Agenda item

  To consider a report of the Chief Finance Officer which presents the Council’s final audited Statement of Accounts for approval subject to consideration of any material amendments identified by the Council or recommended by the auditors.

  (Report attached)

The Chief Officer - Financial Services submitted a report which sought approval of the Council’s final audited Statement of Accounts and to also consider any material amendments identified by the Council or recommended by the auditors.

Members were informed that the External Auditors (Grant Thornton) were nearing completion of their audit of the final accounts, their report and findings are included within the submitted report.

It was reported that since the publication of the draft accounts two post balance sheet events had occurred which required adjustment of the accounts. The most significant of these was to the value of the Council’s pension liabilities as a result of the McCloud Judgement and Guaranteed Minimum Pensions (£47.4m adjustment required). A small number of corrections to asset values had also been made.

Following publication of the revised accounts for consideration by the Committee, one additional asset valuation had been identified which required further adjustment - an increased asset valuation of £15m in respect of the John Charles Sports Centre.

·  Members were also advised that :

·  The accounts have been certified by the Chief Finance Officer as a true and fair view of the Council’s financial position as at 31^st March 2019. A copy of the final version of the accounts for approval incorporating the final asset valuation correction was circulated to Members at the meeting.

·  During the 2018/19 public inspection period, no objections were received from local electors.

Addressing the External Auditors report, Gareth Mills (Grant Thornton) spoke on the main issues which included:

·  Grant Thornton anticipate being able to issue an unqualified opinion on the 2018/19 Statement of Accounts;

·  There are no unadjusted audit differences affecting the financial statements;

·  The review of the Annual Governance Statement has concluded that it is not misleading or inconsistent with information they are aware of from their audit of the financial statements, and that it complies with CIPFA/SOLACE guidance;

·  The review of value for money arrangements had concluded 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.

Commenting on the business rates, paragraph 3.2.4 of the submitted report, Members queried if the post balance sheet event affecting business rates valuations was an indication that business rates appeals were likely to increase again in the future.

Members were informed that the increase in the required provision related to specific issues rather than a general rise in appeals. However it was noted that although the new appeals process introduced from April 2017 has so far led to a reduction in appeals, it is not yet clear whether this will be the long term impact.

Commenting on the key judgements and estimates, land and buildings – Council Housing (page 172 of the submitted report). Members noted that the in-house valuation had been undertaken in September 2018, but it was the view of the external auditors that valuation should take place at year-end (31^st March)

In responding Mr Mills said that ideally valuations should take place at year –end as it provided a greater degree of comfort that they were appropriate at the balance sheet date.

The Chair noted the practical difficulties of valuing a large number of properties over a short period of time, and suggested a bespoke recommendation was required and not a standard one.

Mr P Sethi (Grant Thornton) said auditors required an appropriate valuation at year-end and it was also beneficial to include other issues at the same time.

The Chair thanked officers and the representatives from Grant Thornton for their attendance and contributions.

RESOLVED –

(i)  To receive the report of the Council’s external auditors on the 2018/19 accounts noting there were a small number of adjustments required to the accounts.

(ii)    That the final audited 2018/19 Statement of Accounts be approved and the Chair be requested to acknowledge the approval on behalf of the Committee by signing the appropriate section within the Statement of Responsibilities on page 1 of the accounts.

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

(iv)  To note Grant Thornton’s Value for Money (VFM) conclusion that the council has made proper arrangements to ensure it took properly informed decisions and deployed resources to achieve planned and sustainable outcomes for taxpayers and local people.