This website is published in accordance with the following Government Requirements;
The Local Audit and Accountability Act 2014
Part 1: Introduction
Policy context
1. This Code is issued to meet the Government’s desire to place more power
into citizens’ hands to increase democratic accountability. Transparency gives
local people the tools and information they need to hold local public bodies to
account.
2. The Local Audit and Accountability Act 2014 sets out a new audit framework
for local public authorities which are currently covered by the Audit
Commission regime. Under the new audit framework smaller authorities,
including parish councils, internal drainage boards, charter trustees and port
health authorities, with an annual turnover not exceeding £25,000 will be
exempt from routine external audit. In place of routine audit, these smaller
authorities will be subject to the new transparency requirements laid out in this
Code. This will enable local electors and ratepayers to access relevant
information about the authorities’ accounts and governance.
3. The Government considers that publication of the items in this Code will
provide the local electorate and ratepayers with a clear picture of the activities
of these smaller authorities. Most of this information is already produced by
the majority of smaller authorities with a turnover not exceeding £25,000, and
the Government therefore considers that compliance with this Code will not
place a significant burden on these authorities.
Application
4. This Code is issued by the Secretary of State for Communities and Local
Government in exercise of his powers under section 2 of the Local
Government, Planning and Land Act 1980 (“the 1980 Act”), as amended by
section 38 of the Local Audit and Accountability Act 2014, to issue a code of
recommended practice as to the publication of information by local authorities
about the discharge of their functions and other matters which he considers to
be related.
5. This Code does not replace or supersede the existing legal framework for
access to and re-use of public sector information provided by the Freedom of
Information Act 2000 (as amended by the Protection of Freedoms Act 2012),
Environmental Information Regulations 2004, the Re-use of Public Sector
Information Regulations 2005 and Infrastructure for Spatial Information in the
European Community (INSPIRE) Regulations 2009.
6. This Code applies to the following types of authorities in England with an
annual turnover not exceeding £25,000: parish councils, internal drainage
boards, charter trustees and port health authorities (“smaller authorities”).
4Turnover is defined as the higher of an authority’s gross income for the year
and its gross expenditure for the year. 1
Data protection
7. The Government believes that local transparency can be implemented in a
way that complies with the Data Protection Act 1998. Where smaller
authorities are disclosing information which potentially engages the Data
Protection Act 1998, they must ensure that the publication of that information
is compliant with the provisions of that Act. The Data Protection Act 1998
does not restrict or inhibit information being published naming councillors,
members or senior local authority officers who have taken certain decisions,
because of the public interest in the scrutiny of such senior individuals and
decision makers. The Data Protection Act 1998 also does not automatically
prohibit information being published naming the suppliers with whom the
authority has contracts, including sole traders, because of the public interest
in accountability and transparency in the spending of public money.
8. This Code complements existing provisions relating to public access to the
decision-making process of smaller authorities. Smaller authorities should
ensure that they continue to comply with any such provisions, and any
subsequent legislation regarding local authority minutes, notices and
agendas. Where information would otherwise fall within one of the exemptions
from disclosure under the Freedom of Information Act 2000, the
Environmental Information Regulations 2004, or Infrastructure for Spatial
Information in the European Community (INSPIRE) Regulations 2009 then it
is in the discretion of the smaller authority whether or not to rely on that
exemption or publish the data. 2
Commercial confidentiality
9.
The Government has not seen any evidence that publishing details about
contracts entered into by smaller authorities would prejudice procurement
exercises or the interests of commercial organisations, or breach commercial
confidentiality unless specific confidentiality clauses are included in contracts.
Smaller authorities should expect to publish details of contracts newly entered
into – commercial confidentiality should not, in itself, be a reason for smaller
authorities to not follow the provisions of this Code. Therefore, smaller
authorities should consider inserting clauses in new contracts allowing for the
disclosure of data in compliance with this Code.
1 Where authorities are maintaining their accounts on a receipts and payments basis, ‘expenditure’
should be read as ‘payments’ and ‘income’ should be read as ‘receipts’.
2 The most relevant exemptions under the Freedom of Information Act 2000 are those relating to law
enforcement, for example information which may prejudice a current fraud investigation, (section
31), personal data (section 40) and information provided in confidence (section 41).
5Part 2: Information which should be published
10.
Smaller authorities should publish:
a. all items of expenditure above £100 (see paragraphs 13 – 15);
b. end of year accounts (see paragraphs 16 and 17),
c. annual governance statement (see paragraphs 18 and 19),
d. internal audit report (see paragraphs 20 – 22),
e. list of councillor or member responsibilities (see paragraph 23), and
f. the details of public land and building assets (see paragraphs 24 – 27),
g. Minutes, agendas and meeting papers of formal meetings (see
paragraphs 29 and 30).
Part 2.1: Information to be published annually
11.
The data and information in this Part (2.1) must be published:
12.
on the first occasion, not later than 1 July 2015, and
thereafter, not less than annually and not later than 1 July in the year
immediately following the accounting year to which it relates.
