Agenda Item No. 4
The Vale of Glamorgan Council
Shared Regulatory Services Committee: 26th September 2017
Report of the Director of Environment and Housing
Audit of the 2016/17 Shared Regulatory Services Financial Statements
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 2016/17 Financial Statements of the Shared Regulatory Service.
- That the Appointed Auditor's report relating to the audit of the 2016/17 Financial Statements for the Shared Regulatory Service 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 2016/17 Financial Statements of the Shared 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 2017. 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 2016/17 were prepared by the 30th June 2017, in accordance with the statutory timeframe and on 27th June 2017, unaudited copies were brought 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
Shared Regulatory Service
- 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 latest 2016/17 Statement of Accounts incorporating all currently agreed amendments is attached at Appendix A and the Audit of Financial Statements Report (ISA260) is attached at Appendix B.
- The provisional findings of The Welsh Audit Office on behalf of the Appointed Auditor on the audit of the Financial Statements are that :
- WAO have no concerns about the qualitative aspects of your accounting practices and financial reporting. They received the draft Statement of Accounts ahead of schedule and found the information provided to be relevant, reliable, comparable, material and easy to understand. WAO concluded that accounting policies and estimates are appropriate.
- They did not encounter any significant difficulties during the audit. There were no significant matters discussed and corresponded upon with management which need to be reported.
- There are no other matters significant to the oversight of the financial reporting process that they need to report on.
- They did not identify any material weaknesses in the internal controls.
- There are not any other matters specifically required by auditing standards to be communicated to those charged with governance.
- The majority of the audit work is complete and the provisional finding 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 were a number of small misstatements that have been corrected following discussion between the Wales Audit Office and the Section 151 Officer and these are set out in Appendix 3 to the ISA260 (Appendix B).
- 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 2014 (as amended).
Crime and Disorder Implications
- None as a direct consequence of this report.
Equal Opportunities Implications (to include Welsh Language issues)
- None as a direct consequence of this report.
- 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 development of plans, policies and strategies that support the corporate objectives of each Council.
Consultation (including Ward Member Consultation)
Relevant Scrutiny Committee
- The Shared Regulatory Services 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