Agenda item - Audit Findings and Statement of Accounts 2016/17

Agenda item

Audit Findings and Statement of Accounts 2016/17

To receive the recommendation from the Audit, Standards and Governance Committee held on 14th September 2017 on the Audit Findings and Statement of Accounts

 

(The reports have previously been circulated please bring them to the Council Meeting)

 

Minutes:

The recommendations from the Audit, Standards and Governance Committee, in respect of the Audit Findings and Statement of Accounts for 2016/17 were proposed by Councillor M. J. A. Webb and seconded by Councillor B. T. Cooper.

 

Councillor Webb, as Chairman of the Audit, Standards and Governance Committee, presented the report and Minutes of the Committee held on 14th September, when this report had been considered.  Members were reminded that they had all been invited to attend that meeting.  This was the second year that the Audit Findings and Statement of Accounts had been considered by this Committee and the Chairman expressed his disappointment that only Members of the Committee had been in attendance at that meeting.

 

During presentation of the Audit Findings and Statement of Accounts Councillor Webb highlighted that the accounts had been submitted a month early in preparation for the revised deadline for local authority accounts which would be brought forward in 2018/19.  The accounts were unqualified, and Grant Thornton, the external auditors, had recognised that improvements had been made from the previous year although there was still work to be done.  The areas which were highlighted for further improvement were already being addressed through the senior management team and it was confirmed that a new Financial Services Manager had been employed and would take up his post shortly and that arrangements had been made for a secondment from Solihull Metropolitan Borough Council to cover the forthcoming maternity leave of the Chief Accountant.

 

A qualified value for money conclusion would be issued by the external auditor.  Again improvements had been made but these were not sufficient to enable an unqualified conclusion to be given.  This was being addressed by the Executive Director, Finance and Resources in conjunction with the Portfolio Holder for Finance and Enabling and regular reports would be received by the Audit, Standards and Governance Committee to monitor progress made.

 

During the following debate Members commented on a number of areas including:

 

·         The seriousness of the position the Council was in and the areas which had been highlighted as needing further work.  Particular attention was drawn to the poor quality of business plans.

·         The budgeting issues which had been raised, including calculation of savings and the need for these to be improved to ensure that this did not happen in the future.

·         The ongoing cost of Burcot Lane and the delay in its demolition.

·         Whilst Members recognised that improvements were being made these were not fast enough in light of the seriousness of the situation.

 

Councillor Cooper, Portfolio Holder for Finance and Enabling, responded to a number of the points raised and reminded Members that there had been positive feedback from Grant Thornton at the Audit, Standards and Governance Committee meeting and that improvements had been made, although not sufficient.  The problems had been acknowledged in July and actions taken to address these were already underway.  Arrangements were being made for Heads of Services to meet with the Chief Executive, his Deputy and the Executive Director, Finance and Resources in order for every line of their budgets to be scrutinised.  A new business plan template had been created to ensure uniformity and had been discussed with the external auditors.

 

The Leader also assured Members that the matter was being taken seriously and reiterated that the areas of concern were being addressed.  He took the opportunity to thank the Finance and Budget Working Group for their support over the last 12 months and hoped that this would continue in order to meet some of the requirements in the report. 

 

RESOLVED:

 

a)    that the draft letter of representation be approved; and

b)    that the Statement of Accounts 2016/17, including the Accounting Policies, be approved.

 

Supporting documents: