Issue - meetings

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The Interim Finance Project Manager elaborated on a report that had been submitted informing the Committee on the work that had been undertaken towards enabling the external auditors (KPMG) to issue their audit opinion on the 2016/17 Statement of Accounts. It was explained that KPMG had advised the Chief Finance officer that there were 3 specific areas of concerns that they would need evidence and assurance on before being able to issue an audit opinion. It was explained that extensive work had been undertaken, with significant staff resources being diverted to ensure that KPMG were provided with adequate assurance to enable them to issue their opinion. Reassurance was given that the target date for issuing an external audit opinion remained the 31^st January 2018.

In response to questions asked, the Interim Finance Project Manager commented that he was confident that the accounts would be signed off, but should KPMG not be satisfied they would have 2 options; to delay signing off the accounts or to qualify them. Responding to further questions, it was noted that a thorough review of the beacons would be completed by February 2017/18 but would not have any impact on the accounts.

The Chief Finance Officer explained that the extra costs incurred by the additional work undertaken by KPMG was in the region of £30,000 and that the final cost would be incorporated into future update reports from the External Auditors. It was explained that the additional work had not significantly delayed progress on 2017/18 accounts and it was noted that work by the Council and KMPG on next year’s accounts was underway and seemingly positive.

In response to further questions asked, the Interim Finance Project Manager noted that the asset valuation had been extensive and that information would provide a baseline going forwards. It was explained that the Council had an asset register and a finance assets register which supported the accounts. It was further explained that some of the areas of concerns identified could be attributed to a number of factors which included a high turnover of staff in the asset department, as number of sudden departures and as such historic knowledge was lost and insufficient handover notes provided.

The Internal Auditor confirmed that their role in the organisation was to identify and develop plans on key risks areas and the operational processes.

The Chair thanked the officers and noted that whilst there was a need to recognise the areas of weakness identified, there was a need to move forward and be reassured by the reduction of risks.

RESOLVED:

That the Audit Committee noted the progress towards enabling KPMG to issue their external audit opinion on the 2016/17 accounts.