Agenda and minutes
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Chair's Announcement Minutes: At the start of the meeting, the Chair of the Committee thanked everyone for attending and welcomed any members of the press or public who were observing the proceedings.
The Chair of the Committee then introduced the meeting and provided all present with an overview of how this remote meeting would work and some housekeeping.
A roll call was then taken of all Members present, to confirm that they could hear and be heard; and that they could see and be seen.
The Chair of the Committee then welcomed Michael Green and Naomi Povey, who were in attendance representing the Authority’s External Auditors – Grant Thornton.
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Preliminary items The Authority is requested to consider the identification of:
a) declarations of interest by individual Members in relation to any item of business on the Agenda
b) any additional items of business which the Chair has determined should be considered as matters of urgency; and
c) items of business which may require the exclusion of the press and public during consideration thereof because of the possibility of the disclosure of exempt information.
Minutes: Members considered the identification of any declarations of interest, matters of urgency or items that would require the exclusion of the press and public due to the disclosure of exempt information.
Resolved that:
a) no declarations of interest were made by individual Members in relation to any item of business on the Agenda
b) no additional items of business were determined by the Chair to be considered as matters of urgency; and
c) no items of business required the exclusion of the press and public during consideration thereof because of the possibility of the disclosure of exempt information.
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Minutes of previous meeting PDF 66 KB The Minutes of the previous meeting, held on 24th September 2020, are submitted for approval as a correct record and for signature by the Chair.
Minutes: The Minutes of the previous meeting of the Audit Committee, held on 24th September 2020, were approved as a correct record and for signature by the Chair. |
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Grant Thornton Audit Finding 2019-20 PDF 609 KB To consider the attached report from the Authority’s External Auditors – Grant Thornton, concerning the Audit Finding 2019-20. Minutes: Michael Green, representing the Authority’s External Auditor – Grant Thornton, provided Members with an overview of their Audit Finding Report for 2019-20.
He placed his thanks on record to the Director of Finance and his team for their patience and assistance, through what has been a long and difficult audit process, against a backdrop of Covid-19 and new ways of working remotely.
Some of the most important aspects of the findings and work undertaken, were highlighted to Members.
Members were advised that the audit work is essentially complete; and that Grant Thornton anticipate issuing an unqualified opinion.
Members were informed that the report now includes an “Emphasis of Matter” paragraph, which draws attention to the material uncertainty relating to the valuation of Authority land and buildings, that the valuer has included within their report, and which is also disclosed within the Financial Statements. They were advised that this paragraph also refers to similar material uncertainty, reflective of the valuation of property assets in the accounts, in relation to the Local Government Pension Fund for Merseyside, a share of which will be attributable to the Authority and therefore disclosed within the Financial Statements and the Audit opinion. It was emphasised to Members that the “Emphasis of Matter”, is not a qualification of audit opinion, it simply draws attention to what audit consider to be a significant disclosure, to help a reader to understand the financial statement. They were informed that the Authority is not unique in having that “Emphasis of Matter” paragraph including in the report this year, with it featuring in all Local Authority Bodies reports, due to the impact that Covid-19 has had on the valuation of property assets.
It was confirmed to Members that the Financial Statements had been prepared to a good standard, with only two mis-statements being identified. Members were informed that one of those, was beyond the control of the Authority, due to a post-balance sheet event, relating to the McCloud legal case. They were advised that the impact of the adjustments identified, is a £5.9m adjustment to the comprehensive income and expenditure statements. However, it was emphasised that this does not impact on the financial performance of the Authority for the year, or on the usable reserves of the Authority.
Members attention was drawn to the work delivered around the Authority’s Value for Money arrangements. They were advised that as previously reported in the Audit Plan, a significant risk has been identified around financial sustainability. However, based on the procedures in response to that risk, the Auditors have concluded that the Authority has appropriate arrangements in place to address that risk; and the Authority has responded very well in relation to the impact of Covid-19 on finances. Therefore, the Auditors do not have an issues or concerns; and will be issuing an unqualified opinion on the Authority’s Value for Money arrangements.
Members were informed that Grant Thornton have not had to exercise any of their statutory powers or duties during the year; and will ... view the full minutes text for item 3. |
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statement of accounts 2019/20 - approval of audited statements PDF 116 KB To consider Report CFO/062/20 of the Director of Finance, concerning the audited 2019/20 Statement of Accounts for approval and request that they be authorised for issue. Additional documents:
Minutes: Members considered Report CFO/062/20 of the Director of Finance, concerning the audited 2019/20 Statement of Accounts for approval and request that they be authorised for issue.
Members were advised that the Authority is required to prepare a set of financial statements in a format that is set out under the relevant Accounting Codes and Standards. They were informed that the Statement of Accounts, attached to the report at Appendix A, presents the required Authority core financial statements for 2019/20, having regard to the various codes and regulations.
It was highlighted to Members that the Statement of Accounts must be approved by the Authority, before 30th November 2020.
Members were informed that the Authority’s External Auditors – Grant Thornton, have issued an unqualified opinion on the Statement of Accounts, which confirms that the Statement represents a true and fair view of the financial position of the Authority and its income and expenditure for 2019/20; and that the Statement has been prepared in accordance with the required code and regulations.
Paragraphs 12 to 15 within the report, were highlighted to Members, which provide some background to the four core financial statements; and summarise the 2019/20 movements and explains any significant changes to the previous year’s figures.
Members were informed that paragraph 14 of the report, outlines the Balance Sheet movements between 2018/19 and 2019/20; and in particular, the movements on the Authority’s assets and liabilities.
It was highlighted to Members that the Code and Regulations, require a number of notional accounting entries and adjustments, that are significant in value, to be included within the Statement of Accounts, such as a depreciation charge. Members were advised that these are notional in nature, therefore they do not form part of the costs that must be funded by the Authority’s approved general fund budget.
Members attention was drawn to the table on page 45 of the report, which outlines how the 2019/20 neutral general fund outturn position, as reported to the Policy & Resources Committee on 30th July 2020, becomes a £4.535m adverse variance under the Statement of Accounts code and regulations. Members were assured that in relation to the reported outturn position for the revenue, capital and reserve budgets, there has been no change to that reported to the Policy & Resources Committee previously.
Members were advised that they are requested to approve the Letter of Representation, attached as Appendix B to the report, which simply states that the Treasurer and the Chair of the Committee, are not aware of anything that would alter the information contained within the Statement of Accounts.
Members were advised that in relation to the recommendations contained within the report, (a) should now read “the audited Statement of Accounts 2019/20…” rather than “the unaudited Statement of Accounts…” as this work is now complete.
Members Resolved that:
a) the audited Statement of Accounts 2019/20 attached as Appendix A to this report, be approved and authorised for issue, and
b) the letter of representation in relation to the 2019/20 accounts, attached ... view the full minutes text for item 4. |