Agenda item

To consider a report of the Chief Officer - Financial Services which explains the requirement for the Corporate Governance and Audit Committee to approve the Council’s final audited Statement of Accounts and to consider any material amendments identified by the Council or recommended by the auditors.

(Report attached)

The Chief Officer - Financial Services submitted a report which explained the requirement for the Corporate Governance and Audit Committee to approve the Council’s final audited Statement of Accounts and to consider any material amendments identified by the Council or recommended by the auditors.

The Principal Financial Manager presented the report, Mr Richard Lee from KPMG was in attendance to respond to Members queries and questions.

  Members were informed that the external audit report provided the following assurances to Members:

·  An unqualified opinion on the 2016/17 Statement of Accounts (following consideration of an elector objection).

·  A value for money conclusion that the council had made proper arrangements to ensure it took properly informed decisions and deployed resources to achieve planned and sustainable outcomes for taxpayers and local people.

·  Confirmation that in the auditor’s opinion the Council’s Annual Governance Statement was not misleading or inconsistent with other information they were aware of from their audit of the financial statements, and that it complied with CIPFA/SOLACE guidance.

Members made reference to paragraph 3.2.4 of the submitted report which referred to the council’s liability under the Carbon Reduction Commitment, noting that a change in the scheme in 2014/15 had been overlooked, resulting in the liability being understated.

Members queried if there were any other similar returns which were not compliant.

Members were informed that at that time the checks did not identify the changes to the scheme.

Members were made aware that revised arrangements were in place to ensure sufficient checking was undertaken and that arrangements for other similar returns were being reviewed.

Reference was made to the increase in business rates appeals provision following a number of high value appeals recently being settled (Paragraph 3.2.2 of the submitted report referred).

It was suggested by one Member that recovery of full costs be pursued for any appeals settled in favour of the City Council.

Members were informed that the City Council had no involvement in the business rates appeal process and such work was the responsibility of the District Valuer.

Members noted:

• There were no high priority recommendations raised by KPMG.
• There was one objection to the accounts from an elector, which KPMG were reviewing.

RESOLVED -

(i)  To receive the report of the Council’s external auditors on the 2016/17 accounts and to note that there were no unadjusted audit differences to the accounts.

(ii)  To approve the final audited 2016/17 Statement of Accounts and request the Chair to acknowledge the approval on behalf of the Committee by signing the appropriate section within the Statement of Responsibilities of the accounts.

(iii)  On the basis of the assurances received, the Chair be authorised to sign the management representation letter on behalf of the Corporate Governance and Audit Committee.

(iv)  To note KPMG’s value for money (VFM) conclusion that the council had made proper arrangements to ensure it took properly informed decisions and deployed resources to achieve planned and sustainable outcomes for taxpayers and local people.

(v)  To note that there was one objection to the accounts which was still under consideration by KPMG, and may result in a delay in the completion of the overall audit.