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Page 1
Annual Governance and Accountability Return 2021/22 Form 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 Form 3 of the Annual Governance and
Accountability Return 2021/22
1. Every smaller authority in England that either received gross income or incurred gross expenditure
exceeding £25,000 must complete Form 3 of the Annual Governance and Accountability Return at
the end of each financial 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 must be completed by the authority’s internal auditor.
Sections 1 and 2 must 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 on the authority website/webpage
before 1 July 2022.
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 2022. 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 2022
« an explanation of any significant year on year variances in the accounting statements
« notification of the commencement date of the period for the exercise of public rights
« Annual Internal Audit Report 2021/22
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 Certificate 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
the authority website/webpage:
Before 1 July 2022 authorities must publish:
« Notice of the period for the exercise of public rights and a declaration that the accounting statements
are as yet unaudited;
o Section 1 – Annual Governance Statement 2021/22, approved and signed, page 4
e Section 2 – Accounting Statements 2021/22, approved and signed, page 5
Not later than 30 September 2022 authorities must publish:
+ Notice of conclusion of audit
o Section 3 – External Auditor Report and Certificate
» 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.
The Annual Governance and Accountability Return constitutes the annual retumn 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.
Annual Governance and Accountability Return 2021/22 Form 3 Page 1 of 6
Local Councils, Internal Drainage Boards and other Smaller Authorities*
Page 2
Guidance notes on completing Form 3 of the Annual Governance and
Accountability Return (AGAR) 2021/22
+ The authority must comply with Proper Practices in completing Sections 1 and 2 of this AGAR. Proper
Practices are found in the Practitioners’ Guide* which is updated from time to time and contains everything
needed to prepare successfully for the financial year-end and the subsequent work by the external auditor.
« Make sure that the AGAR is complete (no highlighted boxes left empty), and is properly signed and dated. 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 before approving the Annual
Governance Statement and the accounts.
« Use the checklist provided below to review the AGAR for completeness before returning it to the external
auditor by email or post (not both) no later than 30 June 2022.
« The Annual Governance Statement (Section 1) must be approved on the same day or before the Accounting
Statements (Section 2) and evidenced by the agenda or minute references.
« The Responsible Financial Officer (RFO) must certify the accounts (Section 2) before they are presented to
the authority for approval. The authority must in this order; consider, approve and sign the accounts.
« The RFO is required to commence the public rights period as soon as practical after the date of the AGAR approval.
« Do not send the external auditor any information not specifically requested. However, you must inform your
external auditor about any change of Clerk, Responsible Financial Officer or Chairman, and provide
relevant authority owned generic email addresses and telephone numbers.
« Make sure that the copy of the bank reconciliation to be sent to your external auditor with the AGAR 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 significant 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.
« |f 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 2021) equals the balance brought forward in the current year (Box 1 of 2022).
+ The Responsible Financial Officer (RFO), on behalf of the authority, must set the commencement date for the
exercise of public rights of 30 consecutive working days which must include the first ten working days of July.
« The authority must publish on the authority website/webpage 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 2022.
Completion checklist — ‘No' answers mean you may not have met requirements ‘ Yes ’ No
All sections Have all highlighted boxes have been completed? –
Has all additional information requested, including the dates set for the period v
for the exercise of public rights, been provided for the external auditor?
Internal Audit Report | Have all highlighted boxes been completed by the internal auditor and explanations provided? –
For any statement to which the response is ‘no’, has an explanation been published? –
| Section 2 Has the authority's approval of the accounting statements been confirmed by v
| the signature of the Chairman of the approval meeting?
Has an explanation of significant variations been published where required? –
Has the bank reconciliation as at 31 March 2022 been reconciled to Box 8? –
Has an explanation of any difference between Box 7 and Box 8 been provided? –
Sections 1 and 2 Trust funds — have all disclosures been made if the authority as a body corporate is a v
sole managing trustee? NB: do not send trust accounting statements unless requested. |
*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
Annual Governance and Accountability Return 2021/22 Form 3 Page 2 of 6
Local Councils, Internal Drainage Boards and other Smaller Authorities*
Page 3
Annual Internal Audit Report 2021/22
GREAT SAaNKEY PARISH ooNc(
WWW ., GREATSANKEY PC . ORG , VI
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 ’ I INol
AGE] No* | covered**
A. Appropriate accounting records have been properly kept throughout the financial year. |7 i |
B. This authority complied with its financial regulations, payments were supported by invoices, all ‘/ CEPT[fOR ISSPE
expenditure was approved and VAT was appropriately accounted for. O N INTERNALAOIT
C. This authority assessed the significant risks to achieving its objectives and reviewed the adequacy A oY
of arrangements to manage these.
