Agenda Item No 5

The Vale of Glamorgan Council

Audit Committee 19th September 2018

Report of the Managing Director

Audit of the 2017/18 Joint Committee Financial Statements - Reporting to Those Charged with Governance

Purpose of the Report

1. To advise Committee of the report of the Auditor General for Wales, following the audit of the 2017/18 Financial Statements of the Shared Regulatory Service and the Vale, Valleys and Cardiff Regional Adoption Service.

Recommendations

1. That the Financial Statements relating to the Shared Regulatory Service and the Vale, Valleys and Cardiff Regional Adoption Service be noted.
2. That the report of the Appointed Auditor on the audit of the Shared Regulatory Service Financial Statements for 2017/18 be noted.

Reasons for the Recommendations

1. To ensure that the Members are aware of the results of the audit of the 2017/18 Financial Statements of the Shared Regulatory Service and the Vale, Valleys and Cardiff Regional Adoption Service.
2. To ensure that the Members of the Audit Committee, as those charged with governance, have considered the results of the audit of the Shared Regulatory Service Financial Statements for 2017/18.

Background

2. 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 2018. The 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.
3. The Statement of Accounts for 2017/18 was prepared by the 15th June 2018, in advance of the statutory timeframe and on 25th July 2018, unaudited copies were brought to this Committee.
4. 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.
5. 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 in line with their terms of reference and 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

6. The latest 2017/18 Statement of Accounts incorporating all currently agreed amendments is attached at Appendix A and the Audit of Financial Statements Report is attached at Appendix B.
7. 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 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 that they need to report on.
• 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.

8. 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.
9. 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

10. The Annual Return is included at Appendix C and is unchanged from the return brought to Committee on 25th July 2018.

Resource Implications (Financial and Employment)

11. As stated in the body of the report

Sustainability and Climate Change implications

12.      There are no immediate sustainability or climate change implications associated with this report.           

Legal Implications (to Include Human Rights Implications)

13. 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

14. None as a direct consequence of this report.

Equal Opportunities Implications (to include Welsh Language issues)

15. None as a direct consequence of this report.

Corporate/Service Objectives

16. 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

17.      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)

18. None

Relevant Scrutiny Committee

19. The joint services are currently scrutinised through the arrangements in place at each partner Council.

Background Papers

None

Contact Officer

Carys Lord - Head of Finance & Section 151 Officer

Officers Consulted

Engagement Lead - Wales Audit Office

Responsible Officer:

Rob Thomas - Managing Director