The Committee considered a report on the
External Audit Report, Letter of Representation and Statement of
The Head of Finance, in presenting the report,
stated that the reporting deadline for the accounts had been
revised and extended to November, due to the pandemic. He reported that Ernst and Young’s
work is substantially complete and they anticipated providing an unqualified audit opinion on the
Statement of Accounts, and an unqualified Value for Money
conclusion. The audit work identified
two valuations of Council property that the auditors considered to
be overstated and these were detailed in paragraph 3.2.3 of the
report. It was noted that the accounts for the property at Bromyard
Road had not been adjusted and this has been noted in the audit
report as an unadjusted difference.
Mr Hassan Rohimun, representing Ernst &
Young LLP, External Auditors, presented the External Audit Report
to the Committee, Appendix 1 of the agenda item. The report covers
the key issues arising from the Audit of the Statement of Accounts
and the Value for Money conclusion. Mr Rohimun presented the report
in sections identifying the key aspects and allowing members the
opportunity to ask questions on each section.
Mr Rohimun proceeded to present the rest of
the report and appendices and responded to Members questions
accordingly, in particular the following sections of the
Section 8 – Data Analytics – use of
graphs for improvement measures and time management, how can these
be followed up in the future. The
Corporate Director – Finance and Resources agreed to work
with the External Auditors to see how the findings can be
explored. A meeting to be arranged by
the External Auditor with the Corporate Director – Finance
Section 9 – Independence – an
explanation of the Redman Review was requested (which was
highlighted in Appendix C). The
External Auditor stated that the impact of the Redman Review would
need a separate meeting as there were a number of recommendations
made and suggested a sperate meeting to present this to
Members. The Chairman asked that this
be presented by the External Auditors at a future
The Head of Finance presented the Letter of
Representation, Appendix 2. Members had no comments on the letter
and agreed the letter would be signed in good faith.
The Head of Finance presented the Statements
of Accounts 2019/20, Appendix 3 and responded to questions from
In response to a query on employee benefits
expenses, the Head of Finance agreed to provide a breakdown of the
figures for 2018/19 and 2019/20 to explain the increase in the
figures and circulate to the Committee.
He did state however that the increases were probably due to
services now provided by the Council which were previously provided
by a third party.
Reference was made to the pensions fund and
climate change and the impact the McCloud judgement will have on an
increase in pension liabilities. In
response the Corporate Director – Finance stated that he was
conscious of the impact ...
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