Annual Governance and Accountability Return 2022 to 2023 Form 2.. To be completed only by Local Councils, Internal Drainage Boards and other smaller authorities where the higher of gross income or gross expenditure was £25,000 or less, that meet the qualifying criteria, and that wish to CERTIFY themselves as EXEMPT from a limited assurance review.. Guidance notes on completing Form 2 of the Annual Governance and Accountability Return 2022 to 2023.. 1... Every smaller authority in England where the higher of gross income or gross expenditure was £25,000 or less must, following the end of each financial year, complete Form 2 of the Annual Governance and Accountability Return in accordance with Proper Practices, unless the authority: .. a) does not meet the qualifying criteria for exemption; or.. b) does not wish to certify itself as exempt .. 2... Smaller authorities where the higher of all gross annual income or gross annual expenditure does not exceed £25,000 and that meet the qualifying criteria as set out in the Certificate of Exemption are able to declare themselves exempt from sending the completed Annual Governance and Accountability Return to the external auditor for a limited assurance review provided the authority completes: .. A.) The Certificate of Exemption, page 3 and returns a copy of it to the external auditor either by email or by post (not both) no later than 30 June 2023. Failure to do so will result in reminder letter(s) for which the Authority will be charged £40 +VAT for each letter; and .. B.) The Annual Governance and Accountability Return (Form 2) which is made up of:. • Annual Internal Audit Report (page 4) must be completed by the authority's internal auditor. • Section 1 - Annual Governance Statement (page 5) must be completed and approved by the authority. • Section 2 - Accounting Statements (page 6) must be completed and approved by the authority. NOTE.: Authorities certifying themselves as exempt SHOULD NOT send the completed Annual Governance and Accountability Return to the external auditor. .. 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 2023. .. Publication Requirements.. Smaller authorities must publish various documents on a publicly available website as required by the Accounts and Audit Regulations 2015, the Local Audit (Smaller Authorities) Regulations 2015 and the Transparency Code for Smaller Authorities. These include:.. • Certificate of Exemption, page 3.. • Annual Internal Audit Report 2022 to 2023, page 4 .. • Section 1 - Annual Governance Statement 2022 to 2023, page 5 .. • Section 2 - Accounting Statements 2022 to 2023, page 6 .. Analysis of variances.. • Bank reconciliation.. •Notice of the period for the exercise of public rights and other information required by Regulation 15 (2),. Accounts and Audit Regulations 2015..… Limited Assurance Review.. Any smaller authority may request a limited assurance review. If so, the authority should not certify itself as exempt or complete the Certificate of Exemption. Instead it should complete Part 3 of the AGAR 2022 to 2023 and return it to the external auditor together with the supporting documentation requested by the external auditor. The cost to the authority for the review will be £210 +VAT..… Provided that the authority certifies itself as exempt, and completes and publishes the documents listed under 'Publication Requirements', there is no requirement for the authority to have a review..… If it decides to certify itself as exempt, the authority must complete and return the Certificate of Exemption on Page 3 to the external auditor to confirm that it has certified itself exempt... 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 1 of 6.. Guidance notes on completing Form 2 of the Annual Governance and Accountability Return (AGAR) 2022 to 2023, Sections 1 and 2• … An authority that wishes to declare itself exempt from the requirement for a limited assurance review must do so at a meeting of the authority after 31 March 2023. It should not submit its Annual Governance and Accountability Return to the external auditor. However, as part of a more proportionate regime, the authority must comply with the requirements of the Transparency Code for Smaller Authorities... The Certificate of Exemption must be returned to the external auditor no later than 30 June 2023. Reminder letters will incur a charge of £40 +VAT for each letter.… The authority must comply with Proper Practices in completing Sections 1 and 2 of this AGAR and the Certificate of Exemption. 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.… The authority should receive and note the Annual Internal Audit Report before approving the Annual Governance Statement and the accounts... 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… Make sure that the AGAR is complete (no highlighted boxes left empty), and is properly signed and dated. Avoid making amendments to the completed annual return. Any amendments must be approved by the authority and properly initialled... Use the checklist provided below to review the AGAR for completeness at the meeting at which it is signed off... 