Agenda Item No 4
The Vale of Glamorgan Council
Shared Regulatory Services Joint Committee: 20th September 2016
Report of the Director of Environment and Housing
Shared Regulatory Services Statement of Accounts 2015/16
Purpose of the Report
- To present to those charged with governance the report of the Auditor General for Wales, Huw Vaughan Thomas, following the audit of the 2015/16 Financial Statements of the Shared Regulatory Services.
- That the Appointed Auditor's report relating to the audit of the 2015/16 Financial Statements for the Shared Regulatory Services be approved
- That the Financial Statements, including the Final Letter Of Representation, be approved for signature by the Chair of the Shared Regulatory Service Joint Committee.
Reasons for the Recommendations
- To ensure that the members of the Joint Committee, as those charged with governance, have considered the results of the audit of the 2015/16 Financial Statements of the Share Regulatory Services.
- To ensure that the financial statements are signed as required.
- 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 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 audit was 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 28th June 2016, a pre-audit copy was presented to this Committee.
- 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 Joint Committee represents the appropriate body to which this report must be communicated
Relevant Issues and Options
- The Joint Working Agreement states that "The Joint Committee shall meet on or before the 30th September in each Financial Year to approve the Audited Statement of Accounts of the Joint Committee for the previous financial year." This shall be presented along with the Audit of the Financial Statements report, prepared by the designated external auditor.
- The report of the Auditor General for Wales together with 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 Welsh 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 Welsh 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 Council 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.
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 in managing its 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 SRS is currently scrutinised through the arrangements in place at each partner Council.
Carys Lord - Head of Finance & Section 151 Officer
Engagement Lead - Wales Audit Office
Miles Punter - Director of Environment and Housing