Agenda item

[To receive the update from the Council’s external auditor’s findings in relation to the Statement of Accounts 2018-2019][Report to follow]

Mark Stocks from the Council’s external auditors, Grant Thornton, took the Committee through the headlines and key findings from their report on the audit of the Council’s Statement of Accounts for 2018-2019.  He informed the Committee that the audit was substantially complete.  A few adjustments had been made and unadjusted errors identified in the Statement of Accounts.  The financial statements were of a good standard and he intended to issue an unqualified audit opinion.  Regarding their Value for Money Conclusion on the Council’s value for money arrangements, he informed the Committee that audit work on the Civic Halls was ongoing.  As such they had not been able to conclude their work on the Council’s Use of Resources. It was hoped that their work on the Civic Halls would be completed before the end of the month.

Councillor Philip Bateman MBE commented that the Committee needed to be mindful of the contents of the Auditors report and that local government was in for a difficult time.  He also highlighted from the report the auditors comments about the Council’s future savings plans and on the need for them to be delivered.

Mike Ager, Independent Member asked whether the Committee would receive a fuller report on the areas where the external auditors work was ongoing.  Mark Stocks reported that if minor amendments are made to the Statement of Accounts, he would ask that the Chair of the Committee take delegated action to approve the amended accounts.  In terms of the ongoing work on the Civic Halls, he would report on that at the end of the discussion on his report.  Claire Nye, Director of Finance added that the final report on the Audit of the Council’s Statement of Accounts would be submitted to the Committee during autumn as a matter of course.

Councillor Philip Bateman MBE asked whether the auditor was satisfied with the Council’s progress on the implementation of the Strategic Asset Management arrangements. Mark Stocks reported that he had presented his concerns to the Committee in previous updates on their audit work.  Now that the Council had arrangements in place for managing and utilising its assets effectively to support delivery of strategic priorities, he would like to see them implemented.  Now that plans are in place, he no longer saw the issue as a risk.  He was comfortable with the arrangements and would keep an eye on progress.   The Director of Finance informed the Committee that the ‘Our Council Scrutiny Panel’ would be scrutinising the overall management of the Council’s strategic assets.

Resolved:

1.     That the formal publication of the 2018-2019 Statement of Accounts, as required by the Accounts and Audit Regulations 2015, which require publication by 31 July 2019 be approved.

2.     That the draft Management Representation letter which would be signed by the Director of Finance on behalf of the Council be approved.

3.     That authority be delegated to the Chair of the Audit and Risk Committee to agree subsequent changes to the Statement of Accounts and Management Representation letter in consultation with the Director of Finance, should there be any audit adjustments.

4.     That the 2018-2019 report to those charged with governance from the Council’s External Auditors, Grant Thornton be noted.

5.     That it be noted that the Council’s external auditors intend to issue an unqualified opinion on the Statement of Accounts 2018-2019, subject to the outcomes of remaining elements of audit work.

6.     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.