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… The authority must publish numerical and narrative explanations for significant variances in the accounting statements on page 6.. Guidance is provided in the Practitioners' Guide which may assist..… Make sure that the accounting statements add up and the balance carried forward from the previous year (Box 7 of 2022) equals the balance brought forward in the current year (Box 1 of 2023). .. 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 2023. .. Completion checklist -.. 'No' answers mean you may not have met requirements .. All sections Have all highlighted boxes been completed?.. Ticked Yes.. Have the dates set for the period for the exercise of public rights been published?.. Ticked Yes.. Internal Audit Report .. Have all highlighted boxes been completed by the internal auditor and explanations provided?.. No tick in Yes or No boxes.. Section 1.. For any statement to which the response is 'no', is an explanation available for publication?.. Ticked Yes.. Section 2.. Has the Responsible Financial Officer signed the accounting statements before presentation to the authority for approval?... No tick in Yes or No boxes.. Has the authority's approval of the accounting statements been confirmed by the signature of the Chairman of the approval meeting?.. No tick in Yes or No boxes.. Has an explanation of significant variations been published where required?.. Ticked Yes.. Has the bank reconciliation as at 31 March 2023 been reconciled to Box 8?... No tick in Yes or No boxes.. Is an explanation of any difference between Box 7 and Box 8 available, should a question be raised by a local elector and or an interested party ?.. Ticked Yes.. Sections 1 and 2 Trust funds - have all disclosures been made if the authority as a body corporate is a sole managing trustee?.. ( Local Councils only).. Ticked Yes.. 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.. Page 2 of 6… Certificate of Exemption - AGAR 2022 to 2023 Form 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 2023, 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 2023 and a completed Certificate of Exemption is submitted no later than 30 June 2023 notifying the external auditor.. certifies that during the financial year 2022 to 2023, 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 2022 to 2023:.. £16,205… Total annual gross expenditure for the authority 2022 to 2023:.. £19,665… 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 £210 +VAT will be payable… By signing this Certificate of Exemption you are confirming that:.. The authority was in existence on 1st April 2019… In relation to the preceding financial year (2021 to 2022), 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 the above statements apply and 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 2023... By signing this certificate you are also confirming that you are aware of this requirement... Signed by the Responsible Financial Officer.. Signature. of.. G. Walkingshaw.. Date.. 20th April 2023.. Signed by Chairman.. Signature. of. Date.. I confirm that this Certificate of Exemption was approved by this authority on this date.. : 9th May 2023.. as recorded in minute reference : 20/136 .. Generic email address of Authority.. : aldhampc@gmail.com .. Telephone number.. : 01206240772… Published web address.. : Aldham Parish Council Website.. 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 2023.. Reminder letters incur a charge of £40 +VAT.. Page 3 of 6… Annual Internal Audit Report 2022 to 2023… Enter Authority.. : Aldham Parish Council… Enter publicly available website webpage address.. : https://aldhampc.essexweb.info/ .. During the financial year ended 31 March 2023, 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 2022 to 2023 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… A... Appropriate accounting records have been properly kept throughout the financial year... Ticked Yes. .. B... This authority complied with its financial regulations, payments were supported by invoices, all expenditure was approved and VAT was appropriately accounted for… Ticked Yes... C... This authority assessed the significant risks to achieving its objectives and reviewed the adequacy of arrangements to manage these... Ticked Yes... D... The precept or rates requirement resulted from an adequate budgetary process; progress against the budget was regularly monitored; and reserves were appropriate… Ticked Yes.. E... Expected income was fully received, based on correct prices, properly recorded and promptly banked; and VAT was appropriately accounted for… Ticked Yes... F... Petty cash payments were properly supported by receipts, all petty cash expenditure was approved and VAT appropriately accounted for... Ticked Not Covered - None... 