Agenda item

Statement of Accounts

7.1

Clair Sharratt (Finance Manager, Strategic Finance) introduced a report of the Director of Finance containing the Statement of Accounts and the External Auditor’s Annual Governance Report (AGR) and providing details of matters arising from the external audit of the 2011/12 Accounts. She explained that Appendix 2 of the AGR contained the corrected errors since the summary of the Accounts was considered by this Committee at its meeting on 1 August 2012. The majority of the corrections were presentational and did not affect the bottom line budget position. The uncorrected errors were detailed in Appendix 3.

Annual Governance Report

7.2

The External Auditor introduced his Annual Governance Report that summarised the findings from the 2011/12 audit of the accounts and which was substantially complete. The report included the messages arising from his audit of the Council’s Financial Statements and the results of the work he had undertaken to assess the Council’s arrangements to secure value for money in the use of resources. He proposed to issue an unqualified value for money conclusion which confirmed the Authority had satisfactory corporate arrangements in place for securing economy, efficiency and effectiveness in its use of resources.

7.3

He reported on the correspondence he had received from eight local government electors and that this may give rise to objections to the Council’s accounts. In the interim, he was considering whether any of the matters raised might have an impact on his audit opinion and or conclusion.

7.4

The External Auditor also outlined the key audit risks and findings relating to Digital Region Ltd, Trading Standards, Housing Revenue Account Reform, implementation of the new capital accounting system, the valuation of property, plant and equipment, heritage assets and pensions accounting.

7.5

David Phillips (Senior Audit Manager, Audit Commission) gave details of the significant weakness in internal control, significant findings from the audit and other matters that are significant to the oversight of the Authority’s financial reporting process, the Whole of Government Accounts, Value for Money, audit fees, the draft independent auditor’s report and the corrected errors.

7.6

Officers responded to questions on the Accounts and the AGR from members of the Committee relating to Trading Standards, Invest to Save, reserves, the increase in short term debt and Schools Traded Services.

7.7

Resolved that:

(a)

the Committee accepts the Annual Governance Report 2011/12;

(b)

the Statement of Accounts for 2011/12 be approved;

(c)

the Chair of the Committee be requested to sign (i) the Letter of Management Representations at Annex B to Accounts to conclude the audit and (ii) the Statement of Accounts;

(d)

the Director of Finance be requested to submit a report to a meeting of this Committee on the underlying performance in relation to the Traded Services;

(e)

the thanks of this Committee are conveyed to (i) the Director of Finance and his Team for producing the Statement of Accounts and (ii) the External Auditor and his staff for producing the Annual Governance Report; and

(f)

the Committee notes and concurs with the congratulations from the External Auditor to Clair Sharratt (Finance Manager, Strategic Finance) for her work on the Accounts, particularly in respect of the implementation of the new Capital Accounting System.