Issue - meetings

Decision:

That the Annual Audit Letter for 2018-19 be approved.

Reason:

To approve the Annual Audit Report

Alternative options considered and rejected by the Executive:

None

Details of any conflict of interest declared by the Leader or lead councillors and any dispensation granted:

None

The Executive considered a report on the completed external audit for 2018-19 for which an Annual Audit Letter had been issued.  The Executive commended the overall conclusion reached by Grant Thornton that they were satisfied that the Council had put in place proper arrangements to secure economy, efficiency and effectiveness in its use of resources for the year ending 31 March 2019. 

Having considered the report and noted that the Corporate Governance and Standards Committee had also considered the Annual Audit Letter at its meeting on 30 July 2019 and had commended it for formal approval, the Executive

RESOLVED: That the Annual Audit Letter for 2018-19 be approved.

Reason:

To approve the Annual Audit Report.

The Committee considered a report that set out the external audit findings carried out by Grant Thornton for 2018-19 on the Council’s financial statements and on its arrangements for value for money. 

The Committee noted the additional fees that had been incurred in the last year which incorporated the Future Guildford programme but still equated to less than what had been paid for in audit fees in the previous year.  Marcus Ward, Engagement Manager for Grant Thornton explained that the document included in their agenda pack was draft and that page 10 should be deleted.  The only new piece of information was to confirm the fee the PSA had to agree. 

The Lead Councillor for Finance and Asset Management confirmed that the Council’s credit rating had recently been confirmed which was a good indicator of sound financial health. 

During the debate, the Committee made the following comments:

·         Clarification was sought on the valuation of land and business land in Surrey via control points and adjustments which was noted under the report’s findings and conclusions.  It was confirmed that this matter was addressed at the last Committee where four recommendations had been put forward around the way the council accounted for plant equipment.

·         Queried whether the pension scheme deficit was manageable or a significant audit risk.  It was confirmed that the 2019 funding level would increase further therefore the deficit would fall over time. 

·         Queried why it had not been investigated as to why the North Downs Housing Scheme had not taken much money to date.  It was confirmed that benchmarking schemes such as North Downs Housing was not within the scope of Grant Thornton’s work.  The primary concern with the statement was that it was complete.  The management disclosed the assets and profit made but did not assess whether it was on track or not.  Noted that in the context of the original business plan, it was acknowledged that North Downs Housing was not going to make a profit for 5 years.  However, the scheme had not been able to purchase as many properties as anticipated and therefore an internal audit had been requested by the Director of Finance.

·         Concerned about the strain placed upon the financial team in the preparation of the financial statement when Future Guildford was taking place and the added burden of assisting in two separate elections along with the introduction of a new financial system.  On reflection, the Council would have benefitted from the recruitment of agency staff during this time.

The Committee

RESOLVED:

To approve the Annual Audit Report 2018-19.

Reasons for Recommendation:

To approve the Annual Audit Report 2018-19.