D. The precept or rates requirement resulted from an adequate budgetary process; progress against /
the budget was regularly monitored; and reserves were appropriate.
E. Expected income was fully received, based on correct prices, properly recorded and promptly /
banked; and VAT was appropriately accounted for.
F. Petty cash payments were properly supported by receipts, all petty cash expenditure was approved T
and VAT appropriately accounted for.
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.
| H. Asset and investments registers were complete and accurate and properly maintained. [ e |
1. Periadic bank account reconciliations were properly carried out during the year. |t s e
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.
K. I 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”)
1 L. The authority publishes information on a free to access website/webpage up to date at the time of
the internal audit in accordance with any relevant transparency code requirements /
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).
N. The authority has complied with the publication requirements for 2020/21 AGAR /
(see AGAR Page 1 Guidance Notes).
0. (For local councils only) Yes | _No_[Notapplicable
Trust funds (including charitable) — The council met its responsibilities as a trustee. —
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
3005|2022 JDH BUSINESS SEXLIICES 11D
Signature of person who ’W(g – s A !
carried outthe internal audit Lnen S‘Q-N { CA——Ld Date 30 | 05 | 207°¢.,
*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 itis
next planned; or, if coverage is not required, the annual internal audit report must explain why not (add separate sheets if needed).
e o e e e
Annual Governance and Accountability Return 2021/22 Form 3 Page 3 of 6
Local Councils, Internal Drainage Boards and other Smaller Authorities
Page 4
Section 1 — Annual Governance Statement 2021/22
We acknowledge as the members of:
GREAT SANKEY 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 [ DL R U R TS T LV
1, We have put In place arrangements for effective financial || prepared its accounting statements in accordance
management during the year, and for the preparation of / with the Accounts and Audit Regulations.
the accounting statements. 2 |
2. We maintained an adequate system of internal control made proper arrangements and accepted responsibility
including measures designed to prevent and detect fraud ,/ for safeguarding the public money and resources in
and corruption and reviewed its effectiveness. Its charge.
3. We took all reasonable steps to assure ourselves [ " has only done what it has the legal power to do and has
that there are no matters of actual or potential complied with Proper Practices in doing so.
non-compliance with laws, regulations and Proper v
Practices that could have a significant financlal effect
on the ability of this authority to conduct its
business or manage its finances.
4, We provided proper opportunily during the year for during the year gave all persons interested the opportunity to
the exercise of electors' rights in accordance with the v inspect and ask questions about this authority's accounts.
requirements of the Accounts and Audit Regulations.
5, We carrled out an assessment of the risks facing this | considered and documented the financial and other risks it
authority and took appropriate steps to manage those '/ faces and dealt with them properly.
risks, Including the Introduction of Internal controls and/or
external Insurance cover where required.
6. We maintained throughout the year an adequate and arranged for a competent person, independent of the financial
effective system of internal audit of the accounting v controls and procedures, to give an objective view on whether
records and control systems. ; internal controls meet the needs of this smaller authority.
7. We took appropriate action on all matters raised ‘/ responded to matters brought to its attention by internal and
in reports from internal and external audit. external audit.
8. We considered whether any litigation, liabilities or | disclosed everything it should have about its business activily
commitments, events or transactions, occurring either || during the year including events taking place after the year
during or after the year-end, have a financial impact on v | end if relevant.
this authority and, where appropriate, have included them |
in the accounting statements. 2
9, (For local councils only) Trust funds including (H) No NV 1as met all of its responsibilities where, as a body
charitable. In our capacily as the sole managing corporate, it is a sole managing trustee of a local
trustee we discharged our accountability trust or trusts.
responsibllities for the fund(s)/assets, including
financlal reporting and, if required, independent v
examination or audit.
*Please provide explanations to the external auditor on a separate sheet for each ‘No’ response and describe how the
authority will address the weaknesses identified. These sheets must be published with the Annual Governance Statement.
This Annual Governance Statement was approved at a Signed by the Chairman and Clerk of the meeting where
meeting of the authority on: approval was given:
oBlobfz Q
chain WAl el
and recorded as minute reference: arman .
DD – A ) > agii|
PARSH (2022 (1A Clark o e
www.greatsankeypc.org.uk ' 2 { == [=7:0]0
–
Annual Governance and Accountability Return 2021/22 Form 3 Page 4 of 6
Local Councils, Internal Drainage Boards and other Smaller Authorities*
Page 5
Section 2 — Accounting Statements 2021/22 for
GREAT SANKEY PARISH COUNCIL
Year ending Notes and guidance
31 March 31 March Please round all figures to nearest £1. Do not leave any
2021 2022 boxes blank and report £0 or Nil balances. All figures must
s S agree to underlying financial records.
