Agenda item

RESOLVED:

1.  To approve the Council’s 2019/20 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.

5.1   Michael Honeysett introduced the report on the accounts for 2019/ 20 for approval by the Audit Committee prior to the issue of the audit opinion by the external auditor. The main financial statements showed the Council continued to manage its finances in line with the resources available. The final report on the accounts would be circulated to members of the Committee prior to sign off.

5.2   Michael Honeysett highlighted the following matter:

·  The regulations required completion of draft accounts by 31 May but because of Covid-19 the deadline was pushed back to 1 August 2020 for 2020

·  Accounts had been produced by mid-june and published

·  The deadline for approval by audit opinion was now 30 November with a certificate soon after

·  An unqualified audit opinion was expected

·  A balance of £15m maintained on the general fund

·  HRA general balance reduced to £11.2m from 15m in the previous year

·  Further reserves of just over £5m

·  Locally managed schools balance reduced by £1.76m to just over £13m

·  Earmarked reserves of £11.6 to the general fund

·  Overspend on the general fund in 19/20 of 9.3m covered by collection funds and grants received

·  Implemented the savings necessary for 2019/20 financial year to help balance the accounts

·  Net assets of over 3  ½ billion pound with the biggest element, buildings land and property

·  Provisions for known liabilities and details of contingent assets and liabilities

·  The collection fund account: Council tax surplus for 2019/20 of £2.7m/A deficit on the business rates collection fund of balance of  £692,000

5.2 Michael Honeysett referred to the Council’s subsidiary companies in the areas of housing and regeneration and for mixed use development. Two of those companies had been grouped.

5.3 Michael Honeysett referred the Committee to the Annual Governance Statement that required to be approved in its own right. Among other matters the Statement updated on the four significant issues that identified 2018/2019 and how they were addressed in 2019/20. It had picked up on four significant government issues:

·  Covid-19

·  Cost pressures in adult and children services

·  Issues relating to the Ofsted inspection

·  Housing Contract Management

5.4 Councillor Clare Potter asked about how FRC audit work in 1918/19 and the areas not deemed to be at a required standard such as valuations of pension fund assets, capital grants and completeness of expenditure.  She said that Mazars had said that this did not have any significant impact and had been addressed in 2019/20. Councillor Potter asked how these matters had been satisfactorily addressed. Lucy Nutley told the Committee that in relation to building, plant and equipment the FRC had set out a schedule detailing where it considered that insufficient work had been carried out. All those comments were included in the audit programme. FRC comments on capital grants and completeness of expenditure was incorporated into work carried out in the current year. In relation to the valuation of Pensions fund assets it was recognised that the work carried out for the Pensions Fund was not sufficient for the Local Authority. The Chair reiterated concern that the issues that the FRC had identified were taken up in the way described. He stated that he was now reassured in this regard. Ian Williams stated that the Council had assets of £5m but that it could not leverage any debt against. However, the Auditors must provide evidence and effectively undertake visits to check on the presence of schools. FRC had considered that this had not been carried out satisfactorily. 

5.6  Tracy Barnett told the Committee that the work that been carried out by the Audit Committee on deep dives had been added to the Annual Governance statement.

RESOLVED:

1.  To approve the Council’s 2019/20 Statement of Accounts prior to the audit opinion being issued, subject to the circulation of the final report prior to sign off.

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