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… Ticked Yes.. H... Asset and investments registers were complete and accurate and properly maintained.. Ticked Yes.. I... Periodic bank account reconciliations were properly carried out during the year.. Ticked Yes.. 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.. Ticked Yes.. K... If the authority certified itself as exempt from a limited assurance review in 2021 to 2022, it met the exemption criteria and correctly declared itself exempt. (If the authority had a limited assurance review of its 2021 to 2022 AGAR tick "not covered") .. Ticked Yes.. L… The authority publishes information on a website/webpage, up to date at the time of the internal audit, in accordance with the relevant registration.. Ticked Yes.. M... In the year covered by this AGAR, the authority correctly provided for the period for the exercise of public rights as required by the Accounts and Audit Regulations (during the 2022 to 2023 AGAR period, were public rights in relation to the 2021 to 2022 AGAR evidenced by a notice on the website and or authority approved minutes confirming the dates set).. Ticked Yes.. N... The authority has complied with the publication requirements for 2021 to 2022 AGAR, (see AGAR Page 1 Guidance Notes).. Ticked Yes.. O... (For local councils only) Trust funds (including charitable) - The council met its responsibilities as a trustee. . Ticked Not Applicable .. 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... Signature of person who carried out the internal audit..: signature. of. .. Date.. : … 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) … Page 4 of 6… Section 1 - Annual Governance Statement 2022 to 2023… We acknowledge as the members of Aldham 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 2023, that: .. 1... We have put in place arrangements for effective financial management during the year, and for the preparation of the accounting statements.. Tick Yes.. - Yes means that this authority. 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.. Tick Yes.. - Yes means that this authority. .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… Tick Yes.. Yes means that this authority. 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.. . Tick Yes.. - Yes means that this authority. 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… Tick Yes.. - Yes means that this authority. 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.. Tick Yes.. - Yes means that this authority. 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.. Tick Yes.. - Yes means that this authority. 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... Tick Yes.. - Yes means that this authority. 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…. Ticked Not Applicable .. 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..: .. Signed by the Chairman and Clerk of the meeting where approval was given..: Chairman ..: signature. of. .. Clerk.. : signature. of. G. Walkingshaw.. And recorded as minute reference.: … 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. Ticked.. Not ticked.. aldhampc @ essexweb.info… Page 5 of 6 … Section 2. - Accounting Statements 2022 to 2023 for Aldham Parish Council… Note.: 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 ..: year end 31 March 2022.. £ 10,141.. year end 31 March 2023.. £ 10,973… Note.: 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... (add). Precept or Rates and Levies..: year end 31 March 2022.. £ 13,784.. year end 31 March 2023.. £ 15,254… Note.: Total amount of precept (or for IDBS rates and levies) received or receivable in the year. Exclude any grants received… 3... (add). Total other receipts:. year end 31 March 2022.. £ 4,288.. year end 31 March 2023.. £ 951… Note.: Total income or receipts as recorded in the cashbook less the precept or rates/levies received (line 2). Include any grants received… 4... (subtract.) Staff costs..: year end 31 March 2022.. £ 6,754.. year end 31 March 2023.. £ 8,319… Note.: 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... (subtract.) Loan interest/capital repayments:. year end 31 March 2022.. £0.. year end 31 March 2023.. £0… Note.: Total expenditure or payments of capital and interest made during the year on the authority's borrowings (if any)... 6... (subtract.) All other payments.: year end 31 March 2022.. £ 10,486.. year end 31 March 2023.. £ 11,346… Note.: Total expenditure or payments as recorded in the cash- book less staff costs (line 4) and loan interest/capital repayments (line 5)... 7... (equals.) Balances carried forward.. : year end 31 March 2022.. £ 10,973.. year end 31 March 2023.. £ 7,513… Note.: Total balances and reserves at the end of the year. Must equal (1 plus 2 plus 3.) subtract. (4 plus 5 plus 6)... 