Agenda item

To present:

 

·      The Annual Governance Statement 2018/19 for approval.

·      The External Auditor’s Audit Completion Report for the year ended 31 March 2019, which includes the management representation letter, for consideration and approval, to enable a final opinion on the accounts and value for money arrangements to be formally issued by the External Auditor.

·      The Statement of Accounts 2018/19 for consideration and approval for publication by the end of July 2019.

Minutes:

There was a report submitted by the Council’s Deputy Chief Executive (report A.3) which presented:-

 

(i)     the Annual Governance Statement 2018/19 for approval;

(ii)    the External Auditor’s Audit Completion Report for the year ended 31 March 2019 (which included the management representation letter, for consideration and approval, in order to enable a final opinion on the accounts and value for money arrangements to be formally issued by the external Auditor; and

(iii)  the Statement of Accounts 2018/19 for consideration and approval for publication by the end of July 2019.

 

(1)       ANNUAL GOVERNANCE STATEMENT 2018/2019

 

The Committee was informed that the Annual Governance Statement 2018/2019 had been revised to include the final opinion of the Acting Audit and Governance Manager. Appendix A to the Officer’s report set out the revised Annual Governance Statement 2018/19. 

 

Therefore, the Annual Governance Statement was presented to the Committee for consideration and approval which included the necessary authorisation for the Chief Executive and the Leader of the Council to sign it.

 

(2)       STATEMENT OF ACCOUNTS 2018/2019 AND EXTERNAL AUDITOR’S AUDIT COMPLETION REPORT

 

It was reported that the pre-audited Statement of Accounts for 2018/19 had been approved for publication by the Council’s Section 151 Officer (the Head of Finance, Revenues and Benefits) at the end of May 2019. In addition, the pre-audited Annual Governance Statement 2018/19 had been approved for publication by the Council’s Management Team also at the end of May 2019.

 

Members were made aware that each year the Council’s External Auditors were required to prepare an annual report setting out the outcomes from their review of the Statement of Accounts (including the Annual Governance Statement) and the Council’s value for money arrangements. The Audit Committee was then required to consider the content of that annual report and approve for publication the final audited Statement of Accounts and Annual Governance Statement.

 

The Committee was advised that a draft management representation letter which sets out certain management representations was included as Appendix D to the External Auditor’s Audit Completion Report. The Audit Committee were also required to separately approve this letter and to authorise the Head of Finance, Revenues and Benefits and the Chairman (or in his absence the Vice-Chairman) of the Committee to sign it before it was forwarded on to the External Auditor.

 

Once the above tasks were completed the External Auditor could conclude the audit by finalising and formally issuing their audit opinion along with the certification of the accounts.

 

Although the External Auditor had substantially completed their audit of the 2018/19 accounts a small number of activities remained outstanding (as set out on page 35 of the External Auditor’s Audit Completion Report). However, the External Auditor currently planned on issuing an unmodified audit opinion in respect of the Financial Statements and on the Council’s arrangements to secure economy, efficiency and effectiveness in its use of resources.

However, one adjustment had been required (details were set out on pages 19 to 20 of the Audit Completion Report) and there had also been an unadjusted item (as set out on pages 17 and 18 of the Audit Completion Report). Both of those issues were outside of the Council’s control as they related to pension fund adjustments. It was, however, important to highlight that those items did not have a direct impact on the overall 2018/19 financial position of the Council.

 

The Committee was further informed that, in respect of other matters arising, the External Auditor had made a recommendation regarding the collation / declaration of related party transaction information involving Members. Further details along with an associated recommendation were set out on page 27 of their Audit Completion report. This would be reviewed by Officers for implementation as part of the Statement of Accounts process for 2019/20 which would be undertaken at the end of the current financial year.

 

Members were advised that, to conclude the Statement of Accounts process for 2018/19, the Committee was required to consider the Audit Completion Report for the year ending 31 March 2019, approve the management representation letter and approve the final Statement of Accounts for 2018/19, which included the adjustment mentioned above. The final Statement of Accounts for 2018/19 could then be published by the end of July 2019 deadline.

 

The Committee was reminded that, as mentioned above, the work of the External Auditor remained in progress with a small number of actions outstanding. Further issues could therefore emerge and delegated authority was sought for the Head of Finance, Revenues and Benefits, in consultation with the Chairman (or in his absence the Vice Chairman) of the Committee to enable these to be reflected in the final management representation letter and / or the Statement of Accounts before publishing.

 

Aphrodite Lefevre (Director and Engagement Lead) and Nuwan Indika (Audit Manager) attended the meeting on behalf of the Council’s External Auditor, BDO LLP, formally presented its Audit Completion Report to the Committee and, in addition, gave updates to Members where matters had moved on since the report had been submitted to the Council on 25 July 2019 and responded to the Committee’s questions thereon.

 

Having considered and discussed all of the information submitted it was:-

 

RESOLVED that -

 

1.   in respect of the External Auditor’s Audit Completion Report for the year ended 31 March 2019, the Audit Committee:

 

(a) notes the contents of that report including the adjustments to the Statement of Accounts as set out on pages 19 to 20 of the report;

 

(b) approves the management representation letter, as set out as Appendix D (pages 37 to 39) to the External Auditor’s Audit Completion Report;

 

(c) authorises the Head of Finance, Revenues and Benefits and the Chairman (or failing him the Vice-Chairman) of the Committee to sign the management representation letter for forwarding to the External Auditor;

 

(d) approves for publication the audited Statement of Accounts for 2018/19, amended for the adjusted items identified; and

 

(e) authorises the Head of Finance, Revenues and Benefits, in consultation with the Chairman (or failing him the Vice-Chairman) of the Committee to make amendments to the management representation letter for forwarding onto the External Auditor and / or Statement of Accounts 2018/19 before publication, if further changes are recommended by the External Auditor following the completion of the outstanding areas of their work.

 

2.   in respect of the Council’s Annual Governance Statement 2018/19, the Audit Committee:

 

(a) approves the revised Annual Governance Statement, as set out in Appendix A to item A.3 of the Report of the Deputy Chief Executive; and

 

(b) authorises the Chief Executive and the Leader of the Council to sign the approved Annual Governance Statement.

 

Supporting documents: