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Agenda Item No 4

The Vale of Glamorgan Council


Audit Committee 19th September 2018


Report of the Managing Director


Audit of the 2017/18 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 following the audit of the Council's Financial Statements for 2017/18


That the report of the Appointed Auditor on the audit of the Council's Financial Statements for 2017/18 be approved and the Financial Statements including the Annual Governance Statement and 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 Councils Financial Statements for 2017/18.


  1. The Council is responsible for the preparation of the Financial Statements that presents fairly its financial position as at 31st March 2018. The 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.
  2. The Statement of Accounts for 2017/18 was prepared by the 15th June 2018, ahead of 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) this is attached at Appendix B. 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 latest 2017/18 Statement of Accounts incorporating all currently agreed amendments is attached at Appendix A.
  2. The report of the Auditor General for Wales and the final Letter of Representation is attached at Appendix B.
  3. 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 the Council's accounting practices and financial reporting. They found the information provided by officers to be relevant, reliable, comparable, material and easy to understand. The draft accounts submitted to WAO were found to be of good quality. WAO concluded that accounting policies and estimates are appropriate and financial statement disclosures unbiased, fair and clear.
  • They did not encounter any significant difficulties during the audit. WAO received information in a timely and helpful manner and were not restricted in their work.
  • 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.
  1. There are a number of audit adjustments that are included in the Audited Statement of Accounts shown at Appendix B that need to be reviewed to ensure that the proposed adjustments are materially correct. As part of the Audit process a number of audit adjustments have been discussed by the WAO and the Section 151 Officer and agreed and are set out in Appendix 3 to the ISA260 shown at Appendix B.
  2. There is no non material misstatement that remain uncorrected.
  3. 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 2014 (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 Performance and Resources

Background Papers


Contact Officer

Carys Lord

Head of Finance & Section 151 Officer

Directorate of Resources

Officers Consulted

Engagement Lead - Wales Audit Office

Responsible Officer:

Rob Thomas - Managing Director