Agenda Item No. 8
The Vale of Glamorgan Council
Audit Committee: 22nd September 2014
Report of the Managing Director
Audit of the 2013/14 Financial Statements - Reporting to Those Charged with Governance
Purpose of the Report
1. To present to those charged with governance the report of the Appointed Auditor, Anthony Barrett of the Wales Audit Office, following the audit of the Council's Financial Statements for 2013/14.
1. T H A T the report of the Appointed Auditor on the audit of the Council’s Financial Statements for 2013/14 be approved and the Financial Statements including the Final Letter of Representation be recommended for signature by those authorised.
Reason for the Recommendation
1. To ensure that the members of the Audit Committee as those charged with governance have considered the results of the audit of the Council's Financial Statements for 2013/14.
2. The Council is responsible for the preparation of the Financial Statements that present fairly its financial position as at 31st March 2014. Anthony Barrett of the Wales Audit Office in his capacity as Appointed Auditor is responsible for reporting whether, in his opinion, this is indeed the case. The audit was undertaken by Grant Thornton UK LLP, as the Council's Engagement Lead, on behalf of the Appointed Auditor.
3. The Statement of Accounts for 2013/14 was prepared by 30th June 2014, in accordance with the statutory timeframe.
4. With the audit of these Financial Statements now substantially complete, a report detailing the key matters arising from the audit must be reported by the Appointed Auditor to those charged with governance, in accordance with the International Standard on Auditing (ISA 260). In line with its terms of reference, the Audit Committee represents the appropriate body to which this report must be communicated.
Relevant Issues and Options
5. The report of the Appointed Auditor together with the 2013/14 Statement of Accounts incorporating all agreed amendments and final Letter of Representation is attached.
6. The provisional findings of Grant Thornton UK LLP on behalf of the Appointed Auditor on the audit of the Financial Statements are that:
· They have concluded on all the risks identified in the Annual Audit Outline and no issues have been identified through their work;
· There are two uncorrected misstatements neither of which are material to the Council;
· There are no concerns with the qualitative aspects of the Council's accounting practices and financial reporting;
· They did not encounter any significant difficulties during the audit.
· There were no significant matters discussed and corresponded upon with management which they need to report on;
· There is one matter significant to the oversight of the financial reporting process that they need to report on and other matters that they wish to be drawn to the Audit Committee's attention.
7. It is the intention of the Appointed Auditor to issue an unqualified audit report on the
Financial Statements once the relevant Council officers have provided a signed
Final Letter of Representation.
Resource Implications (Financial and Employment)
9. As stated in the body of the report.
Sustainability and Climate Change Implications
10. None as a direct consequence of this report.
Legal Implications (to Include Human Rights Implications)
11. The Statement of Accounts is prepared in accordance with the requirements of the Accounts and Audit (Wales) Regulations 2005 (as amended).
Crime and Disorder Implications
12. None as a direct consequence of this report.
Equal Opportunities Implications (to include Welsh Language issues)
13. None as a direct consequence of this report.
14. Reliable Financial Statements assist the Council in managing its assets more efficiently and thereby promotes the achievement of the Council's aims in respect of Community Leadership.
Policy Framework and Budget
15 The proposals in this report are in accordance with the policy framework and budget.
Consultation (including Ward Member Consultation)
Relevant Scrutiny Committee
17. Corporate Resources.
Alan Jenkins - Head of Finance and Section 151 Officer
Engagement Lead - Grant Thornton UK LLP
Sian Davies - Managing Director