Agenda item

Statement of Accounts and Audit Results Report 2015/16

To consider the Head of Financial Services’ Report No. FIN1620 (copy attached), which seeks approval for the Council’s Statement of Accounts and summarises the findings of the Council’s auditors, Ernst & Young, in carrying out their audit work in relation to the 2015/16 financial year.  A representative from Ernst & Young will be in attendance to present their Audit Results Report 2015/16 (copy attached as Appendix).

Minutes:

The Committee considered the Head of Financial Services’ Report No. FIN1620 which sought approval for the Council’s Statement of Accounts for 2015/16 and set out the external auditor’s Audit Results Report. 

 

The Committee was advised that the Statement of Accounts for 2015/16 had been prepared in line with CIPFA’s ‘Code of Practice on Local Authority Accounting’ for 2015/16, under International Financial Reporting Standards and in accordance with the Accounts and Audit (England) Regulations, 2015.  The Council’s Annual Governance Statement, which had been approved by the Committee on 27th June 2016, was required to be published alongside the Statement of Accounts by 30th September, 2016 and was included in Appendix A to the Report. 

 

On behalf of the Committee, the Chairman welcomed Mr. Andrew Brittain and Mr. Adrian Balmer who were attending to present the findings of the Council’s Auditors, Ernst & Young, in carrying out audit work in relation to the 2015/16 financial year.  The audit was now complete and an unqualified audit opinion was issued. The external auditors also concluded that the Council had put in place proper arrangements to secure value for money in its use of resources and the audit certificate was issued at the meeting alongside the audit opinion.

 

Mr. Brittain advised that there was currently one unadjusted audit difference, which was an extrapolated error.  Details of this were set out in Appendix B to the Audit Results Report.   The error was not considered to be material to the audit opinion.   The auditors sought the Committee’s approval of management’s rationale as to why the correction had not been made.  This was included in the draft Letter of Representation from the Council, which had been circulated to the Committee for approval.

 

A limited number of casting and consistency errors had been identified.  These had been corrected during the course of the audit work and details were provided in Appendix A to the Audit Results Report.  It was noted that these amendments did not have an impact on useable reserves. 

 

Mr. Balmer advised the Committee on the responsibilities of the Council in preparing and publishing its Statement of Accounts and Annual Governance Statement as well as putting in place proper arrangements to secure economy, efficiency and effectiveness in its use of resources.    Mr. Balmer also spoke on the purpose and scope of an audit, including audit risks identified during the planning phase of the audit, and which had been previously reported to the Committee in the Audit Plan.   The Audit Results Report also set out: audit procedures performed and the assurance gained and issues arising from this work during the audit; other matters which were significant to the Council in overseeing its financial reporting process; control themes and observations; a request for written representations; Whole of Government Accounts return; and, a value for money conclusion.

 

Mr. Brittain thanked the Council for its help and support in allowing Ernst & Young to complete the audit.     

 

RESOLVED: That

 

(i)        the Auditor’s Audit Results Report, as appended to the Head of Financial Services’ Report No. FIN1620, be noted;

 

(ii)       the financial statements for 2015/16 be approved;

 

(iii)      the letter of representation, as circulated at the meeting, be approved; and

 

(iv)      the Chairman be authorised to sign page 13 of the Statement of Accounts 2015/16, attached as Appendix A to the Report, to certify the Committee’s approval.

Supporting documents: