Meeting documents

Chairman: Councillor Glover
Venue: Civic Centre, Scunthorpe (Function Room 2)
Time: 11 am
E-Mail Address: matthew.nundy@northlincs.gov.uk

AGENDA

1. Substitutions (if any)
2. Declarations of Disclosable Pecuniary Interests and Personal or Personal and Prejudicial Interests (if any).
3. Audit of Accounts 2017-18 - Matters Arising From The Audit
4. Any other items which the chairman decides are urgent by reasons of special circumstances which must be specified.

Note: Reports are by the Director: Governance and Partnerships unless otherwise stated.

MINUTES

PRESENT: – Councillor Glover in the chair

Councillors Ali, Clark, Collinson, O'Sullivan and K Vickers.

The committeemet at the Civic Centre, Scunthorpe.

518 DECLARATIONS OF DISCLOSABLE PECUNIARY, PERSONAL OR PERSONAL AND PREJUDICIAL INTERESTS – The following member declared a personal interest –

519(8) AUDIT OF ACCOUNTS 2017-18 - MATTERS ARISING FROM THE AUDIT - The Director: Governance and Partnerships submitted a report informing the committee that the Accounts and Audit Regulations required the council to publish a statement of accounts each financial year. These accounts were the formal statement of the council’s financial performance for the year and its financial position at the end of that period. A financial year ran from April to March.

The Director confirmed that she approved the council's unaudited accounts on 31 May 2018. This met the statutory requirement that they be approved by 31 May 2018.

The Accounts had been produced under International Financial Reporting Standards (IFRS).

The accounts had since been audited and the external auditors had set out their findings in a report. Members were required to consider the proposed amendments and approve the changes to the accounts that result from it. It was a statutory requirement that this process concluded by 31 July 2018.

The International Standard on Auditing 260 - 'The Auditor’s Communication with Those Charged with Governance (ISA 260)' required auditors to report certain matters arising from the audit of the council's financial statements before giving an opinion on them.

The report from the council's Auditors (KPMG) was attached to the report. It set out the matters arising from the audit of the council's 2017-2018 accounts. A copy of the amended accounts was attached as an appendix.

The main findings of the report were:

• An unqualified opinion on the council's accounts and arrangements for achieving Value for Money would be issued shortly.
• That the closedown process had met the necessary statutory deadlines.
• An error was identified on recording changes in the Fixed Asset Register, which had led to an adjustment required to the Balance Sheet - Unusable Reserves. Although the adjustment had been classified as material, the error had no impact on the general fund balance. The arrangements for checking any significant changes to the Fixed Asset Register needed to be reviewed.
• Some other minor adjustments to the accounts were required.

International Standard on Auditing 580 'Management Representations' required auditors to obtain written confirmations of appropriate representations from management before the audit report was issued. A proposed letter of representation was attached to the report, which the Committee was asked to approve and authorise the Chairman of the Audit Committee and the Director: Governance and Partnerships to sign.

Additionally, IAS 570 required a specific statement on the applicability of the 'Going Concern' concept to the council. The accounts had been prepared on a going concern basis. A review of the applicability of the concept to the council was included at Appendix 1.

The Chairman invited representatives of KPMG, the council's external auditors, to comment on the ISA 260 report. KPMG guided members through the ISA 260 report, paying particular attention to the outstanding work to be completed. To conclude, KPMG publically thanked council officers from the Accountancy Team for their co-operation and partnership approach to the closedown of the council's accounts.

Members commented on particular aspects of the council's Statement of Accounts 2017-2018 and ISA 260 Report to which the Director: Governance and Partnerships and representatives of KPMG responded to.

Resolved - (a) That the Statement of Accounts for 2017-18, prepared on a going concern basis and as amended in line with the auditor's findings, be received and approved, subject to confirmation from the council’s external auditors that all outstanding work had been completed; (b) that the contents of the ISA 260 Report be noted; (c) that the signing of the Letter of Representation by the Chairman of the Audit Committee and the Director: Governance and Partnerships be endorsed, and (d) that all council officers who had contributed towards the earlier closedown of the council accounts be congratulated for their commitment and professionalism towards achieving the 31 July 2018 statutory deadline. *

*The Director: Governance and Partnerships received confirmation on 30 July 2018 that KPMG had now completed its work on the Depreciation Replacement Cost assets and, as a result of the findings, had amended the ISA 260 report.

Therefore, following receipt of the amended ISA 260 report, the council's external auditors had now given the council's accounts a clean opinion, prior to the statutory deadline of 31 July 2018.

520 KPMG - EXTERNAL AUDITORS - The Chairman informed the meeting that now that KPMG had concluded the work on the council's accounts for 2017-18, their contract as the council's external auditors had ended.

The Chairman, on behalf of the committee, formally thanked representatives of KPMG for their professional relationship with council officers and elected members, as well as their advice and problem resolution ability and wished them all the best with their future endeavours.