Agenda and minutes

Members and officers will disclose any pecuniary and any other significant interests they may have in relation to any matters on the agenda.

None.

To confirm as a correct record the minutes of the last meeting of the Audit Committee held on 19 June 2018.

Agreed that the minutes of the Audit Committee meeting held on 19 June 2018 be confirmed as a correct record.

Report of the Head of Finance (Section 151 officer).

The Head of Finance (Section 151 Officer) submitted a report on the Statement of Accounts following the completion of the audit and the final capital and revenue position for the financial year 2017/18.

The Head of Finance introduced the report and explained the format of the Statement of Accounts. She referred, in particular, to the introductory, contextual and background information in the narrative report and to the various detailed financial statements set out in Appendices 1 to 4b. She reminded Members that they had received training on the format and content of these documents when the unaudited accounts had been submitted to the Audit Committee on 19 June.

As in previous years, in order to assist with the interpretation of the report and to demonstrate robust Member scrutiny prior to approval, the Head of Finance submitted a set of Questions and Answers (attached as an annex to these minutes), which highlighted a number of issues arising from the accounts. The Head of Finance and the Deputy Head of Finance drew attention in particular to the following questions and answers:

-       Q1(non-financial information

-       Q2 (revenue variances)

-       Q3 (housing benefit variances)

-       Q5 (subsidy position at Marine hall and Thornton Little Theatre)

-       Q9 (Hillhouse Enterprise Zone)

-       Q10 (Audit, Risk and Insurance activity)

-       Q11 (council tax summons fee income)

-       Q15 (employee costs)

-       Q21 (additional interest received)

-       Q22 (revenue slippage)

-       Q23 (three highest areas of revenue slippage)

-       Q26 (main items of capital expenditure)

-       Q27 (spending on cultural and leisure facilities)

-       Q31 (comprehensive income and expenditure statement)

-       Q32 (surplus on the provision of services)

-       Q33 (property, plant and equipment)

-       Q36 (earmarked reserves – vehicle replacement and street cleansing maintenance)

-       Q38 (rental income from investment properties)

-       Q39 (trading operations)

-       Q42 (collection fund)

-       Q43 (heritage assets)

-       Q44 (recommendation from previous audit)

Members of the Committee raised questions and made comments, as the Statement of Accounts was considered, supported by the questions and answers document, including references to:

-       the level of subsidy for the Marine Hall;

-       housing benefit overpayments;

-       the viability of the Spa on the Breck facility at the Poulton Leisure Centre;

-       options to be submitted by the YMCA for the ongoing provision of services under the leisure management contract with the aim of driving down the subsidy;

-       income from investment properties;

-       the effectiveness of advertising and marketing of the council’s trading operations;

-       measurement of the financial “performance” of the council’s cemetery services, including the possible need for a clearer breakdown in future years of both direct fixed costs and variable costs dependent on the number of burials and levels of other activities.

The Head of Finance thanked the Financial Services Team and officers across the council for their enthusiasm, hard work and commitment which had enabled a set of full, accurate and fair accounts to be produced within the new tighter statutory deadlines.

Agreed:

1.    That the Accounting  ...  view the full minutes text for item 13.

Letter signed by the Chairman of the Audit Committee and the Head of Finance (Section 151 officer).

The Head of Finance submitted the Management Representation Letter for 2017/18, the content of which had been determined by KPMG LLP.

Amanda Latham, on behalf of the Council’s external auditors KPMG LLP, said that the wording of the letter was “fairly standard” and that it had not been necessary to require that any concerns to be referred to in the letter.

Agreed that the contents of the Management Representation Letter for 2017/18, be noted and that the Chairman of the Audit Committee and the Head of Finance be authorised to sign it and send it to KPMG LLP.

Report of the Head of Finance (Section 151 officer) – Report to follow.

Amanda Latham (Director KPMG LLP) submitted the External Audit (ISA 260  Report) for Wyre Borough Council for 2017/18. She referred to the work that had been carried out to discharge their statutory audit responsibilities and provided Committee Members with an overview of the report, summarising the headline messages for the Authority and key findings, as follows:

-       That, subject to a few minor outstanding queries being resolved, she anticipated that an unqualified audit opinion on the Authority’s 2017/18 financial statements would be issued by the deadline of 31 July 2018;

-       That no issues or material risks had been identified arising the council’s valuation of property plant and equipment or pensions liabilities (the two areas of potential significant risk which had been identified in the external audit plan);

-       That their 2017/18 value for money conclusion was that the Council had made proper arrangements to ensure it took properly informed decisions and deployed resources to achieve planned and sustainable outcomes for taxpayers and local people and she anticipated that that she anticipated that an unqualified value for money opinion would be issued;

-       That one low priority area for improvement had been identified, relating to a more frequent reconciliation of rateable value information provided by the Valuation Office with information in the council’s Northgate business rates system.

Amanda Latham commended the very good work of the council’s Finance Team and thanked officers for dealing promptly and efficiently with all audit queries.

The Chairman (Cllr McKay) thanked Amanda Latham and her team for their work as the Council’s external auditors. She introduced Paul Hewitson, from Deloittes, who would now be taking over as the Council’s external auditors and would be attending the next meeting of the committee in that capacity.

Agreed that the External Auditors Report to those charged with Governance, (referred to as the ISA 260 report) for 2017/18, be noted.

The next meeting of the Committee is scheduled for Tuesday 13 November 2018, in the Council Chamber at the Civic Centre.

Agreed that the next meeting of the Committee be held at 6pm on Tuesday 13 November 2018.