Agenda and minutes

1.1  There were no apologies for absence.

2.1  Councillor Odze declared an interest in item 3 being a beneficiary of the Local Government Pensions Scheme.

3.1  Ian Williams introduced the report. He thanked the team for the report together with the Auditors who had worked constructively with officers on this, creating a robust relationship, reaching a position where the accounts had been completed, despite judgments around pension entitlements. Ian Williams told the Committee that the Council’s financial position continued to be robust.

3.2  Lucy Nutley referred to the good relationship and engagements with officers of the Council and had been a learning process given that this was the company’s first year as Auditors for the Council. The accounts had been produced a week before the deadline.  The income/ expenditure work awaited five pieces of evidence. The narrative for the annual governance statement depended on receiving separate. This would be confirmed on. Lucy Nutley told the Committee that risks had been identified.  She told the committee that due to the high degree of estimation uncertainty associated with the valuation of lands and buildings this was considered to be a significant risk.  There were no significant findings arising from the review of property, plant and equipment valuation.  Review of valuations in the year had identified an error in recording of valuations within the financial statements. This had been adjusted in the audited accounts.

3.3  Ian Williams told the committee that discussions were underway on how to improve the accounts and working closer in teams on property valuation. He confirmed that regular valuations were carried out.  Officers would consult with the auditors to ensure that they were comfortable with the assumptions made. Discussions would be carried out more widely to ensure that matters are dealt with in a consistent way.

3.4 In relations to the Defined benefit liability valuation the review identified two matters:

·  The impact of GMP equalisation may not be fully included in the LGPS annual IAS 19 valuations; and

·  The impact of a legal case held during the year (known as the Mc Cloud  case), concerning potential age discrimination in relation to transition provisions as part of the pension reform measure, had not been included in any LGPS annual IAS 19 valuations. This did not affect the Pensions Fund. 

3.5  A review had been carried out into the proposed accounting treatment for the Nile Street, Tiger Way and Anthology developments and as appropriate for the 2018/19 financial statements, although discussion continued to the proposals and impact on the 2019/20 financial statements. Ian Williams confirmed to Councillor Gregory that Nile Street was not over budget. The Chair stressed the need to have a better understanding of these companies. Ian Williams agreed to arrange a tour of Nile Street.

  Action: Ian Williams 

3.6  The Committee noted that that the developer had rescinded the offer and had subsequently settled the debt in cash.

3.7  Lucy Nutley reported that no questions or objections had been received in relation to the 2018/19 accounts. During the year, PSAA appointed Mazars LLP to undertake work on the objection raised in 2016 /17 relating to PFI. Work was ongoing on this and a  ...  view the full minutes text for item 3.

4.1 Michael Honeysett introduced the report presenting the Accounts for 2018/19 for approval by the Audit Committee prior to the issue of the audit opinion by the external auditor. The main financial statements show that we continue to manage the Council’s finances in line with the resources available.  Michael Honeysett told the Committee that officers were still in the final stages of completing the accounts and that it was anticipated that there would be an unqualified opinion by the end of July. He referred the Committee to the statements attached to the report.

RESOLVED:

1.  Approve the Council’s 2018/19 Statement of Accounts prior to the audit opinion being issued.

2.  To approve, in its own right, the Annual Governance Statement contained within the Statement of Accounts.