Agenda item

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 to the ‘learning, non-heading schools’ heading and asked what this referred to.

It was explained that this was education services provided by Children and Young People such as psychology services etc.

·         Councillor Walker referred to the empty properties across the borough and asked whether Bury Council had an empty property officer?

It was explained that an answer to this would be provided at a future meeting.

·         Councillor N Jones referred to the work of the Council Tax and benefits team and asked that their hard work be acknowledged.

·         Councillor Walker referred to the work of Mazars and Council staff in relation to the Audit work and asked that this be acknowledged.

Delegated decision:

1. That the final audited version of the Statement of Accounts for the 2018/2019 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 Audit Completion Report (ISA (UK+I) 260 Financial Statement Report) presented by Mazars be accepted.

3. That the letter of representation signed by the Chief Finance Officer and the Chair of the Audit Committee which was presented at the meeting be approved.

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