Issue - meetings

(External Auditor) To consider the attached report (AGC-010-2015/16).

The External Auditor presented the Annual Audit Letter for 2014/15.

The External Auditor stated that the Annual Audit Letter summarised the key issues arising from the audit work carried out during the year. In respect of the Financial Statements, one material misstatement was identified and corrected relating to the incorrect input of data into the Asset Management System. As a result of this misstatement, the balance on the Revaluation Reserve was overstated by £6.6million with the balance on the Capital Adjustment Account understated by the same amount. There were also two unadjusted differences identified by the Audit, mainly relating to the incorrect treatment of grant income which was recognised as a credit on the Balance Sheet rather than as income in the Comprehensive Income and Expenditure Statement. These would increase the surplus on the provision  of services by £1million to £14.6million, and were not considered to have a material impact on the financial statements. An unqualified true and fair opinion on the financial statements was issued on 30 September 2015 and it was confirmed that the Annual Governance Statement was neither misleading nor inconsistent with other information arising from the Audit.

Aside from the financial statements, the External Auditor reported that they were satisfied the Council had proper arrangements in place to secure economy, efficiency and effectiveness in its use of resources; therefore, an unqualified Value for Money conclusion had been issued. The External Auditors had found no reason to exercise their statutory powers and that there were no matters to report to the Committee. The review of Grant Claims and Returns was in progress and a number of errors was highlighted to the Committee. However, the results would be reported to the Committee upon completion of this work at its next scheduled meeting. An Audit Certificate to close the Audit for the year ended 31 March 2015 was issued on 30 September 2015.

In response to questions from the Committee, the External Auditor stated that it was perfectly normal for the Housing Benefit Subsidy Claim to highlight a number of issues. It was a multi-million pound claim and issues were highlighted every year. The detailed report to be considered by the Committee at its next meeting would indicate the small scale of the issues identified by the Audit. The Committee was pleased to note that an unqualified opinion had been given by the External Auditors.

Resolved:

(1)        That the Annual Audit Letter issued by the External Auditor for 2014/15 be noted.

(Director of Resources) To consider the attached report (FPM-019-2015/16).

The Director of Resources presented a report on the External Auditor’s Annual Audit Letter, which would be presented to the Audit and Governance Committee on 30 November 2015. The report had been placed on this agenda to ensure that Members of this Committee were aware of the key issues raised.

The Director of Resources advised that the Annual Audit Letter (AAL) confirmed that the Financial Statements gave a true and fair view of the Council’s financial affairs and that the Annual Governance Statement contained in the Financial Statements was not misleading or inconsistent with other information. The external auditors were able to satisfy themselves that the Council had proper arrangements in place to secure economy, efficiency and effectiveness in its use of resources, which enabled them to issue an unqualified value for money conclusion. The AAL confirmed that the auditors had not needed to exercise their statutory powers and that they had no matters to report. An audit certificate to close the audit for the year ended 31 March 2015 had been issued on 30 September 2015.

Resolved:

(1)        That the External Auditor’s Annual Audit Letter be noted.

Reasons for Decision:

To ensure that Members were informed of any significant issues arising from the annual audit.

Other Options Considered and Rejected:

The report was for noting, no specific actions were proposed.