To receive the External Audit – Audit Results Report 2017/18.

The Committee considered the External Audit – Results Report 2017/18.

During the discussion of this item the following points were raised:

·         This year the deadline for the submission of the Financial Statements had shifted from 30 September to 31 July. 

·         Helen Thompson, Ernst & Young, thanked Officers within the Council and Ernst & Young for their support and hard work to help with the completion of the audit.

·         The materiality levels, which had been based on the draft Financial Statements, had been updated.

·         Helen Thompson updated the Committee on the status of items listed in the report as ‘Outstanding Matters:’

o   Property, plant and equipment and investment property – work was nearly complete on this area.  A call with the valuer would be taking place the next day;

o   Short Term Debtors and Creditors – work regarding debtors was complete and work regarding creditors was nearing completion;

o   Borrowing – this had been completed;

o   Officers Remuneration and Exit Packages – work on this area had been completed;

o   Annual Governance Statement – this was completed and no issues had been identified;

o   Cash Flow Statement – further work would be undertaken in this area in future;

o   Earmarked Reserves – the final evidence had recently been received.  No issues were anticipated;

o   Group Accounts – these were completed

·         There was little work which remained outstanding.

·         It was likely that the audit opinion would be signed off on Tuesday 31 July.

·         Helen Thompson indicated that one adjustment had been identified regarding creditors.  An adjustment had since been made.  Jonathan Ross, Senior Specialist – Finance explained that the best estimate available had been included at the time of publication.  Once it had been worked through it had been found that it had been on the capital adjustment account and not creditors.  Helen Thompson confirmed that Ernst & Young were satisfied with the adjustment made.

·         There was one unadjusted audit difference arising from the audit.  This was in relation to IAS 19 Asset values.  This was for £6.726m which was just below the materiality level.  Councillor Sargeant commented that he felt that it was not necessary to request a revised actuarial valuation and that the estimate received was legitimate.

·         Two other adjustments had been made which were below the reporting threshold.

·         It was anticipated that an unqualified value for money conclusion would be issued.  It was likely that the financial challenges facing local government and councils would be further considered in the audit for the next financial year.

·         Subject to completion it was anticipated that an unqualified opinion on the Financial Statements would be issued.  Following this, the External Audit – Audit Results Report 2017/18 would be updated and circulated to the Committee members.

·         Councillor Chopping asked what penalties if any, Councils that missed the 31 July deadline for the submission of the financial statements would face.  Helen Thompson indicated that there was no legal or financial penalties and it was more around reputational risk.  The missing of the deadline would also be highlighted in a report produced by the Public Sector Audit Appointments.

RESOLVED:  That the External Audit – Audit Results Report 2017/18 be noted.