Agenda item

[To approve the formal publication of the accounts]

Claire Nye, Director of Finance gave a brief introduction on the work over the last two months to certify the draft Statement of Accounts for 2016/2017 by the 30 June 2017 deadline set by the Accounts and Audit Regulations 2015.

Mark Stocks from the Council’s external auditors, Grant Thornton, presented the report on the findings from their audit of the Council’s Statement of Accounts for 2016/2017. He informed the Committee that the audit was substantially complete and he anticipated that an unqualified audit opinion would be provided in respect of the Council’s Financial Statements subject to the outcomes of the remaining elements of audit work.  Based on their Value for Money review work, it was also intended to issue an unqualified conclusion. An addendum to the auditor’s report was tabled relating to Pension Guarantee, and how it was now proposed that this be dealt within the Statement of Accounts. The issue had arisen late in the day during the audit.

Councillor Christine Mills thanked Grant Thornton for their work over the year and for their candid feedback on what the Council was doing well and those areas requiring action and improvement. Mike Ager, Independent Member added that he was pleased to see the progress the Council had made compared to last year.

In response to questions Grant Thornton reported that:

·         The risk area ‘worklessness’ identified through our Value for Money work was not an easy area to extract metrics for. Skill sets of people was equally valid as the one used. Progress had been made on this risk area but there was more to do across the whole West Midlands area. It is a complex issue. Where we see growth a lot of it is around what local authorities are doing so it is within the Council’s gift to generate growth and to stimulate economic activity.

·         This year had seen substantive change in the number of employees working on the Statement of Accounts and there had been support from elsewhere within the Council. It was hoped that the earlier deadline for completing the audit of the Council’s Statement of Accounts for 2018/2019 would be achieved.

·         There had been a typographical error in the original Statement of Accounts related to Teachers Pension Scheme.

·         The words ‘available for sale’ was an accounting term. It did not mean that specific assets were for sale.

Regarding the deadline for certifying the draft Statement of Accounts for 2017/2018, the Director of Finance reported that she was confident with the measures in place to meet the earlier deadline. A lot of automation work to prepare for next year’s audit was taking place. Support was also available from the Strategic Executive Board and other employees within the Council.

In response to Mike Ager, Independent Member, it was confirmed that there would be a follow-up on the action plan arising from the audit of the Statement of Accounts for 2016/2017.

Emma Bland, Finance Business Partner added that the issue highlighted from the review of internal controls in relation to information security policies and procedures would be reviewed. The deadline for completion of the reviews was May 2018.

Resolved:

1.     That the formal publication of the 2016/2017 Statement of Accounts, as required by the Accounts and Audit Regulations 2015, which require publication by 30 September 2017 be approved.

2.     That authority be delegated to the Chair of the Audit Committee to agree subsequent changes to the Statement of Accounts in consultation with the Director of Finance should there be any audit adjustments.

3.     The 2016/17 report to those charged with governance from the Council’s External Auditors, Grant Thornton be noted.

4.     That it be noted that the Council’s external auditors intend to issue an unqualified opinion on the Statement of Accounts 2016/17, subject to the outcomes of remaining elements of audit work.

5.     That it be noted that the external auditors have identified no material errors which are expected to remain unadjusted in the amended Statement of Accounts.

6.     That it be noted that the Management Representation letter had been finalised and would be signed by the Director of Finance on behalf of the Council.