Decision details

The Committee noted that the Report had not been notified for inclusion within the statutory deadline.  The Chairman agreed to accept the item onto the agenda as a matter requiring urgent consideration to enable the consideration of the Report in order to approve the letter of representation in order that the Annual Financial Report could be published within the statutory deadline.

The Corporate Director: Resources informed the meeting of a consultation exercise that was taking place in response to a CIPFA initiative to highlight where councils might be experiencing financial stress.  Under the initiative CIPFA would consider the Council against six indicators.  He stated that the initiative may result in an overly simplistic analysis of the Council’s financial resilience and there was a risk of unintended consequences through some of the proposed measures. The idea of further Value for Money assessment was supported.  Following discussion, the Committee supported the Corporate Director: Resources to make representations as outlined above.

Mr Mathers from Ernst and Young, the Council’s external auditors, presented the preliminary audit conclusions in relation to the audit for 2017/18.  He stated that all audit work was complete and that EY would be giving an unqualified audit opinion on the financial statements and he thanked the Council’s Finance Team for their work.

Mr Mathers answered questions from the Committee on the depreciation charge for council dwellings; how matters of concern were monitored and the financial resilience of the Council in funding numerous major projects.  Further questions were raised regarding contract management (including the Leisure Centre) and the capacity of Ernst and Young to meet publishing deadlines when it was the client for a number of councils.

Following debate, it was agreed that consideration be given to bringing forward the July meeting of the Audit Committee in future years by a few days to give more time for the auditors to sign their report and for the Annual Financial Report to be published.

RESOLVED:

That the Letter of Representation in the Auditor’s Report (appendix 1) be approved.