Agenda item

To consider the Statement of Accounts.

The Committee considered the Statement of Accounts.

During the discussion of this item, the following points were made:

·         The Committee had first seen the accounts at its July meeting.  They had since been updated following adjustments to the pension fund information.

·         The Head of Finance took the Committee through the report recommendations.  Members were informed that while the accounts were complete from a Council position, there remained some audit issues around the pension fund information.  Helen Thompson of EY clarified the position.

·         Members were assured that the accounts had been compiled correctly in accordance with accounting guidance and standards (CIPFA Code of Practice and IFRS).

·         With regards to Note 16 Related Parties, Members queried the reference to £100.  It was confirmed that this figure was correct.  The prior year figure was also confirmed as accurate.

·         Councillor Gee suggested that reference to ‘Property Investment Fund – Stapletons Peterborough’ should be included in Note 25 Other Non-Current Assets instead of Note 24 Property, Plant and Equipment.  The Head of Finance explained that capital commitments for property, plant and equipment and investments had been aggregated into Note 24 split but agreed with Councillor Gee that the commitment for Stapletons Peterborough would be moved to Note 25.

·         With regards to Note 25, Councillor Gee asked about ‘Rental Income from Investment Property’ and disclosing interest incurred.  The Head of Finance indicated that investment income and debt financing costs information were covered elsewhere.  The Council did disclose the full cost of properties, both gross and net, on the Council’s website.  Councillor Gee suggested that this information be included in the accounts in future.  The Head of Finance explained that the disclosure had been carried out in accordance with the relevant code.  If the information were also included within the accounts, it could increase the audit fee, as any additional information in the accounts would need to be audited.

·         The Committee discussed the readability of the accounts.

·         In response to a Member question, it was clarified that PFI assets were referred to within Note 24.

·         Councillor Gee asked what was meant by ‘Simplified Approach – Customers’ under the section ‘Amounts arising from Expected Credit Losses’.  The Chief Accountant commented that it was likely debtors.

·         Helen Thompson clarified the reporting arrangements around investments in companies.  It was clarified that the reference within the statement executive summary of the 2018/19 Audit results report to the Council not currently producing Group accounts, was incorrect and would be amended.

·         Members agreed that should there be any significant changes to the accounts prior to their signing, they should be brought to the attention of the Committee.

RESOLVED:  That the Audit Committee:

1)         approve the delegation of signing on behalf of Audit Committee the letter of representation from WBC to their Auditors, Ernst & Young (EY) to the Vice Chairman outside of the committee meeting upon receiving assurance from EY that the statement of accounts represent a true and fair view of the Council’s finances and are free from material error, subject to there being no significant changes prior to signing. 

2)         Approve the delegation of signing on behalf of Audit Committee the statement of responsibilities to the Vice Chairman outside the committee meeting upon receiving assurance from the Council’s Auditors (Ernst & Young) that the statement of accounts represent a true and fair view of the Council’s finances and are free from material error, subject to there being no significant changes prior to signing. 

3)         Note the letter of representation and statement of responsibilities will also be signed by the Deputy Chief Executive & S151 Officer.