Agenda item

To consider the Auditor’s Report, Annual Governance Statement, the Letter of Representation and the Annual Financial Report.

With the aid of a report by the Chief Finance Officer (a copy of which is appended in the Minute Book) the Committee were informed of the progress for finalising and publishing the Council’s Annual Governance Statement (AGS) and Annual Finance Report (AFR) for 2019/20.

Having welcomed Mr S Patel of Ernst & Young LLP to present the Audit Results Report which summarised the preliminary audit conclusions, Mr Patel extended his thanks and appreciation to Officers, Members and the Finance Team for assisting with the audit during these challenging times. He then went on to explain that the audit was originally due to be completed in July/August 2020 but that there had been delays owing to issues with the valuation report and outstanding queries. Attention was drawn to the areas where audit work was yet to be completed which included a final review of the updated Annual Governance Statement. Reference was also made to the three audit differences which would not have a material impact upon the accounts, together with the areas of audit focus and the findings and conclusions which had been reached. Having regard to the low level of returns from Members in relation to third party disclosures, the Chairman requested that in future, he should be alerted to low returns with a view to exerting some influence over generating a satisfactory response from Members.

The Chief Finance Officer then drew the Committee’s attention to the updated Annual Governance Statement, Letter of Representation and the Annual Financial Report drawing attention to historical accounting errors which had now been corrected within the accounts.

A number of questions had been raised and responded to at the meeting. Matters that were discussed included the use of third party professionals to carry out property valuations on behalf of the Council, confirmation that the Council would not be subject to financial penalties as a result of delays with approving and finalising the final accounts, whether the figure identified for sundry debt arrears were a cause for concern and clarity on the Collection Fund and General Fund Balance.

Having extended their thanks and appreciation to Officers and the Finance Team for their hard work in preparing the final accounts, it was

RESOLVED

(a)  that the Auditor’s Results Report as attached as Annex A of the report now submitted be received and noted;

(b)  that the Annual Governance Statement as attached as Annex B of the report now submitted be approved and the Executive Leader and Managing Director be authorised to sign the Statement on behalf of the Council;

(c)  that the Letter of Representation as attached as Annex C of the report now submitted be approved and the Chief Finance Officer (as Section 151 Officer) be authorised to sign it on behalf of the Council; and

(d)  that, subject to the auditors confirming an unqualified opinion on the Annual Financial Report 2019/20, delegated powers be given to the Chairman of the Committee and Chief Finance Officer (as Section 151 Officer) to authorise and sign the Annual Financial Report, as attached as Annex D of the report now submitted, on behalf of the Council.