Issue - meetings

This report covers Grant Thornton’s audit findings and presents the Financial Statements for 2015/16 following the external audit of accounts

The Committee:

(1)          Received the Audit Findings for 2015/16;

(2)          Received the Financial Statements for the year ended 31 March 2016;

(3)          Agreed the management action in response to audit recommendations;

(4)          Agreed that the Chairman of Strategy and Resources Committee and the Director of Finance and Resources sign the Letter of Representation on behalf of the Council;

(5)          Delegated any further amendments to the Financial Statement for the year ended 31 March 2016 to the Director of Finance and Resources in in consultation with the Chairman of the Strategy and Resources Committee.

The Committee were presented with the findings of the External Auditors, Grant Thornton and received the Financial Statements for 2015/16 following the external audit of the accounts.

Mrs. Liz Jackson, Associate Director, and Mr. Ade Oyerinde, Audit Manager, Grant Thornton UK LLP were in attendance.

Mrs. Jackson reported that the auditors anticipated providing an unqualified audit opinion in respect of the financial statements.  No issues had been identified against the significant risks identified in the Audit Plan.  Whilst the auditors had a few minor comments on the working papers, these were of good quality and Officers were supportive and provided additional information as required throughout the audit.  Two adjustments were required to the draft accounts and four minor misclassifications and disclosure changes were identified.  Any adjustments required had been agreed and implemented and did not affect the Council’s reported outturn position or cash reserves.  No unadjusted misstatements had been identified during the auditors’ audit testing.  The auditors made one recommendation regarding regular monitoring of the financial position throughout the year in light of the stretched capacity of the finance and leadership team but also planned to issue an unqualified conclusion on Value for Money.  It was confirmed that all areas of the audit were now complete.

Interest and concern was expressed over the pension fund liability, particularly its volatility with the discount rate and link to equity bonds.  However, it was noted that this was something that the Council had limited control over and it was suggested that a briefing session on the pension fund and triennial review might be useful.

The Committee wished its thanks recorded to Auditors in the undertaking of the audit and to the Finance Team for its hard work which ensured that the Council received such an excellent report.  In response to a question in regard to the level of understanding and depth of enquiry required of Members when scrutinising the Audit Report, the Auditors confirmed that the role of Members was to question them on their work and judgements rather than to engage in detail on the auditing process itself.

Accordingly, the Committee:

(1)          Received the Audit Findings for 2015/16;

(2)          Received the Financial Statements for the year ended 31 March 2016;

(3)          Agreed the management action in response to audit recommendations;

(4)          Agreed that the Chairman of Strategy and Resources Committee and the Director of Finance and Resources sign the Letter of Representation on behalf of the Council;

(5)          Delegated any further amendments to the Financial Statement for the year ended 31 March 2016 to the Director of Finance and Resources in in consultation with the Chairman of the Strategy and Resources Committee.