This is particularly important to enable local Government electors, council tax
payers and ratepayers to scrutinise financial information so that they are able to
exercise their rights to question and make objections to the auditor.
All items of expenditure above £100
13. Smaller authorities should publish the details of each individual item of
expenditure above £100. Publishing a complete list of expenditure
transactions will also meet this requirement. Expenditure information should
be published for each individual spending transaction above £100 3 rather than
each item bought. 4
14. For each individual item of expenditure above £100 the following information
must be published:
a. date the expenditure was incurred,
b. summary of the purpose of the expenditure, 5
c. amount 3 , and
d. Value Added Tax that cannot be recovered.
3 The threshold should be, where possible, the net amount excluding recoverable Value Added Tax
4 For example, it is sufficient to group all items in a stationary order as one item of expenditure.
5 This could be the descriptor that authorities use in their accounting system providing it gives a clear
sense of why the expenditure was incurred or what it purchased or secured for the local authority.
615.
Copies of all books, deeds, contracts, bills, vouchers, receipts and other
related documents do not need to be published, but should remain available
for inspection during the specified inspection period set out under regulation
14 of the Accounts and Audit (England) Regulations 2011 6 , or under any
equivalent regulations made under section 32 of the Local Audit and
Accountability Act 2014. The right to inspect can be exercised on giving
reasonable notice.
End of year accounts
16. Smaller authorities should publish their statement of accounts according to
the format included in the Annual Return form. Publication of the relevant
page of the completed Annual Return form will meet this requirement. The
statement of accounts must be approved and signed by the Responsible
Financial Officer and the Chairman of the meeting approving the statement of
accounts.
17. The statement of accounts should be accompanied by:
a. a copy of the bank reconciliation for the relevant financial year,
b. an explanation of any significant variances (e.g. more than 10-15 percent,
in line with proper practices) in the statement of accounts for the relevant
year and previous year, and
c. an explanation of any differences between ‘balances carried forward’ and
‘total cash and short term investments’, if applicable.
Annual governance statement
18. Smaller authorities should publish their annual governance statement
according to the format included in the Annual Return form. Publication of the
relevant page of the completed Annual Return form will meet this requirement.
The annual governance statement should be signed by the Chairman and
Clerk of the smaller authority.
19. Where the governance statement contains any negative responses, these
should be explained fully, including how any weaknesses will be addressed.
As referred to paragraphs 7 and 8, when publishing this information smaller
authorities should consider whether the Data Protection Act 1998 imposes
any restrictions or constraints on such publication and whether any of the
information would fall within an exemption under the Freedom of Information
Act 2000 and therefore could, or should, be withheld from publication.
6 S.I. 2011/817.
7Internal audit report
20. Smaller authorities should publish their annual internal audit report according
to the format included in the Annual Return form. Publication of the relevant
page of the completed Annual Return form will meet this requirement. The
internal audit report should be signed by the person who carried out the
internal audit.
21. Where the internal audit report contains any negative response to the internal
controls objectives, these should be explained fully, including how any
weaknesses will be addressed. As referred to paragraphs 7 and 8, when
publishing this information smaller authorities should consider whether the
Data Protection Act 1998 imposes any restrictions or constraints on such
publication and whether any of the information would fall within an exemption
under the Freedom of Information Act 2000 and therefore could, or should, be
withheld from publication.
22. Where the response to any internal controls objectives is ‘not covered’, an
explanation of when the most recent internal audit work was completed in this
area and when it is next planned should be provided. If coverage is not
required, an explanation stating why coverage is not needed should be
provided.
List of councillor or member responsibilities
23.
Smaller authorities should publish a list of councillor or member
responsibilities. The list should include the following information:
a. names of all councillors or members of the authority,
b. committee or board membership and function (if Chairman or Vice-
Chairman) of each councillor or member, and
c. representation on external local public bodies (if nominated to represent
the authority or board) of each councillor or member.
Details of public land and building assets
24. Parish councils and port health authorities should publish details of all public
land and building assets. Where this information is included in the authority’s
asset and liabilities register, this register may be published in its entirety or as
an edited version displaying only public land and building assets.
25. Internal drainage boards should only publish the details of registered land and
buildings that have a market value and which appear in their Fixed Assets
Register.
26. When publishing the required data, parish councils, port health authorities and
internal drainage boards should publish the following information in relation to
each land and building asset:
a. description (what it is, including size/acreage),
8b. location 7 (address or description of location),
c. owner/custodian, e.g. the authority or board manages the land or asset on
behalf of a local charity,
d. date of acquisition (if known),
e. cost of acquisition (or proxy value), and
f. present use.
27.
Charter trustees will not be required to publish any land or asset information
since they are not permitted to own either land or buildings under the Charter
Trustees Order (1974) and therefore will not hold any relevant information.
Part 2.2: Information to be published more
frequently than annually
28. The data and information referred to in this Part (2.2) must be published:
not later than the occasions specified in Paragraphs 29 and 30
Minutes, agendas and papers of formal meetings
29. Smaller authorities should publish the draft minutes from all formal meetings
(i.e. full council or board, committee and sub-committee meetings) not later
than one month after the meeting has taken place. These minutes should be
signed either at the meeting they were taken or at the next meeting.
30. Smaller authorities should also publish meeting agendas, which are as full and
informative as possible, and associated meeting papers not later than three
clear days before the meeting to which they relate is taking place.
7 For example, street number, street name, postal town and postcode; or map reference using
Ordinance Survey grid reference
9Part 3: Method of publication
31. Public data should be as accurate as possible at first publication. While errors
may occur, the publication of information should not be unduly delayed to
rectify mistakes. Instead, publication should be used to help address any
imperfections and deficiencies. The best way to achieve this is by having
robust information management processes in place. Where errors in public
data are discovered, or files are changed for other reasons (such as
omissions), smaller authorities should publish revised information making it
clear where and how there has been an amendment.
32. The data and information specified in this Code must be published on a
website which is publicly accessible free of charge. For example, one way that
this requirement could be achieved could be by publishing the data on the
smaller authority’s website or that of the billing authority in its area (district or
London borough or unitary council).
Ben Stoneman
A Senior Civil Servant in the Department for Communities and Local
Government
Department for Communities and Local Government
17 December 2014
10Annex A: Transparency Code for Smaller Authorities
Parish councils, internal drainage boards, charter trustees and port health authorities
with an annual turnover not exceeding £25,000 should publish:
Information title
All items of
expenditure above
£100 Information which should be published
Annual publication no later than 1 July in the year
immediately following the accounting year to which it relates.
Publish details of each individual item of expenditure.
Copies of all books, deeds, contracts, bills, vouchers,
receipts and other related documents do not need to be
published but should remain available for inspection.
For each individual item of expenditure the following
information must be published:
a. date the expenditure was incurred,
b. summary of the purpose of the expenditure,
c. amount, and
d. Value Added Tax that cannot be recovered.
End of year
accounts Annual publication no later than 1 July in the year
immediately following the accounting year to which it relates.
Publish signed statement of accounts according to the format
included in the Annual Return form. It should be
accompanied by:
a. a copy of the bank reconciliation for the relevant financial
year,
b. an explanation of any significant variances (e.g. more
than 10-15 percent) in the statement of accounts for the
relevant year and previous year, and
c. an explanation of any differences between ‘balances
carried forward’ and ‘total cash and short term
investments’, if applicable.
Annual governance
statement Annual publication no later than 1 July in the year
immediately following the accounting year to which it relates.
Publish signed annual governance statement according to
the format included in the Annual Return form.
Explain any negative responses to governance statements,
including how any weaknesses will be addressed.
Internal audit report Annual publication no later than 1 July in the year
immediately following the accounting year to which it relates.
Publish signed internal audit report according to the format
included in the Annual Return form.
Explain any negative response to the internal controls
objectives, including how any weaknesses will be addressed.
Explain any ‘not covered’ responses to internal controls
objectives.
11List of councillor or
member
responsibilities Annual publication of councillor or member responsibilities
no later than 1 July in the year immediately following the
accounting year to which it relates, including:
a) names of all councillors or members,
b) committee or board membership and function
(if Chairman or Vice-Chairman), and
c) representation on external local public bodies
(if nominated to represent the authority or board).
Location of public
land and building
assets Annual publication no later than 1 July in the year
immediately following the accounting year to which it relates.
Parish councils and port health authorities to publish details
of all public land and building assets – either in its full asset
and liabilities register or as an edited version.
Internal drainage boards to only publish details of registered
land and buildings that have a market value and appear in
Fixed Assets Register.
The following information must be published:
a) description (what it is, including size/acreage),
b) location (address 7 or description of location),
c) owner / custodian, e.g. the authority manages the land or
asset on behalf of a local charity,
d) date of acquisition (if known),
e) cost of acquisition (or proxy value), and
f) present use.
Minutes, agendas
and papers of
formal meetings Publication of draft minutes from all formal meetings not later
than one month after the meeting has taken place.
Publication of meeting agendas and associated meeting
papers not later than three clear days before the meeting to
which they relate is taking place.
12Annex B: Proposed timeline for smaller authorities’
publication of information
December 2014 Transparency Code for Smaller Authorities issued as
recommended practice
By end March 2015 Subject to Parliamentary approval Regulations to
come into force to require compliance with
Transparency Code for Smaller Authorities
Spring 2015 Proposed new burdens funding for smaller
authorities to assist compliance with the Code
July 2015 Publication by smaller authorities of first annual set
of data completed
April 2015 – Publication of draft minutes from all formal meetings,
not later than one month after each meeting, and of
meeting agendas and associated meeting papers not
later than three clear days before the meeting takes
place
July 2016 Publication of second annual set of data completed
13