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Agenda Item No

The Vale of Glamorgan Council

 

Audit Committee 21st September 2015

 

Report of the Managing Director

 

Audit of the 2014/15 Financial Statements - Reporting to Those Charged with Governance

 

Purpose of the Report

  1. To present to those charged with governance the report of the Auditor General for Wales Huw Vaughan Thomas, following the audit of the Council's Financial Statements for 2014/15.

Recommendation

That the report of the Appointed Auditor on the audit of the Council's Financial Statements for 2014/15 be approved and the Financial Statements including the Final Letter of Representation be recommended for signature by those authorised.

Reason for the Recommendation

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 2014/15.

Background

  1. The Council is responsible for the preparation of the Financial Statements that presents fairly its financial position as at 31st March 2015. Huw Vaughan Thomas of the Wales Audit Office in his capacity as Auditor General for Wales 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.
  2. The Statement of Accounts for 2014/15 was prepared by 30th June 2015, in accordance with the statutory timeframe.
  3. With the audit of these Financial Statements now substantially complete, a report detailing the key matters arising from the audit must be reported by Auditor General for Wales 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

  1. The report of the Auditor General for Wales together with the 2014/15 Statement of Accounts incorporating all agreed amendments and final Letter of Representation is attached.
  2. 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 three uncorrected misstatements none 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 no matter significant to the oversight of the financial reporting process that they need to report on
  • They did identify some material weakness in internal controls which are set out and addressed by management in Appendix 4 of the report.
  1. 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)

  1. As stated in the body of the report.

Sustainability and Climate Change Implications

  1. None as a direct consequence of this report.

Legal Implications (to Include Human Rights Implications)

  1. 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

  1. None as a direct consequence of this report.

Equal Opportunities Implications (to include Welsh Language issues)

  1. None as a direct consequence of this report.

Corporate/Service Objectives

  1. 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

  1. The proposals in this report are in accordance with the policy framework and budget.

Consultation (including Ward Member Consultation)

  1. None.

Relevant Scrutiny Committee

  1. Corporate Resources.

Background Papers

None

Contact Officer

Carys Lord - Head of Finance and Section 151 Officer

Officers Consulted

Engagement Lead - Grant Thornton UK LLP

Responsible Officer:

Rob Thomas - Managing Director

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