Agenda item

Report of the Director of Corporate Resources to present the Statement of Accounts for 2012/13 following the completion of the external audit and to consider the statutory Annual Report to those charged with Governance from Grant Thornton which reports on their annual audit of the Council’s statutory accounts, value for money and other relevant information.

The Committee received the Statement of Accounts 2012/13 and ISA 260 audit report. It was noted that the report reflected a significant improvement from the previous year, and the auditors’ report indicated that there would be an unqualified audit opinion.

In response to a question from the Committee regarding the level of reserves, it was reported that the level reflected in the statement of accounts was partly due to the timing of transactions, and there had also been a small increase due to underspends; the audit report moreover indicated that the Council’s level of reserves was comparatively low. The Committee noted that publicity was not included in this year’s report, but had been previously, and asked why this was. Officers reported that it was not a statutory requirement to include publicity details and it was therefore omitted in order make the statement of accounts as succinct as possible. It was agreed that a briefing on the publicity figures would be circulated outside the meeting, but would not form part of the formal accounts. Paul Dossett, Grant Thornton, advised that it had been a requirement to include publicity in the accounts in previous years under CIPFA guidance, but that this requirement had changed and it was no longer a requirement.

The Committee asked about the net loss indicated in off-street parking services, and it was agreed that officers would seek a response to this from the service. In response to a question regarding the Annual Governance Statement, the Director of Corporate Resources advised that, while this was not a fully comprehensive list, it covered all substantive and material matters as required.

Paul Dossett introduced the ISA 260 audit report, and advised that, against the context of the audit problems encountered in the previous year, the auditors were this year in a position to provide an unqualified audit opinion and Value for Money conclusion well within the statutory deadline. Key issues were set out in the executive summary, which recognised the considerable effort that had been made to improve the quality of the accounts and documentation since last year and noted that an area for continued improvement was property, plant and equipment and the documentation around these issues. It was noted that no additional fees had been incurred this year.

With regard to the unadjusted misstatements listed within the report, the Committee asked what steps were being taken to ensure that such matters could be avoided in future. Nick Walkley, Chief Executive, advised that as part of the restructure of Place and Sustainability, a new function had been established to deal with asset valuations more comprehensively than previously and that this should assist. Paul Dossett assured the Committee that his view was that an unqualified opinion would be given by the deadline, and that this would indicate that the Council had managed its resources effectively this year.

The Committee asked about the reduction in audit fee for this year. It was reported that some of this reduction was due to additional fees incurred last year not being incurred this year, but the reduction was largely as the result of the closure of the central Audit Commission function, which had led to an increase in competition.

With regard to the issues which required an answer outside the meeting, it was reported that these would be responded to within two weeks of the meeting – any cases where this would not be possible would be raised directly with the Chair.

RESOLVED

i)             That the Committee note the contents of the report and the oral updates provided at the meeting by Grant Thornton.

ii)            That the Committee approve the Statement of Accounts 2012/13, subject to any final changes required by the conclusion of the audit, being delegated to the Chief Financial Officer in consultation with the Chair.

iii)           That the Committee note the ISA 260 report of the auditors, Grant Thornton, and approve the management responses in the Grant Thornton action plan contained within the ISA260 report.

The Chief Executive placed on record his thanks to Council officers for their efforts which had led to such a significant improvement in the final accounts since the previous year and also to Grant Thornton for their work on the audit of the accounts. The Committee also expressed their thanks to Council officers and to Grant Thornton.