Agenda Item No. 6
The Vale of Glamorgan Council
Audit Committee: 21st September 2016
Report of the Managing Director
Audited - Statement of Accounts 2015/16
Purpose of the Report
To advise Committee of the report of the Auditor General for Wales, Huw Vaughan Thomas, following the audit of the 2015/16 Financial Statements of the Shared Regulatory Service and the Vale, Valleys and Cardiff Regional Adoption Service.
That the Financial Statements relating to the Shared Regulatory Service and the Vale, Valleys and Cardiff Regional Adoption Service be noted.
Reason for the Recommendation
To ensure that the Members are aware of the results of the audit of the 2015/16 Financial Statements of the Share Regulatory Service and the Vale, Valleys and Cardiff Regional Adoption Service.
The Vale of Glamorgan Council is responsible for the preparation of the Financial Statements that presents fairly the financial position of the Shared Regulatory Services and the Vale, Valleys and Cardiff Regional Adoption Service as at 31st March 2016. 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 audits were undertaken by the Wales Audit Office, as the Council's Engagement Lead, on behalf of the Appointed Auditor.
The Statement of Accounts for 2015/16 was prepared by the 30th June 2016, in accordance with the statutory timeframe and on 27th July 2016, unaudited copies were brought to this Committee.
The Vale, Valleys and Cardiff Regional Adoption Service accounts were not subject to a full external audit by Wales Audit Office but an Annual Return has been completed by Accountancy and Internal Audit. Wales Audit Office provided a limited assurance audit for the service.
With the audit of these Financial Statements now substantially complete, a report detailing the key matters arising from the audits must be reported by Auditor General for Wales. In line with their terms of reference, the Financial Statements of the Shared Regulatory Service and the Vale, Valleys and Cardiff Regional Adoption Service must be approved by their respective Joint Committees and should be signed by their Chairs.
Relevant Issues and Options
Shared Regulatory Service
The latest 2015/16 Statement of Accounts incorporating all currently agreed amendments is attached at Appendix 1 and the Audit of Financial Statements Report is attached at Appendix 2.
The majority of the audit work is complete and the provisional findings of the Wales Audit Office, on behalf of the Appointed Auditor, is that there are no misstatements identified in the financial statements which remain uncorrected. There are a small number of misstatements that have been corrected by management following discussion between the Wales Audit Office and the Section 151 Officer and are as follows:
IAS19 Pension Fund Actuarial Figures - The IAS19 figures within the Financial Statements and the related disclosures have been amended in accordance with the revised information provided by the Pension Fund actuary to reflect the transfer of staff from the three predecessor Councils to the Shared Regulatory Services Joint Committee.
Employees Emoluments - The Remuneration Bandings table within the Note has been amended to include the fact that individuals received compensation in regard to loss of office. These compensation payments require disclosure within the Note in accordance with the requirements of the Code.
Exit Packages - The number and cost for one of the bandings was amended to reflect the correct basis for compiling the disclosure, in this case including an additional entry to the 0 - £20,000 banding.
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.
Vale, Valleys and Cardiff Regional Adoption Service
The Annual Return has been amended to include an adjustment for accumulated absences. A copy of the return is included at Appendix 3.
Resource Implications (Financial and Employment)
As stated in the body of the report.
Sustainability and Climate Change Implications
There are no immediate sustainability or climate change implications associated with this report.
Legal Implications (to Include Human Rights Implications)
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
The crime and disorder implications were contained in the relevant Cabinet and Council reports.
Equal Opportunities Implications (to include Welsh Language issues)
The Equality implications were contained in the relevant Cabinet and Council reports.
Reliable Financial Statements assist the Shared Regulatory Services and the Vale, Valleys and Cardiff Regional Adoption Service in managing their assets more efficiently and thereby promotes the achievement of its aims.
Policy Framework and Budget
The adopted Scrutiny regime will engage in the review and developments of plans, policies and strategies that support the corporate objectives of each Council.
Consultation (including Ward Member Consultation)
Relevant Scrutiny Committee
The joint services are currently scrutinised through the arrangements in place at each partner Council.
Carys Lord - Head of Finance & Section 151 Officer
Engagement Lead - Wales Audit Office
Rob Thomas - Managing Director