Issue - meetings

Statement of Accounts 2018/19 - Update

Meeting: 28/07/2020 - Corporate Governance, Audit and Standards Committee (Item 7)

7 Audit Results Report and Statement of Accounts 2018/19 - Update 5 pdf icon PDF 108 KB

To consider the Executive Head of Finance’s Report No. FIN2019 (copy to follow) which provides an update on the 2018/19 Statement of Accounts and sets out the process and timetable for approval.

Minutes:

The Committee received the Executive Head of Finance’s Report No. FIN2019 which provided Members with an update on audit progress for the Council’s Statement of Accounts for 2018/19 and on the provision of audit opinion since the last meeting on 28th May, 2020.

 

The Executive Head of Finance reminded members that at its meeting in May 2020, they were advised that Covid-19 had given rise to a Post Balance Sheet Event (PBSE) and posed an ongoing risk to the Council’s financial standing.  It had been noted, in order to complete the Accounts and Audit Opinion process, the Statement of Accounts needed to include a detailed Disclosure Note that addressed the impact on the Council’s finances from Covid-19 and considered the Going Concern basis.

 

The Executive Head of Finance advised that whilst a draft Disclosure Note had been prepared and shared with Ernst & Young (EY) in early July, 2020, it required amendment to include the latest financial information, based on the Q1 2020/21 budget monitoring position, and a projection of the Council’s cashflow for the next twelve months and reserves over the current Medium Term Financial Strategy (MTFS) period.  Once these amendments had been made, the Disclosure Note would be subject to EY’s audit and assurances processes.

 

In order to agree the accounts and audit opinion before the next scheduled meeting of the Committee on 28th September, 2020, it was proposed that, in order to finalise the Statement of Accounts process and receive the external Auditor’s Report, authority was delegated to the Chairman and to the Executive Head of Finance to approve formally and certify the audited Statement of Accounts and receive the External Auditor’s Report from EY.  Members would be provided with a copy of the final draft documents in advance to give them a limited opportunity to ask questions and seek clarification on matters identified in the report.

 

The Committee noted the new deadlines for the completion and publication of the 2019/20 Statement of Accounts, as set out in the Accounts and Audit (Coronavirus) (Amendment) Regulations 2020 which came into force on 30th April, 2020.

 

RESOLVED: That, subject to Members of the Committee being provided with a copy of the audited Statement of Accounts and the Audit Results Report in advance, the Chairman of the Committee and the Executive Head of Finance be authorised to approve formally and certify the audited Statement of Accounts 2018/19 and to receive the External Auditor’s Report.


Meeting: 28/05/2020 - Corporate Governance, Audit and Standards Committee (Item 2)

2 Statement of Accounts 2018/19 - Update pdf icon PDF 110 KB

To consider the Executive Head of Finance’s Report No. FIN2016 (copy attached) on audit progress for the Council’s Statement of Accounts 2018/19 since the last Committee meeting on 23rd March, 2020.

Minutes:

The Committee received the Executive Head of Finance’s Report No. FIN2016 which provided Members with an update on audit progress for the Council’s Statement of Accounts for 2018/19 and on the provision of audit opinion since the last meeting on 23rd March, 2020, and included a timetable for the completion and publication of the 2019/20 Statement of Accounts.

 

The Executive Head of Finance reminded members that at its meeting in March 2020, they were advised that the external auditors had largely concluded their audit work and had issued a draft Audit Results Report, and delegated approval had been given to authorise the Chairman of the Committee and the Executive Head of Finance to approve formally and certify the audited Statement of Accounts 2018/19 and to receive the External Auditor’s Report.

 

Subsequent to this meeting, the Committee was advised that Ernst & Young (EY), in response to the Covid-19 pandemic, placed a temporary moratorium on the issuing of audit opinions on 24th March, 2020.  Whilst this moratorium has been lifted, EY now had to consider whether Covid-19 gave rise to a Post Balance Sheet Event (PBSE) and posed an ongoing risk.  Officers were in discussion with EY and were providing information concerning the impact of Covid-19 on the Council’s finances.  The Committee noted that a statement from the Executive Head of Finance concerning the financial standing of the Council was currently being reviewed by EY and that the final Statement of Accounts and Audit Opinion were now expected in early June 2020 and would be considered by the Committee at its next meeting on 28th July, 2020.  The delegated authority given to the Chairman and Executive Head of Finance was therefore no longer needed.

 

In respect of the 2019/20 Statement of Accounts, in response to Covid-19, the Committee noted that the deadlines for the completion and publication of these accounts had been changed, as set out in the Accounts and Audit (Coronavirus)(Amendment) Regulations 2020 which came into force on 30th April, 2020, and detailed in the Report.

 

RESOLVED: That the approval given to the Chairman of the Committee and the Executive Head of Finance to approve formally and certify the audited Statement of Accounts 2018/19 and to receive the External Auditor’s Report be removed.