Statutory Statement of Accounts 2018/19
Members were presented with the audited Statement of Accounts for 2018/19 for approval and the committee was asked to give their approval for the Chair of the Finance & Audit Committee to sign the audited Statement of Accounts for 2018/19 and the Letter of Representation.
The Assistant Director (Corporate Services) advised that the draft Statement of Accounts for 2018/19 was prepared by 30 May 2019 and was considered by Members of the Finance & Audit Committee and the wider Member Body at two officer-led training sessions held on 8 July 2019.
The Assistant Director (Corporate Services) explained to Members that the audit process identified some issues within the Statement of Accounts, as reported to Members in the Audit Findings Report, and four adjustments have been made to the draft statement which were listed with their associated details at appendix 2 on page 45:
1. HRA Council Dwelling Valuations – £13,211K Adjustment Made
2. Bank Sweep Balance of £1,643K – £1,643K Adjustment Made
3. Miss-classification of £311K income within “Expenditure and Income Analysed by Nature” – £311K Adjustment Made
4. Other minor corrections and additional wording in disclosure notes has been added to the final accounts as suggested, and in accordance with the external audit process – Various Adjustments Made
An updated Statement of Accounts, reflecting these adjustments, had been presented to Members at Appendix 3.
The Assistant Director (Corporate Services) advised Members that attached at appendix 4 was the Letter of Representation. This requires the council to confirm that the financial statements have been prepared on a proper basis and provide a true and fair view of the council, and are to be signed by the Chair of the Committee.
Linked to this, the Assistant Director (Corporate Services) drew Members attention to Appendix Five, the updated final response to the Letter to those Charged with Governance in relation to Council arrangements for managing the risk of fraud and ensuring legislative compliance. The committee was informed that the responses listed in the report at page 165 were considered by MT and by the Finance & Audit Committee in March 2019. The response remains as at that meeting of the committee, albeit they have been updated to ensure that they cover the whole financial year 2018/19.
Given the external audit is not yet complete, the Assistant Director (Corporate Services) drew members attention to the recommendation for the Committee to give the Chair delegated authority to sign off the Statement of Accounts subject to any final amendments from the external auditors. The Assistant Director (Corporate Services) also made a commitment to the Committee to ensure that any additional changes/issues would be circulated via email.
The Assistant Director (Corporate Services) asked for the Committees approval to consider an additional recommendation to approve Appendix Five, the final response to the Letter to those Charged with Governance, which was agreed.
Following a question regarding the changes to HRA dwelling valuations and ‘unusable reserves’ on page 45, the Assistant Director (Corporate Services) advised that the adjustment was required to update the valuation of the value of these properties at a particular point in time; it did not constitute a cash transaction and therefore did not impact on the financial cash position of the council.
The Committee asked that their thanks be passed on to the Finance Team for their work to produce an excellent Statement of Accounts for 2018/19.
Resolved that Members:
- Considered the updates to the draft Statement of Accounts for 2018/19, as identified by the audit process and set out in Appendix Two to the report
- Approved the amended Statement of Accounts for 2018/19 as attached at Appendix Three to the report
- Agreed that the Chair of the Finance & Audit Committee sign the Statement of Accounts for the Council, subject to any final comments received by the External Auditor. Any further amendments required to the Statement of Accounts will be notified to Members of the Finance & Audit Committee
- Approved the Letter of Representation at Appendix Four to the report for signing by the Chair of the Finance & Audit Committee
- Approved the final response to the Letter to those Charged with Governance at Appendix Five to the report
- 1. Covering Report - Final Audited Statement of Accounts 2018-19, item 14. PDF 87 KB
- 2. Appendix Two - Reference document for adjustments to SoA, item 14. PDF 53 KB
- 3. Appendix Three - Statement of Accounts 2018-19 - Post Audit, item 14. PDF 942 KB
- 4. Appendix Four - GBC Letter of Representation, item 14. PDF 163 KB
- 5. Appendix Five - Final Response, item 14. PDF 46 KB