To inform the Committee of the result of the external audit of the council’s 2018/19 Statement of Accounts, to receive the external auditor’s Audit Findings Report and to approve the council’s letter of representation from the Executive Director of Resources.
Annexes: (to follow)
1. 2018/19 Statement of Accounts
2. 2018/19 Audit Findings Report
3. Executive Director of Resources’ letter of representation.
An amended cover report with additional information and the annexes waspublished in the supplementary agenda on 25 July 2019.
Anna D’Alessandro, Director of Corporate Finance
Tom Beake, Grant Thornton
Ciaran McLaughlin, Grant Thornton
Leigh Whitehouse, Executive Director of Resources
Craig Tucker, Principal Accountant – Finance
Key points raised during the discussion:
· That concerning the financial statements the anticipated audit report would be unmodified with adjustments having no impact on the Council’s usable reserves.
· One additional audit adjustment since the publication of the report was provided to the Committee on a non-trivial misstatement to the valuation of land and buildings specifically on the Property, Plant and Equipment (PPE) opening balance. An erroneous interpretation of valuer guidance given in 2013/14 had now been adjusted.
a) The Executive Director of Resources explained that the Eco Park PFI was a finance lease liability under an integrated services charge. This was calculated in part on the tonnages of waste sent for disposal and the VfM cost of a reduced unitary payment would be approximately £2 million a month for an operational facility.
b) Grant Thornton informed the Committee that the actuarial calculation from the Government changes and court rulings from the impact of the McCloud and GMP equalisation on the Council’s financial position may amount to a possible increase in pension liabilities of £22 million.
c) The Principal Accountant – Finance summarised Surrey County Council’s expenditure figures. That the position on pages 10/11 showed an under spend of £0.5 million in the Council’s revenue outturn position in 2018/19, whilst page 18 showed the full service costs in respect of the £82.2 million deficit in 2018/19 in the Council’s Comprehensive Income & Expenditure Statement (CIES). The Director of Corporate Finance and the Principal Accountant agreed that they would provide greater detail to the Committee on the matter.
Actions/ further information to be provided:
That the Committee: