Issue - meetings

Report by the Chief Operating Officer

7.1       The Committee considered a report by the Chief Operating Officer.  Final versions of Appendix A (the ISA260 - Report to those charged with governance) and Appendix B (Statement of accounts), which had been marked as draft in the published agenda papers, were circulated. 

7.2       Philip Johnstone of external auditors KPMG highlighted the following issues:

·        The unqualified Value for Money judgement;

·        The material adjustment of around £36m regarding Voluntary Controlled schools and the new auditing regulations that require them to be kept on the County Council’s balance sheet until it can be conclusively proved that another party owns the asset – the Diocese of Chichester is currently in the process of reviewing its records to establish title to 22 schools;

·        The formal objection from an elector to the Bexhill Hastings Link Road to which the external auditors have issued a provisional response;  

·        The 25% reduction in external audit fees for the following financial year;

·        The unqualified opinion on the Pension Fund ISA260.

7.3       The Committee discussed the calculation of depreciation.  Marion Kelly, Chief Finance Officer, offered to provide a briefing for the Committee.

7.4       RESOLVED to (1) note the report and its appendices and the comments of the external auditor;

(2) confirm that there are no concerns arising from the Independent Auditor’s (KPMG) report or the management response to it, that need to be brought to the attention of the Governance Committee; and

(3) thank the external auditors, Marion Kelly, Ola Owalabi and the rest of the Finance team in completing the audit two months ahead of the usual schedule.