Redaction of cheque payee details

Question

There is clearly some history in relation to the current and previous financial system status as have had a Qualified Audit Report (Audit Wales). As one of several newly elected councillors we are trying to get to a position where we can approve and sign off 23/24 Accounts (!), and finally set a budget for 24/25 (I know!).
It is proving difficult to get access to all the detailed financial information, initially were just provided with pdf of basic spreadsheet summary income/expenditure. We have slowly managed to get more data, including spreadsheets utilised by the Clerk but still sadly lacking in detail. There are a number of (fairly significant ) payments where the Clerk has grudgingly provided more data but redacted the "payee" detail. These payments may also be to Councillors (past and present). The clerk has said initially that he cannot provide unredacted due to GDPR and confidentiality reasons. He also very recently circulated additional "legal advice" that he had obtained to support his position (from JustAsk.com !).
This seems counter to the Financial Regulations and puts us in a difficult position as we don't feel comfortable approving and signing off payments that we don't know who/what they were for. We have also put a stop on any non-emergency spend for current year until we feel comfortable that we can set a realistic budget.
Is this normal approach in fact is this even legal?

Answer 1

At best your clerk is a complete and incompetent fool. At worst he is milking the council.

Nothing in GDPR would require him to redact the payee detail. If it was going out to the public then yes, but these are not.

GDPR only applies to personal information. It does not apply to names of businesses. Ask your clerk why he is writing cheques to individuals. The legal basis of Legitimate Interest under GDPR applies. It is in your legitimate interest to see who payments are being made to. Without this the clerk could be writing cheques to himself or his mates. Completely lawful under GDPR.

Personally i would order him to provide full unredacted information and make it clear he faces disciplinary action if he does not.

Comments

I more or less agree with AR.  These are the council's accounts - not the clerk's.

I would make an appointment to meet the clerk and make it clear that your intention is to inspect all the accounts, invoices, bank statements and other vouchers. to see the clerk.

I also believed (I"ve been retired a few years now) that payments still required to be authorised by two councillors.  Is that what happens at your council?

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The request to see ALL financial details (not just summarised sub-totals under his categories we had initially) including all cheque details (including cheque book stubs) has been made at AGM , and two subsequent Ordinary Meetings , (plus in between those meetings multiple e-mail requests from Cllrs incl VC and the Finance Committee Chair) and also FOI requests. So "honestly" we have made every reasonable effort to get sight of relevant details, which is why beginning to have serious concerns that there could be some sort of potentially fraudulent issue somewhere.
Cheques do have to have two signatories (currently the Chair and a Cllr who is a very close friend) - we have now been waiting for over a month for the Clerk to provide the relevant forms for the Vice Chair to become a signatory and have access to the bank statements etc (which we know can take upto 3 weeks after form submission).
At the last meeting we managed to pass a motion for the new FC Chair to be added as signatory , remove the friend of the Chair AND prevent the effort to have the Clerk become a signatory!). However, how long it will take to get these things actioned is difficult to judge with the current behaviour of the Chair and Clerk

Answer 2

All councillors have responsibilities in relation to the accounts and this has to be confirmed in the annual return:

"The council itself is also asked to give a public assurance (see paragraphs 2.37 to 2.49) that in approving the annual accounting statements it is satisfied that this has been prepared in accordance with the requirements of the Regulations and proper practices. As with other decisions made by the council, all of which have a legal implication, councillors have a duty to make themselves familiar with the requirements contained in the Regulations as they are jointly and severally legally responsible." 

See Governance an Accountability for Local Councils or other similar sources. 

Note that councillors are jointly and severally responsible - which is to say no individual councillor is free of responsibility for the proper preparation of accounts. It follows from this (if not from many other considerations) that every councillor is entitled to satisfy themselves that the accounts are being properly prepared in conformance with the regulations.

If you do not have a system of councillor audit (which is usually expected by the internal auditor) then one should be instituted, and that provides an opportunity to ask detailed questions. The clerk is not entitled to refuse a properly appointed councillor audit.

Comments

Thanks for supporting comments, we have included such references to (Wales equivalent) guidance (as the link was only for England) in our correspondence with the clerk as well as during meetings.
As you say the Council should have a Cllr (I think not to be on Finance Committee) to "audit once per qtr). This isnt in place at this Council as yet. In fact the accounts for 23/24 have not been through the independent "auditor" process that should preface being opened to public for comments which can then be taken onboard by Audit Wales when they undertake the external annual audit. Due to a qualified Audit Report (from  Audit Wales) for 2 previous years - the clerk and Chair have had to provide data/information directly to Audi Wales - we havent appointed an independent auditor to also audit yet (!).
Anyway thanks its clear we are in the right , we will just have to keep plugging away. It doesnt help when there doesnt seem to be any teeth to the Auditor General or Monitoring Officer when you raise these issues with them.

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Sorry for failing to notice that I should have referred to Wales! Generally, external auditors can be quite assertive. I'd consider an approach to them as part of your armoury. Ideally, you should have a capable internal auditor, but as they are appointed by the council, there is scope for a less than robust arrangement. That doesn't apply to the external auditor.

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no problems :-) - I did notice that Deryck Evans (Audit Wales) remains as a member of the group that meet and feed into the guidance (despite Wales going their own way ~ 2005) and there are many many similarities between the documents.
In "informal communications" that a friend has had with AW it is surprising how limited the sanctions they have. In regard to the delays they had from our clerk/chair in providing data and information over several months - the clerk was eventually given a deadline to provide all that they had asked for and turn up to a meeting - if he hadnt (which to be honest we had hoped he wouldnt) they could personally fine him a max of £1000 . The money is not that great but as a practising barrister that would have been a significant personal stain.