Issue - meetings

Because of reporting timetable arrangements the report has been marked “To Follow”.

The External Auditor (EY) submitted the Audit Results report for 2017/18.  She referred to the Executive Summary of their preliminary audit conclusions.  The External Auditor stated that some outstanding matters needed to be resolved which were detailed in Section 3 of their report.  These related to: 

·        Journals testing.

·        Payroll differences / testing.

·        Final Audit Manager and Associate Partner review of the audit work completed.

·        Review of the final version of the financial statements.

·        Completion of subsequent events review.

·        Receipt of the signed management representation letter.

Subject to the above issues being resolved, EY expected to issue an unqualified audit opinion on the financial statements before the statutory deadline of 31 July 2018.  

The External Auditor provided updates in relation to the Executive Summary including:

·        Understatements in relation to debtor and creditor figures.

·        Pension discounts and the impact on the pension reserves.

·        Virgin Media and NNDR Appeals provision.

In response to a query from the Committee Chairman, the Head of Strategic Finance and Property explained that there were a number of ongoing (NNDR) appeals and further information would be provided to EY when the Officer returned from leave.  The Head explained that the tighter timetable in which to produce the draft accounts had impacted on the pensions estimate provided by the County Council’s actuaries.  She provided an update in relation to understatements in relation to debtor and creditor figures.

The Committee Chairman sought and was provided with clarification on a number of queries:

·        whether independent partners reviewed the accounts;

·        what had impacted on the Auditor’s final fee for 2017/18;

·        the Housing Subsidy deadline claim and last year’s administrative assistance by the Council;

·        how well the audit had progressed; and

·        the early deadlines and how this impacted on both EY and Council Officers.

The Chairman, on behalf of Members thanked EY for their report.

It was moved by Councillor L Radford and seconded by Councillor J Wyllie that the Auditor’s Results Report be received.  After being put to the meeting and and a vote taken the recommendation to receive the report was CARRIED

RESOLVED - that the External Auditor’s report be received.