Agenda item

This report covers Grant Thornton’s audit findings and presents the Financial Statements for 2016/17 following the external audit of the accounts. 

The Committee:

(1)          Received the Audit Findings for 2016/17;

(2)          Received the Financial Statements for the year ended 31 March 2017;

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

(4)          Agreed that the Chairman of Strategy and Resources Committee and the Acting 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 2017 to the Acting Director of Finance and Resources in consultation with the Chairman of the Strategy and Resources Committee;

(6)          Accepted the proposed re-appointment of Grant Thornton as the Council’s external auditor for five years from 2018/19 to 2022/23.

The Committee were presented with the findings of the External Auditors, Grant Thornton and received the Financial Statements for 2016/17 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.

Mr Oyerinde reported that the auditors anticipated providing an unqualified audit opinion in respect of the financial statements.  At the date of the meeting, third party investment confirmation was still awaited from Goldman Sachs and Deutsche Asset Management and alternative procedures had been put in place to the auditor’s satisfaction. Officers had been supportive and provided additional information as required throughout the audit.  Mr. Oyerinde highlighted that in terms of key findings, there were some minor disclosure errors that needed to be addressed.  However, the Council was well placed for the closure of its accounts being brought forward. No significant control issues had been identified but the report highlighted two internal control issues relating to part disclosure and year-end creditor balance.  This unadjusted misstatement was not considered material and management had undertaken to review all year-end creditor balances relating to grant income and write down the balance appropriately in future. In terms of the Value for Money conclusion, it was considered that risks around leadership had been mitigated but needed to be kept under review.

The Committee was reminded that the Council had signed up to the national auditor appointment scheme run by Public Sector Audit Appointments Ltd. (PSAA). PSAA has proposed the re-appointment of Grant Thornton as external auditor for five years from 2018/19.  It was confirmed that the Council would see a reduction in audit fees and that this would be in the region of 18% in 2018/19.

In response to a query on the Statement of Accounts 2016/17, it was confirmed that the amount of National Non Domestic Rates income retained by this Council would vary depending on the baseline figure set by central Government but was currently around 6%.

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 particular, the Council wished Interim Accountant Grant Miles well for the future and welcomed Brendan Bradley, the Council’s new Chief Accountant.

Accordingly, the Committee:

(1)          Received the Audit Findings for 2016/17;

(2)          Received the Financial Statements for the year ended 31 March 2017;

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

(4)          Agreed that the Chairman of Strategy and Resources Committee and the Acting 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 2017 to the Acting Director of Finance and Resources in consultation with the Chairman of the Strategy and Resources Committee;

(6)          Accepted the proposed re-appointment of Grant Thornton as the Council’s external auditor for five years from 2018/19 to 2022/23.