Agenda item

Statement of Accounts 2019/20 - Update No. 5

To consider the Executive Head of Finance’s Report No. FIN2120 (copy attached), which informs Members of audit progress for the Council’s Statement of Accounts for 2019/20 and provision of the audit opinion since the Committee’s meeting of 27th July 2021.

 

Minutes:

The Committee received the Executive Head of Finance’s Report No. FIN2120, which informed Members of audit progress for the Council’s Statement of Accounts for 2019/20 and the audit opinion since the Committee meeting on 27th July 2021.  The Committee was reminded that the deadline for issuing a final set of audit statement of accounts and audit opinion of 30th November 2020 had not been met. 

 

The Chairman welcomed to the meeting (via Microsoft Teams), Maria Grindley and Justine Thorpe from Ernst & Young (EY).

 

The Committee was advised that following consideration by the Committee of Audit Results Report at its meeting on 27th July 2021, officers from the Council and EY had held further meetings in July and August to assess progress and resolve audit queries in relation to the 2019/20 audit opinion.  It had become clear during August 2021 that there would be no prospect of the outstanding information being provided before the end of the month, preventing the audit reaching a conclusion.  It had therefore been agreed to work towards a revised timescale for the audit opinion and this was anticipated to be available during October 2021, subject to outstanding issues having been resolved.  The Chief Executive and the Committee Chairman had been made aware of the delay and the consequential impact this would have on the timescale for the 2020/21 audit work.   

 

The Committee was advised that the detailed Disclosure Note that addressed Going Concern issues had been provided to EY during August with a cashflow forecast covering the period required.  This set out the updated impact on the Council’s finances from Covid-19 and any Post Balance Sheet Event (PBSE) given the ongoing risk Covid-19 posed to the Council’s financial standing.

 

It was also confirmed that all of the outstanding EY queries had been sent over to EY at the end of the previous week and were currently being looked at by EY.  Maria Grindley confirmed that the company was pushing to get the audit opinion signed off as soon as possible and, if the answered queries had provided all the information required, every attempt would be made to finalise the audit opinion by the end of October 2021.

 

During discussion, Members raised questions concerning the reasons for the time taken to respond to information requested by EY and the impact on the 2020/21 audit.   In response, Members were advised that staff absence due to sickness and other priority work for the Property Team together with historic information not yet being available digitally had all contributed to the delays.  The Committee was also advised that, for the 2020/21 audit, there was a requirement to revalue all of the Council’s properties. To ensure that similar issues were not experienced for the 2020/21 audit, steps had been taken to mitigate this including additional staffing resource and the roll out of the new property system.

 

RESOLVED:  That

 

(i)        the Statement of Accounts Update Report No. FIN2120 be noted:

 

(ii)       the indicative timetable for approval of the 2019/20 Statement of Accounts and receiving the Audit Opinion be noted; and

 

(iii)       subject to all 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 approval formally and certify the audited Statement of Accounts 2019/20 and to receive the final External Auditor’s Report.

 

Supporting documents: