Agenda item

The Director of Finance submits a report presenting the audited Statement of Accounts along with the Annual Governance Statement for approval.

The Director of Finance submitted a report providing details of the audited Statement of Accounts along with the Annual Governance Statement.

The Chief Accountant introduced the report, reminding that progress updates had been regularly brought to the committee and noting that the delays in finalising the statement of accounts were due to a number of factors including a known national accounting issue involving infrastructure assets which had now been resolved.

Attention was drawn to the adjustments that had been made since the draft statement of accounts, which were largely due to the increased national focus on asset valuations. Full details of all adjustments were included in appendix C of the audit findings report and it was confirmed that none of the changes affected the money the Council had to run its services.

It was advised that due to the late sign off, more up to date pension liability information had been made available which had the potential to affect the accounts. This was a national issue, and conversations would take place with the external auditors around that. Again, this was not an issue that affected the money that the Council had available to fund its services. The Chief Accountant sought authority from the Committee to delegate the approval of any amendments regarding updated pension scheme liability information to the Director of Finance, subject to a report to the Committee at the next meeting.

Nicola Coombe, Senior Audit Manager, Grant Thornton gave an overview of the audit findings report and noted that on receipt of the latest government guidance regarding the temporary solution for infrastructure assets that this issue had now been resolved for the 21/22 accounts and the other items outstanding from November 2022 had now been resolved.

The list of adjustments required since the draft accounts (included in Appendix C of the Audit findings report), were referenced and there were 2 items which had been identified that the Council had elected not to make and those were set out in the letter of representation specifically amounting to £2.9 million in relation to asset evaluations.

Members of the Committee considered the report and raised a number of points which included the following:

There were more adjustments/corrections than previous years. However, it was explained that some of these were largely as a result of the national issues discussed at previous meetings, although there were also some issues identified that the council would address through improved processes and training. The issues identified were largely in relation to property, plant and equipment, which the finance team would work with the estates and buildings team to address.

The Director of Finance acknowledged the points made and explained that through training and improved processes the Council would look to address these issues. It was advised that the finance officers were meeting with estates to explore checks and improvements to processes to pick up errors going forward.

Both the auditors and the finance officers were satisfied there was nothing significant in the changes since the last discussion and the auditors confirmed that the accounts gave a true and fair representation of the Council’s accounts.

Members queried the audit recommendation made in relation to the Annual Governance Statement being considered to be light and asked how that would be perceived by the public. It was advised that there had been full discussion about this at the last meeting and the governance arrangements for the organisation were secure. In future the finance team would look to expand the statement to take account of the auditors recommendation for more qualitative information to be included. However, there were no concerns from the auditors about the organisation’s governance.

Some members raised concerns about the service of papers for this item and it was suggested that reports should be available for the agenda setting meetings and that the deadline for reports should be met in future.

Members were reminded that hard copies were posted using the docmail system, in addition to all documents being emailed to all of the members of the committee to ensure that there was opportunity for all to read the papers in advance.

It was advised that the deadlines around completion of the audit and accounts was tight especially this year with the delay to the audit process and waiting for legislation and government guidance to be issued.

Members were reminded that the audit report highlighted in this meeting was brought to the November 2022 meeting along with the statement of accounts, so this report was only talking about the changes since that time.

The Chair thanked everyone for their comments.

It was moved and seconded that:

·         the Statement of Accounts 2021/22 be approved;

·         the Annual Governance Statement 2021/22 be approved;

·         the letter of representation submitted by the Director of Finance (s151) be approved;

·         the Director of Finance have authority to approve any amendments to the Annual Accounts resulting from the updated pension scheme liability information;

·         the Director of Finance have authority to approve any minor amendments to the Annual Accounts and the Annual Governance Statement, subject to a report to the Committee at the next meeting;

Upon being put to the vote there were 3 votes in favour and 2 abstentions, and the above recommendations were CARRIED.

RESOLVED:

1.    That the auditors ISA 260 Report (the Audit Findings Report) to those charged with Governance and the recommendations contained within it at Appendix A be noted;

2.    That the Statement of Accounts 2021/22 be approved;

3.    That the Annual Governance Statement 2021/22 be approved;

4.    That the letter of representation submitted by the Director of Finance (s151) be approved;

5.    That authority to approve any amendments to the Annual Accounts resulting from the updated pension scheme liability information be delegated to the Director of Finance, subject to a report to the Committee at the next meeting;

6.    That authority to approve any minor amendments to the Annual Accounts and the Annual Governance Statement be delegated to the Director of Finance, subject to a report to the Committee at the next meeting;

7.    That the further update on external audit fees from 2023/24 onwards and comments thereon be noted.