Agenda item

The Board was asked to consider and note the Grant Thornton Annual Audit Letter 2013/2014.

Mr. P. Jones introduced the report and in doing so informed Members that the Annual Audit Letter 2013/2014 summarised the key findings arising from the work they had carried out at the Council for the year ended 31st March 2014.

An unqualified opinion on the accounts had been issued and an unqualified Value for Money (VFM) conclusion given.  Appendix A to the report summarised the significant recommendations identified during the 2013/2014 audit. 

The Executive Director Finance and Resources responded to Councillor S. J. Baxter with regard to the slowness of financial reporting to Council.  Members were informed that a new accounting system would be installed and in use by January / February 2015.  The new accounting system would allow managers on line access to their budgets and therefore enable the accounting team to close the accounts earlier than in previous years.  Forth tier managers would receive a presentation to help them develop more robust forecasting and monitoring of budgets.

Mr. P. Jones responded to Councillor P. M. McDonald in respect of the £900 audit fee, as detailed on page 38 in the report.  Mr. P. Jones informed the Board that, as detailed in their report, the Audit Commission set the scale fee on which the Council’s audit fee was based; Grant Thornton did not determine the scale fee.

The Executive Director Finance and Resources responded to Councillor P. M. McDonald in respect of the recommendation as detailed on page 39 of the report:-

“The revisions to the 2014/2015 budget and 2015/2016 budget setting should include a review of vacancies and whether these should be included in the budgets going forward”.

In response, the Executive Director Finance and Resources informed the Board that there would always be a period during a financial year when vacancies occurred.  She was responsible for the finances but had to rely on Heads of Service, as it was their responsibility to ensure that the finance team was made aware of all vacancies within their departments.  Going forward the budget programme for 2014/2015 would not include any key post vacancies. 

Councillor P. M. McDonald raised questions in respect of the recommendation, as detailed on page 41 of the report:-

“We noted that there wasn’t a clear approval of the Council House / Parkside project supported by a business case prior to a commitment being made”.

In response, the Executive Director Finance and Resources assured Members that approval had been sought, there was an initial clear statement on the first proposal presented to Council in February 2012, which detailed the associated costs of £3.5 million from the 2012/2013 capital project bid, to jointly redevelop the former Parkside Middle School with Worcestershire County Council.  A further report which detailed the financial arrangements for the joint facility with Worcestershire County Council was presented to the Cabinet on 6th February 2013.  The Executive Director Finance and Resources agreed that Members would not have received a business case when initial approval was sought in February 2012.

RESOLVED that the Board note the Grant Thornton Annual Audit Letter year ended 31st March 2014.