Issue - meetings

Report from the Chief Finance Officer is attached

The Audited Statement of Accounts are attached.

The Head of Financial Management presented a report providing Members with details of the Authority’s audited Statement of Accounts for the financial year ended 31 March 2019.

It was reported that the pre-audited Statement of Accounts was approved by the Responsible Finance Officer on 31 May 2019. The accounts have now been audited by Mazars and members of the Audit Committee noted that;

·         10 audit adjustments have been required;

·         Two recommendations have been made which are of medium to low priority;

·         Officers will work with Mazars to improve the final accounts process;

·         A notice will be placed advertising the completion of the audit and how members of the public can access copies of the statement and summary of the accounts.

Karen Murray representing Mazars the Council’s external auditors, presented the Audit Completion report for 2018/2019 alongside the Statement of Accounts. The Audit Completion report summarised the key findings from Mazars work in relation to the financial statements for the year ending 31 March 2019 and their assessment of the Authority’s arrangements to secure Value for Money in its use of resources.

It was explained that Mazars had substantially completed their work and it was anticipated that an unqualified audit opinion would be issued within the next few days.

Andrew Baldwin, Head of Financial Management presented the Letter of Representation which was signed by the Chief Finance Officer and the Chair of the Audit Committee, Councillor Whitby, to Mazars which was required before the audit opinion could be issued.

Members of the Committee were given the opportunity to ask questions and make comments and the following points were raised:

·         Councillor N Jones referred to the issues around the valuing of property, plant and equipment and asked whether the changes required were by thousands or more or less.

Karen Murray explained that in some cases it was hundreds of thousands but that that did not affect the bottom line and wasn’t a material issue. It had no impact on the revenue outturn position nor had any impact on the bottom line of the balance sheet.

Mike Woodhead explained that there would be no benefit to the Council in over valuing assets. The main concern was around getting this information right.

Mike explained that the Council will work together with Mazars, the estates department and the finance team to carry out a piece of work in this area to update processes.

Karen reported that a piece of work would be carried out and a joint action plan produced in relation to the work required. The Action Plan would be brought to a future meeting of the Audit Committee.

·         Councillor N Jones referred to document pack page 162 and the significant differences that were set out in relation to cash flow statement, cash flow statement (other), movement in reserves and note 17 operating leases and asked if Mazars had concerns around these issues.

It was explained that there was no material effect in relation to the revised figures set out.

·         Councillor Gold referred  ...  view the full minutes text for item 175

The draft Statement of Accounts are attached (Audit ongoing).

It was reported that the Draft Statement of Accounts would have to be deferred until the September meeting of the Audit Committee.

Karen Murray from the Council’s external auditors Mazars explained that Mazars had received the draft accounts on 31 May and had started the audit work at that time. There had been some technical issues that had arisen that would mean that Mazars would not be in a position to issue an Audit Opinion.

It was reported that the Council will meet its obligations by publishing the current working accounts on its website with a statement of explanation.

Karen explained that Mazars would continue with the work to complete the audit and would report back to the Committee at its meeting is September.

Mike Woodhead, Chief Finance Officer explained that there had been similar issues across the country in relation to Councils’ accounts. It had been reported that there were over 100 council’s in the same position including some of the other GM authorities.