1. Balances brought Total balances and reserves at the beginning of the year
forward 336,614 456,640| as recorded in the financial records. Value must agree to
Box 7 of previous year.
2, (+) Precept or Rates and Total amount of precept (or for IDBs rates and levies)
Levies 463,771 473,297 | received or receivable in the year. Exclude any grants
received.
3. (+) Total other receipts QQ,S.’CI"JQ Total income or receipts as recorded in the cashbook less
76,507 61,092| the precept or rates/levies received (line 2). Include any
grants received.
4. (-) Staff costs Total expenditure or payments made to and on hehalf
of all employees. Include gross salaries and wages,
143,317 162,465 employers NI contributions, employers pension
contributions, gratuities and severance payments.
5. (-) Loan interest/capital Total expenditure or payments of capital and interest
repayments 28,764 28,404 made during the year on the authority’s borrowings (if any).
6. (-) All other payments R_@&uk{g" Total expenditure or payments as recorded in the cash-
248,171 302,550| book less staff costs (line 4) and loan interest/capital
repayments (line 5).
7. (=) Balances carried Total balances and reserves at the end of the year. Must
forward 456,640 497,610 equal (1+2+3) – (4+5+6).
8. Total value of cash and The sum of all current and deposit bank accounts, cash
short term investments 441,934 480,071 holdings and short term investments held as at 31 March —
To agree with bank reconciliation.
9. Total fixed assets plus The value of all the property the authority owns — it is made
long term investments 2,640,714 2,651,222 up of all its fixed assets and long term investments as at
and assets 31 March.
10. Total borrowings The outstanding capital balance as at 31 March of all loans
242,775 219,425 from third parties (including PWLB).
11. (For Local Councils Only) AGS No /NB The Council, as a body corporate, acts as sole trustee for
Disclosure note re Trust funds and is responsible for managing Trust funds or assets.
(including charitable) 7 | N.B. The figures in the accounting statements above do
| not include any Trust transactions.
| certify that for the year ended 31 March 2022 the Accounting | | confirm that these Accounting Statements were
Statements in this Annual Governance and Accountability approved by this authority on this date:
Return have been prepared on either a receipts and payments .
or income and expenditure basis following the guidance in 0% 0("’[ 22
Governance and Accountability for Smaller Authorities — a
Practitioners’ Guide to Proper Practices and present fairly as recorded in minute reference:
the financial position of this authority.
Signed by Responsible Financial Officer before being PAR LS I 2022 l S
presented to the authority for approval
2»_,@,&6——6( | Signed by Chairman of the meeting where the Accounting
Statements w<7 appmz&‘l
Date 3066(33‘ ,3 Jad=teltl]
e e e e e o e e e e
Annual Governance and Accountability Return 2021/22 Form 3 Page 5 of 6
Local Councils, Internal Drainage Boards and other Smaller Authorities™
Page 6
Section 3 — External Auditor Report and Certificate 2021/22
In respect of Great Sankey Parish Council — CH0085
1 Respective responsibilities of the body and the auditor
Our responsibility as auditors to complete a limited assurance review is set out by the National Audit Office (NAO). A
limited assurance review is not a full statutory audit, it does not constitute an audit carried out in accordance with
International Standards on Auditing (UK & Ireland) and hence it does not provide the same level of assurance that
such an audit would. The UK Government has determined that a lower level of assurance than that provided by a full
statutory audit is appropriate for those local public bodies with the lowest levels of spending.
Under a limited assurance review, the auditor is responsible for reviewing Sections 1 and 2 of the Annual Governance
and Accountability Return in accordance with NAO Auditor Guidance Note 02 (AGN 02) as issued by the NAO on
behalf of the Comptroller and Auditor General. AGN 02 is available from the NAO website —
https://www.nao.org.uk/code-audit-practice/guidance-and-information-for-auditors/ .
This authority is responsible for ensuring that its financial 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 2022; and
« confirms and provides assurance on those matters that are relevant to our duties and responsibilities as external
auditors.
2 External auditor report 2021/22
Sections 1 and 2 of the AGAR 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.
Other matters not affecting our opinion which we draw to the attention of the authority:
In the completion of their detailed report, the internal auditor has drawn attention to weaknesses in relation to procurement processes. The|
smaller authority must ensure that action is taken to address these areas of weakness in a timely manner.
3 External auditor certificate 2021/22
We 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 2022.
External Auditor Name
PKF LITTLEJOHN LLP
External Auditor Signat f – )~ Dat
xternal Auditor Signature Flu” Mtgé; Gy ate 13/09/2022
* 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)
Annual Governance and Accountability Return 2021/22 Form 3 Page 6 of 6