Issue - meetings

The Board considered a report of the Operational Director, Finance, which sought approval for the Council’s 2020/21 Statement of Accounts (the latest version of which was enclosed with the Agenda), and the report of the Audit Findings of the External Auditor (Grant Thornton) on the 2020/21 financial statements. The report also sought approval of the Council’s Letter of Representation.

It was reported that the Statement of Accounts set out the Council’s financial performance for the year in terms of revenue and capital spending and also presented the year-end financial position as reflected in the balance sheet. The key elements were detailed in the report.

The External Auditor presented the Audit Findings report which summarised the findings from 2020/21 external audit. Section 2 of the Audit Finding report presented the finding of the External Auditor in respect of matters and risks identified at the planning stage of the audit and additional and significant matters that arose during the course of their work.

It was explained that the audit work is substantially complete, except for undertaking additional work relating to infrastructure assets which has recently been required following a sector-wide issue relating to component accounting. It is not anticipated that any matters will arise from this additional work, however, it must be undertaken in order for the External Auditor to provide their Audit Opinion.

In addition the Council was required to provide the External Auditor with a Letter of Representation relating the financial statements, as shown in Appendix 1. The letter was required to be signed by the Chair of the Board on behalf of the Council.

It was noted that on 1 April 2020 the National Audit Office had introduced a new Code of Audit Practice which came into effect from audit year 2020/21. The Code introduced a revised approach to the audit of Value for Money (VFM). Work on VFM arrangements was ongoing but the External Auditor had not identified any significant weakness during planned work to date.

RESOLVED: That

1.    the draft Letter of Representation in Appendix 1 be approved and any subsequent additions or amendments be approved by the Operational Director - Finance, in liaison with the Chair of the Board;

2.    the External Auditor’s draft 2020/21 Audit Findings Report in Appendix 2 and any subsequent additions or amendments be approved by Operational Director - Finance, in liaison with the Chair of the Board; and

3.    the Council’s draft 2020/21 Statement of Accounts in Appendix 3 be approved and any subsequent additions or amendments be approved by the Operational Director - Finance, in liaison with the Chair of the Board.