Decision Maker: Standards and Audit Committee
Decision status: Recommendations Approved
Is Key decision?: No
Is subject to call in?: No
The Chairman welcomed Leigh Lloyd-Thomas and Matthew Vosper from the Council’s External Auditor, BDO, to the meeting for the Auditor’s report to those charged with Governance (ISA 260) 2018-19.
The Committee was advised that the statutory responsibility of the External Auditor was to issue an opinion on the Council’s financial statements along with a value for money conclusion. An unqualified opinion was anticipated to be issued for both relating to the 2018/19 financial year. Due to the slightly later start of the Audit following the recent merger involving BDO, there were a number of areas where work had not yet been finalised which had been highlighted in green throughout the report, in particular the valuation of investment properties held by the Council and its subsidiary companies.
A total of four adjustments had been proposed to the draft Statement of Accounts published in May 2019, three of which the Council had reported to BDO prior to the Audit commencing. The remaining change related to the calculation of the pension liability due to a national issue affecting valuations for all Councils during the current year. In addition, the Audit had identified one difference of £137,000 relating to the timing of income received from the sale of parking permits. The Accounts would not be adjusted as the amount was below the level of materiality required, which was stated to be £2.6m for the Comprehensive Income and Expenditure Statement and £15.5m for the Balance Sheet.
A recommendation had been raised as a result of the audit work relating to the processes in place to ensure income and expenditure were recorded in the correct year. In addition, the Committee was advised that in future years BDO would suggest changes to the formatting of the Accounts in light of CIPFA guidelines on presentation. It was noted that changes would be considered, however it was important that they made a positive contribution towards enhancing accessibility for members of the public.
RECOMMENDED TO COUNCIL
That the report to Those Charged with Governance (ISA 260) 2018/19 be received.
Report author: Leigh Clarke
Publication date: 07/08/2019
Date of decision: 18/07/2019
Decided at meeting: 18/07/2019 - Standards and Audit Committee