8... Total value of cash and short term investments. : year end 31 March 2022.. £ 10,973.. year end 31 March 2023. £ 7,513… Note.: 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.: year end 31 March 2022.. £ 62,492.. year end 31 March 2023. £ 61,721… Note.: 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.. year end 31 March 2022.. £0.. year end 31 March 2023.. £0… Note.: 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).. Tick No… Note.: The Council as a body corporate acts as sole trustee for and is responsible for managing Trust funds or assets.. Note. The figures in the accounting statements above do not include any Trust transactions…. I certify that for the year ended 31 March 2023 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.. Signed.: signature. of. G. Walkingshaw .. Date.: 12th April 2023… I confirm that these Accounting Statements were approved by this authority on this date.: .. As recorded in minute reference : .. Signed by Chairman of the meeting where the Accounting Statements were approved. : signature. of.. … Page 6 of 6… ALDHAM PARISH COUNCIL ACCOUNTS… Bank Reconciliation.. Prepared by. Grahame Walkingshaw.. - Parish Clerk .. BANK STATEMENT BALANCE… Balance per bank statements as at 31 March 2023:.. Barclays Current 90057134. £5,506.12… Barclays Business 160541257. £1,003.57… Barclays Business 2 30057053. £1,003.57… Total . £7,513.26… Add.: Any un-banked items not credited as at 31 March 2023.. £ 0.00… Net balances as at 31 March 2023. £7,513.26… CASH BOOK; … Opening Balance 1st March 2023. £11,150.71… Add: Receipts to 31 March 2023. £ 2.48… Less: Payments to 31 March 2023 . £ 639.93… Closing balance per cash book as at 31 March 2023. £7,513.26… Signed by Councillor:. signature. of. J. Daines. Date.: 4th April 2023… Contact Details… Name.: Grahame Walkingshore of. Authority.: Aldham Parish Council.. County Area (local councils and parish meetings only).: ESSEX… Please complete this form and send it back to us with the AGAR or exemption certificate Clerk/RFO (Main contact)... Name. : G. Walkingshaw.. Address. : 80 Chapel Road, West Bergholt, Essex. C O 6 3 H L… Daytime telephone number.: 01206240772… Mobile telephone number. : not applicable… Email address.: aldhampc@gmail.com … Chair… Name. : J. Daines.. Address. : Maple House, Ford Street, Aldham, Essex. C O 6 3 Q Z… Daytime telephone.: 012062420538.. Mobile telephone.: 07867807826.. Email address.: jackie.daines@btinternet.com… Explanation of variances. pro forma… Name of smaller authority. Aldham Parish Council. County area (local councils and parish meetings only). Essex. Insert figures from Section 2 of the AGAR in all Blue highlighted boxes.. Next, please provide full explanations, including numerical values, for the following that will be flagged in the green boxes where relevant..: • variances of more than 15% between totals for individual boxes (except variances of less than £200)..; • New from 2020 to 2021 onwards: variances of £100,000 or more require explanation regardless of the % variation year on year..; a breakdown of approved reserves on the next tab if the total reserves (Box 7) figure is more than twice the annual precept/rates & levies value (Box 2)... 1... Balances Brought Forward. 2021 to 2022. =. £10,141.. 2022 to 2023. =. £10,973… Explanation of % variance from PY opening balance not required - Balance brought forward agrees … 2... Precept or Rates and Levies. 2021 to 2022. =. £13,784.. 2022 to 2023. =. £15,254… Variance = £1,470. Variance = 10.66%. No Explanation required… 3... Total Other Receipts. 2021 to 2022. =. £4,288.. 2022 to 2023. =. £951.. Variance. =. minus £3,337.. Variance = 77.82%. Explanation required. Yes. 2020 to 2021 to 2022 VAT refund claims and Locality Budget Payment. VAT £687.18 and £812.11. Locality £1,872.93 in 2020 to 2021. None in 2022 to 2023.. 4... Staff Costs. 2021 to 2022. =. £6,754.. 2022 to 2023. =. £8,319.. Variance. =. £1,565.. Variance = 23.17%.. Explanation required, yes. Two pay increases, backdated pay for 2022 to 2023, £113.52 and £432. .. 5... Loan Interest/Capital Repayment. 2022 to 2023. =. £0. Variance. =. £0. Variance. =. 0.00%. NO Explanation required .. 6... All Other Payments. 2021 to 2022. =. £10,486.. 2022 to 2023. =. £11,346.. Variance. =. £860.. Variance. =. 8.2% . no explanation required.. 7... Balances Carried Forward. 2021 to 2022. =. £10,973.. 2022 to 2023. =. £7,513.. VARIANCE EXPLANATION. NOT REQUIRED… 8... Total Cash and Short Term Investments. 2021 to 2022. =. £10,973.. 2022 to 2023. =. £7,513.. VARIANCE EXPLANATION. NOT REQUIRED… 9.. Total Fixed Assets plus Other Long Term Investments and Assets. 2021 to 2022 .=. £62,492.. 2022 to 2023. =. £61,721.. Variance. =. Minus £771. Variance. =. 1.23%. No Explanation required… 10... Total Borrowings. 2021 to 2022. =. £0 . 2022 to 2023. =. £0. Variance. =. £0. Variance. =. 0.00%. NO Explanation required… Rounding errors of up to £2 are tolerable. Variances of £200 or less are tolerable. Explanation from smaller authority (must include narrative and supporting figures)... End of Annual Return Forms 2022 to 2023