Agenda item

A report from the Interim Director of Resources and Regulation is attached.

The Post Audit Statement of Accounts are attached.

The Head of Financial Management, Andrew Baldwin, presented a report providing Members with details of the Council’s Statement of Accounts for the financial year ended March 31 2015.

The pre-audited Statement of Accounts had been approved by the Responsible Finance Officer on 5 June 2015. The accounts had since been audited and Members of the Audit Committee noted that:-

·         No adjustments had been identified;

·         Six recommendations had been made. The auditors had classified three as high priority and three as medium. Actions were being taken to address these;

·         The quality of the Council’s accounts and working papers have remained at a high level;

·         For the second year the Council was able to present its audited accounts to Members 2 and a half  months earlier than the statutory deadline and KPMG are to be thanked for their part in achieving this;

·         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 accounts.

Jillian Burrows and Trevor Rees, representing KPMG, the Council’s external auditors, presented the ISA 260 for 2014/2015 alongside the Statement of Accounts. The ISA 260 summarised the key findings from KPMG’s work in relation to the financial statements for the year ending 31 March 2015 and their assessment of the Authority’s arrangements to secure Value for Money in its use of resources.

It was explained that KPMG had substantially completed their work on the 2014/2015 financial statements and it was anticipated that an unqualified audit opinion would be issued by 31 July 2015.

Appendix 1 set out the key issues and recommendations along with the management responses to those recommendations and the responsible officer and due date.

Steve Kenyon, the Interim Executive Director of Resources and Regulation, presented the Letter of Representation which had been signed by him and the Chair of the Audit Committee, Councillor John Mallon, to KPMG 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 Bayley referred to risk number 2 in the ISA260 that had been identified in relation to schools bank account reconciliations and asked why something hadn’t been done before with regards to this issue.

It was explained that the issue had been highlighted by the audit process and was being rectified with immediate effect. Jillian Burrows reported that KPMG were happy that the reconciliations had been carried out but were asking that the audit trail in relation to this be strengthened. It was also explained that the issue only related to 8 of the Borough’s schools.

·         Councillor Walker referred to the follow up of the 2013/2014 recommendations and asked that the Committee be updated at a future meeting in relation to the asset revaluations and progress made on this.

Steve Kenyon explained that there was currently some work being done in relation to the specification requirements of the Asset System Module and much work had already been carried out on all the 2013/2014 recommendations.

Delegated decision:

1.     That the final version of the Statement of Accounts for the 2014/2015 financial year be approved in line with the provisions of the Accounts and Audit Regulations (England) 2011.

2.     That the matters and issues arising from the audit and contained within the ISA (UK+I) 260 Financial Statement Report presented by KPMG be accepted.

3.     That the letter of representation signed by the Interim Executive Director of Resources and Regulation which was presented at the meeting be approved.

4.     That KPMG be thanked for their support and advice during the audit process.