Issue - meetings

“To Follow”

The External Auditor submitted a report setting out key matters which had arisen following the audit for the year ended 31 March 2014.  The External Auditor explained which areas were still being progressed, the detail of which was set out in the report.  Subject to the completion of these areas, the External Auditor anticipated providing an unqualified opinion on the financial statements.  Apart from a small number of presentational changes and typographical errors, key messages arising from the financial audit were:

·              that the financial statements had been provided on time;

·              of the need to consider “de-cluttering” of the accounts in future years; and

·              of the need to consider updating asset revaluation procedures in the light of changes to the CIPFA Code.

The External Auditor provided Members with a summary of the report.  It was noted that the External Auditor had received a question about the accounts which needed to be evidenced before the accounts could be closed.  The External Auditor confirmed that questions on the accounts could be raised as long as the accounts remained open.

In response to a query from Councillor M Pope regarding revaluations, the Director of Finance and Support Services advised that the Council would use their network of different authorities to gain advice and would seek as much guidance as possible from CIPFA.  The External Auditor explained that clarification was needed from CIPFA on the definition of a “short period of time”.

The External Auditor referred to the question of the Council’s levels of reserves.  The Director of Finance and Support Services explained that this question had been raised at a recent meeting of Corporate Business Scrutiny.  The Director stated that this matter would be considered further by Members, before the Council set its budget in January 2015.  The Director of Finance and Support Services advised Members that, had the Council not stated within its policy a maximum level of reserves, then the performance indicator would be showing in the report as “green” and not “amber”.

In response to a query from Councillor D Andrews regarding the question raised by a member of the public and the publication of the accounts, the External Auditor explained that it was not usual to publish questions raised in the accounts.

The Chairman suggested that “de-cluttering” the accounts might be included on the work programme as a future training item.  This was supported.  Councillor M Pope was concerned that taking out too much information might be detrimental to understanding the accounts.

The Chairman thanked the External Auditor for their unqualified opinion, adding that it was comforting to know that the authority was so well run.

The Director of Finance and Support Services also thanked the External Auditor and the accountancy team for their efforts in producing the accounts.

The Committee received the report.

RESOLVED – that (A) the report be received; and

(B)   Officers be thanked for their help in co-ordinating the audit process.