The purpose of this report is to receive the Council’s Statement of Accounts, as well as to inform the Committee of the result of the external audit of the council’s 2016/17 Statement of Accounts, to receive the external auditor’s Audit Findings Report and to approve the council’s letter of representation from the Chief Finance Officer and Deputy Director for Business Services.
Minutes:
Declarations of interest:
None
Witnesses:
Nikki O’Connor, Finance Manager
Jonathan Evans, Principal Accountant
Ciaran McLaughlin, Grant Thornton
Key points raised during the discussion:
a) Capital underspends occurred due to both delays in projects and in some cases projects not occurring. Carry forwards were only approved for projects that were delayed and not for those that were no longer required. This was reviewed throughout the year and it was unusual not to have a carry forward as slippage in capital schemes was common.
b) There was some discussion about social care debt. It was agreed that this was a sensitive area and one which was constantly being reviewed. The Finance Manager confirmed that the bad debt provision was calculated based on the age of the debt.
c) The Finance Manager confirmed that the accounts of the council’s trading companies are on the agenda to be presented to the December meeting of this committee.
d) It was recognised that the primary statements could be very difficult for the layman to read and understand but that the Director’s narrative report would help the reader to understand what the figures mean in simple terms and highlight the key messages.
6. Grant Thornton confirmed that they expected to issue an unqualified opinion on the financial statements and that in relation to value to money, they were satisfied that in all significant respects the council had put in place proper arrangements to secure economy, efficiency and effectiveness in the use of its resources for the year ended 31 March, with the exception of the arrangements for management of children’s services due to the findings of Ofsted, published in their June 2015 report. This ‘except for’ opinion is the same as issued in previous years and would remain the case until Ofsted issue a revised opinion.
Actions/ further information to be provided:
1) To request that the Finance Manager email a copy of the narrative report by the Director of Finance to the Chairman to circulate to all Members of the Council with a covering letter highlighting where a full version of the accounts could be found. (Tracker A9/17)
2) That graphs used in future reports do not rely on colour for their understanding.
3) That the Financial Health risk identified in the VfM section of the auditor’s report be written in past tense and highlight that this was identified as part of the Audit Plan in February and that the then planned Council Tax referendum did not occur. (Tracker A9/17)
Resolved:
1. That the 2016/17 Statement of Accounts, as in Annex A to the submitted report, be approved for publication on the council’s website and in a limited number of hard copies.
2. That the 2016/17 Audit Findings Report in Annex B to the submitted report be noted.
3. That the officer response to recommendations of the external auditor be noted.
4. That the Director of Finance’s letter of representation, in Annex C to the submitted report be noted.
5. That there were no issues in the Audit Findings Report that should be referred to the Cabinet.
Reason for decision:
To fulfil the committee’s role in providing an independent and high level focus on financial accounts matters.
The Committee adjourned for a comfort break at 12.10pm and reconvened at 12.15pm.
Supporting documents: