subject to review by the appointed auditor if questions or objections raised under the Local Audit and Accountability Act 2014 lead to the involvement of the auditor.  The appointed auditor is:   PKF Littlejohn LLP (Ref: SBA Team) 15 Westferry Circus Canary Wharf London E14 4HD ()   5. This announcement is made by (e) Fiona Clampin Clerk / Responsible Financial Officer Gittisham 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   (c) Insert date, which must be at least 1 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 include the first 10 working days of July.                                               (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 and the Accounts and Audit Regulations 2015 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. The 30 working day period must include a common period of inspection during which all smaller authorities’ accounting records are available to inspect. This will be 1-14 July 2022 for 2021/22 accounts. 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.