Agenda item

This report covers Grant Thornton’s audit findings and presents the Financial Statements for 2014/15 following the external audit of the accounts.

The Committee received the findings of the external auditor, Grant Thornton, on the Council’s Financial Statement for the year ended 31 March 2015.  Mr. Christian Heeger, Director, and Ms. Liz Olive, Senior Manager, of Grant Thornton UK LLP (the Council’s external auditors) were in attendance.

Mr. Heeger reported that, in conducting the audit, it had not been necessary to alter or change the planned audit approach as set out in the Audit Plan dated 12 March 2015 and that the outstanding work set out in the introduction of the Executive Summary had been completed.  Mr. Heeger praised the high quality of the working papers which accompanied the financial statements.  It was anticipated that an unqualified opinion would be issued and the adjustments identified as required were not unexpected/exceptional in the context of such complex accounts.

In response to questions/comments from the floor, the following points were noted:

·         It was confirmed that the in-house solicitor (also the Council’s Monitoring Officer) had given the Auditors the assurance required in respect of legal claims against the Council;

·         Scale fees for audit services had been reducing year on year;

·         Significant movement in the Corporate Project Reserve had been generated by income from New Homes Bonus (£500k of which was being used to fund services, the remainder going into this reserve).  This reserve had been used to fund the DMA (item 24 refers) and to purchase 102 Upper High Street;

·         In respect of capital commitments, it was confirmed that this represented spend to which the Council was committed and was not intended to take account of any funding from external sources such as insurance;

·         The pension fund deficit was growing in response to which the Council was making additional contributions in mitigation.  The fund needed to be financially sustainable over a twenty-year period and this had been taken into account in drafting the Council’s Medium Term Financial Strategy. The plan would be adjusted to take into account the outcome of the triannual review of the fund which was due to take place next year;

·         Fixed asset valuations: £51m related to the buildings element. The figure of £64m included plant and equipment.

·         Movement on Non-current Asset Statement:  typographical error would be corrected.  The correct figure was £1.561m not £1,561m.

The Committee wished its thanks recorded to the Finance Team.  It was noted that the Council had never received a poor report but this was an excellent one, especially in relation to Value for Money which made all the points members would want to hear, particularly regarding member engagement in financial planning and monitoring.

Having received the Audit Findings for 2014/15 and the Financial Statements for the year ended 31 March 2015, the Committee:

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

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

(3)       Delegated any further amendments to the Financial Statement for the year ended 31 March 2015 to the Director of Finance and Resources in consultation with the Chairman of the Strategy and Resources Committee.