Agenda item

AUDITED STATEMENT OF ACCOUNTS 2015/2016 AND ISA 260 2015/2016

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

 

The Audited Statement of Accounts 2015/2016 attached

Minutes:

The Head of Financial Management, Andrew Baldwin, presented a report providing Members with details of the Authority’s Statement of Accounts for the financial year ended March 31 2016.

 

The pre-audited Statement of Accounts had been approved by the Responsible Finance Officer on 27 May 2016. This was undertaken on a dry-run for the introduction of the new Statutory deadlines which will commence  for the 2016/2017 Statement of Accounts, which will                                                          require approval by the Responsible Finance Officer by the 31 May 2017. The accounts had since been audited and Members of the Audit Committee noted that:-

 

·         Two adjustments had been identified;

·         One recommendation had been made. The auditors had classified this as medium risk. Actions were being taken to address this;

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

·         For the third year the Council was able to present its audited accounts to Members 2 ½ 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.

 

Rashpal Khangura and Robert Fenton, representing KPMG, the Council’s external auditors, presented the ISA 260 for 2015/2016 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 2016 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 2015/2016 financial statements and it was anticipated that an unqualified audit opinion would be issued by 31 July 2016.

 

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 Walker referred to the figures relating to VER applications and asked whether there had been any compulsory redundancies.

 

It was explained that this information was set out on document pack pages 67 and 68 and showed that for 2015/2016 there had been no compulsory redundancies of teaching staff and 5 of non teaching staff.

 

·         Councillor Whitby referred to the reduction in staff numbers and the fact that recruitment had been reduced and asked whether most of the staff were now at the top of their pay scales/

 

It was explained that the structure of the Council and the departments within it was constantly changing. Top of scales were always considered and factored into business cases.

 

·         Councillor Silbiger referred to the increase of £5,000 to £50,000 for asset valuations and asked who authorised this change.

 

It was reported that the officers made the decision under guidance from KPMG and in consultation with the Lead Member. This issue was always under review across local authorities.

 

·         Councillor Walker referred to Heritage Assets and asked whether the work in valuing this had been carried out.

 

It was explained that the Heritage Assets would not be included in the work carried out by KPMG but the valuation work had been completed.

 

·         Councillor Whitby asked whether the Head of Property Services could be invited to a future meeting of the Audit Committee to explain their role and the work of their team.

 

Delegated decision:

 

1.           That the final audited version of the Statement of Accounts for the 2015/2016 financial year be approved in line with the provisions of the Accounts and Audit Regulations 2015.

 

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 and the Chair of the Audit Committee which was presented at the meeting be approved.

 

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

 

Supporting documents: