Agenda Item No
The Vale of Glamorgan Council
AUDIT COMMITTEE 25th SEPTEMBER 2008
REPORT OF THE DIRECTOR OF FINANCE ICT & PROPERTY
AUDIT OF THE FINANCIAL STATEMENTS - REPORTING TO THOSE CHARGED
WITH GOVERNANCE
Purpose of the Report
1.
To present the Wales Audit Office report prepared by the Council's
External Auditors Grant Thornton UK LLP to those charged with
governance following the audit of the Council's Financial
Statements for 2007/08.
Recommendations
T H A T the report of Grant Thornton UK LLP on
the Audit of the Council’s Financial Statements for 2007/08 be
endorsed and the Financial Statements including the final Letter of
Representation be recommended for signature by those
authorised.
Reasons for the Recommendations
To ensure that those charged with governance
have considered the results of the audit of the Council's Financial
Statements for 2007/08.
Background
2.
The Council is responsible for the preparation of Financial
Statements that presents fairly its financial position as at 31st
March 2008. Grant Thornton UK LLP, as the Council's external
auditors, are responsible for reporting whether, in their opinion,
this is indeed the case.
3.
The draft Statement of Accounts for 2007/08 was reported to Council
on 26th June 2008. With the audit of these Financial
Statements now substantially complete, a report detailing the key
matters arising from the audit must be reported by Grant Thornton
UK LLP 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
4.
The
report of Grant Thornton UK LLP together with the 2007/08
Statement of Accounts incorporating all agreed amendments is
attached.
5.
The provisional findings of Grant Thornton UK LLP on the audit of
the Financial Statements are that:
·
There are no concerns with the qualitative aspects of the Council's
accounting practices and financial reporting;
·
There are three uncorrected misstatements (none of which are deemed
to be material in nature);
·
There are no expected modifications to the standard auditor's
report;
·
The audit did not identify any material weaknesses in internal
control;
·
There are no other matters which need to be reported as required by
other ISAs; and
·
There are no other significant audit matters of governance interest
to report.
6.
It is, therefore, the intention of Grant Thornton UK LLP to issue
an unqualified auditor's report on the Financial Statements once
the Council has provided an updated and re-signed Letter of
Representation. Grant Thornton's conclusion as to whether the
Council has made proper arrangements for securing economy,
efficiency and effectiveness in its use of resources will be
reported separately in the Relationship Manager's Audit Letter.
Resource Implications (Financial and Employment)
7.
As stated in the body of the report.
Legal Implications (to Include Human Rights Implications)
8.
The Statement of Accounts is prepared in accordance with the
requirements of the Accounts and Audit (Wales) Regulations
2005.
Crime and Disorder Implications
9.
None as a direct consequence of this report.
Equal Opportunities Implications (to include Welsh Language
issues)
10. None as a direct
consequence of this report.
Corporate/Service Objectives
11. 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 Corporate Resources.
Policy Framework and Budget
12. The proposals in this
report are in accordance with the policy framework and budget.
Consultation (including Ward Member Consultation)
13. No further
consultation is proposed.
Relevant Scrutiny Committee
14. Corporate
Resources.
Background Papers
None
Contact Officer
Alan Jenkins
Officers Consulted
External Audit Manager - Grant Thornton UK
LLP
Responsible Officer:
Alan Jenkins - Head of Accountancy &
Resource Management