Agenda item

7.1

Stephen Clark, Ernst and Young, submitted a report from the external auditors summarising the key findings in relation to Ernst and Young’s 2018-19 external audit at Sheffield City Council.  As it was the first year that Ernst and Young had audited the Council, it had been a large audit that had gone smoothly and he thanked the Council’s officers for their help and support.

7.2

Hayley Clark, Ernst and Young, reported on a number of significant risks including mis-statements due to fraud or error, inappropriate capitalisation of expenditure and completeness of liabilities and valuation provisions, valuation of investment properties and property plant and equipment and accounting for the valuation of the Local Government Pension Scheme. However, the external auditors were satisfied with the City Council’s responses to these risks and therefore Ernst and Young had concluded that they would be able to sign an unqualified financial statements opinion before the deadline of 31^st July 2019. Ernst and Young also anticipated issuing an unqualified value for money opinion.

7.3

The report also included the Management Representation Letter.

7.4

Councillor Simon Clement-Jones expressed concerns regarding the level of the Council’s reserves and the Council’s reserves strategy and appropriateness for the next four years.  Stephen Clark explained that the Council had good Value for Money arrangements and a good Medium Term Financial Strategy, however there were significant pressures on reserves, particularly in relation to Adult and Children’s Services.  The challenge was to manage the demand but the arrangements that the Council had put in place were appropriate.  The Head of Strategic Finance stated that the Council had taken tough decisions to maintain services and that there was still uncertainty around the level of funding to be expected from Government in future.

7.5

RESOLVED: That the Committee notes the report, now submitted.