Speakers:
Barry Stratfull, Chief Accountant (Corporate)
Ciaran McLaughlin, Grant
Thornton
Ade Oyerinde, Grant Thornton
Mark Hak-Sanders, Strategic Finance Business
Partner
Neil Mason, Assistant Director
Pensions (AD Pensions)
Key
points raised during the discussion:
- The Chief Accountant
introduced the Statement of Accounts and the letter of
representation. It was an anticipated
unqualified opinion. No matters were
outstanding that would require changes to this opinion. Changes were made to the Statement of Accounts and
these were highlighted in the report.
- The representatives
from Grant Thornton provided Members with a detailed summary.
Members noted the following:
·
There was an adjustment of £45m to the Pension
Account due to adjustments in values.
·
The management representation letter would be signed
off tomorrow
·
Value for money work was still outstanding at the
moment, but the deadline of 28 February would be met
·
The final statement would be presented to the
Committee in January with the Annual Report.
·
Thanks were extended to the Finance and Pension
teams for the good working relationship had with the
auditors.
·
Three properties had been missed off the revaluation
list.
·
Reliance on the auditing of subsidiaries, by
external auditors, was mentioned in terms of timing for receipt of
their papers in order for Grant Thornton to do their
work. Papers were received very late
which meant additional time and challenge for Grant
Thornton.
- The Strategic Finance
Business Partner explained why the three investment properties were
not valued in that they were included on the list provided to
external valuers so there was not a problem with internal
process. However, the valuation was not
done by the deadline and officers were working with valuers on the
issue of lateness. The external valuers
had experienced a resourcing issue.
- The
Chief Accountant explained that the Council have to
publish draft accounts before district and boroughs councils close
their accounts. Therefore, a decision
was made that because there would be no material effects, in terms
of impact, on the accounts, to produce the draft with district and
borough collection fund updates and add in changes
later. He also confirmed that this was
not the first time district and boroughs had been late with
producing their information and was working with them to try to get
reports in on time.
- The Strategic Finance
Business Partner went on the explain that covid had had an impact
on resourcing of what were often small finance teams of district
and borough councils and that this was a nationwide issue. He also
stated that officers met with district and boroughs finance on a
monthly basis to discuss these types of issues. Realistically, he suspected that the accounts
would never be in their final form at the draft stage.
- Members requested
access to the Value for Money work as soon as possible. Grant
Thornton explained that the report was being checked for accuracy
and would be finalised before Christmas and presented to Committee
in January.
- Members asked whether
the Finance team were comfortable with the current policy and
recommendation around Minimum Revenue Provision (MRP) and whether
it would be reviewed in light of the repeat
recommendation. Grant Thornton stated
that they were happy that it was not unlawful but did depart from
statutory guidance in a small number of areas which was allowed.
The Strategic Finance Business Partner
explained the departure in detail, for new Members, and how this
would be reviewed in future.
- The Committee
requested a regular report with fuller detail on MRP in order to
monitor. The Strategic Finance Business
Partner stated that he would provide a fuller response as part of
the Treasury Management Strategy paper that was to be considered by
the Committee in January and would review how to report in
future.
- A precis of the Eco
Park issues was requested and explained to the
Committee.
Actions/ further information to be provided:
The Strategic Finance Business
Partner stated that he would provide a fuller response as part of
the Treasury Management Strategy paper that was to be considered by
the Committee in January and would review how to report on MRP in
future.
Resolved:
1.
That the 2020/21 Statement of
Accounts, as attached in Annex A to the submitted report, be
approved for publication on the council’s website.
2.
That the Executive Director of
Resources’ letter of representation, attached as Annex C to
the published report be approved.