Skip to main content

Agenda item

Statement of Accounts 2020/21

Purpose

This report presents the Council’s audited Statement of Accounts for the period 1st April 2020 to 31 March 2021 to enable the Committee to consider and approve the Council’s accounts.

 

Recommendation(s)

a)    That the Grant Thornton Audit Findings for Cotswold District Council be noted.

b)    The Statement of Accounts 2020/21 be approved.

c)    To note the officer responses to Audit Committee Comments. 

d)    To note the update to the Annual Governance Statement.

e) That the Chief Finance Officer and the Chairman of the Audit Committee be authorised to write a letter of representation on behalf of the Committee and Council to Grant Thornton to enable the opinion to be issued.

Minutes:

The Deputy Chief Executive started by expressing thanks to Officers and Grant Thornton for their work.

 

Chief Accountant opened the item for the Statement of Accounts which included an updated version of the Accounts which had been first presented to the Audit Committee in July. The Chief Accountant stated that there had been some minor corrections and changes of a disclosure and narrative nature only as outlined in the document pack from the external auditors.

 

The Chief Accountant outlined Annex A which included suggestions for amendments to the Statement of Accounts from Grant Thornton, Annex C which included comments and queries from Members with responses from Officers in respect of the draft Statement of Accounts and Annex D which outlined the Annual Governance Statement, tracking changes between the current and prior year Statement

 

The Committee thanked report authors for highlighting changes made which had made analysing the document easier for Members. There was a query from the Committee regarding the order of questioning on the documents presented.

 

The Chair outlined how the report from Grant Thornton (Annex A) would have questions to the External Auditor, and then the other documents presented would have questions to Chief Accountant and Deputy Chief Executive.

 

The Committee asked about the figures and how they are presented with the document. An example was raised regarding the revised budget being £1.68 million less than the original budget, and wishing to note what the outcome of these lower figures means.

 

The Deputy Chief Executive recognised the point made, but highlighted that the document was circulated in July for Members of the Committee to review, raise questions and make suggested changes to the Statement of Account.  It was further reported that any changes would need to go back to Grant Thornton for review before the Accounts would be approved and the external audit opinion issued.  A commitment was made to take any other questions outside of the meeting for individual queries.

 

The External Auditor opened by reiterating the points from the Progress Report made from the previous meeting. The auditor spoke regarding the Audit Findings report in Annex A, and how progress had been made.

 

It was highlighted by the External Auditor that whilst work was on track before this meeting, staff absences meant that the closing procedures have not been concluded. Following discussions with Officers at the Council, the sign off for these procedures are now due to be completed in early December, however this could be January if the staff absence remains an issue.

 

The Committee asked whether the documents in Annex A were draft findings or the final version of the Audit Findings Report.

 

The Chair outlined that this was the final wording other than some outstanding issues.

 

The External Auditor outlined parts of Annex A which require resolution, for example financial instruments. The outstanding items are relatively immaterial to the Accounts and should be completed once the staff absence is resolved.

 

The Chair referred to Annex A and Appendix E regarding responsibilities for governance arrangements and the financial reporting process.

 

The External Auditor referred to the wording within the document providing assurance that the Accounts are materially accurate and that all regulations are being adhered to.  However, the External Auditor recognised that the terminology and the narrative was difficult to read and understand due to the technical language which had to be used.

 

The Chair then moved the Committee to Appendix F and outlined suggested changes to the wording of the Management Letter of Representation. The External Auditor thanked the Chair for pointing out the changes within the draft, and stated that when the opinion is released the changes would be made.

 

The Committee queried the Value for Money (VFM) arrangements and the wording around financial risks within the document.

 

The External Auditor outlined changes in the new VFM approach and specifically how financial sustainability is being assessed.  An independent assessment would then be reported to the Committee.

 

The External Auditor however made it clear that work so far does not indicate any negative practices towards the management of finances by the Council.  Instead, the report is outlining the areas where there are uncertainties in the financial position of all or many local authorities going forward.

 

The External Auditor, following further queries, outlined the Audit Plan and the areas of focus. These are financial sustainability, governance, and economy, efficiency and effectiveness with a particular focus on financial sustainability.

 

The Committee noted that there have been understandable difficulties resulting in the sign-off being delayed.  The Committee also noted the misprint of the date for the Audit Findings Report of 31st January 2021 rather than 2022.

 

The External Auditor recognised this and noted this for correction.

 

Following queries from the Committee regarding any updates to the auditor’s findings, the Deputy Chief Executive assured the Committee that she would keep Members updated on progress for the sign-off.

 

The Committee also raised a query in respect of the Whole Government Accounts thresholds  referred to in the Audit Findings Report  and how far the Council was from those thresholds for the additional audit procedure.

The External Auditor confirmed that the Council was not subject to these more stringent measures.

 

The Committee also asked about the wording referring the Valuation Report and what the wording of ‘read and understood’ means going forward.

 

The External Auditor explained that this referred to the previous year recommendation on the valuation report.

 

The Committee also noted the ‘management response’ the Depreciation section of Appendices C.

 

The External Auditor outlined a number of assets that have been fully depreciated, and how going forward there needs to be more critical evaluation before the end of the useful economic life of assets.

 

The Committee also referred to Annex B regarding the Statement of the Accounts and the reduction of income from parking and questioned if grant funding being provided had covered the shortfall.

 

The Deputy Chief Executive responded that the Quarter 2 Finance and Performance report would be presented to the next Overview and Scrutiny Committee and would include detail on this matter.

 

RESOLVED: that recommendations a), b), c), d), and e) were approved as presented to the Committee.

 

Voting Record

 

6 for, 0 against, 0 abstention, 1 absent

 

Supporting documents:

 

Related Pages