Issue - meetings

Report by Chief Operating Officer

7.1       The Committee considered a report by the Chief Operating Officer regarding the Independent Auditor’s report and Statement of Accounts 2016-17.

7.2       The Committee RESOLVED –

1) to note the Independent Auditor’s (KPMG) report to those charged with governance on ESCC Accounts, and the Value for Money conclusion report;

2) to authorise the Chief Finance Officer to sign the formal Letter of Representation to KPMG LLP; and

3) to approve the 2016/17 Statement of Accounts for publication.

Report by the Chief Operating Officer

5.1       The Chief Finance Officer introduced the report to those charged with governance, together with the Statement of Accounts, and the representatives from KPMG.  He confirmed that the report, and any comments from the Committee would be referred to the Governance Committee. 

5.2       Jo Lees, KPMG Director, outlined the effective audit assisted by good working papers produced on schedule, and she thanked the Finance team for their cooperation.  She outlined three key areas: the Triennial valuation of the Pension Scheme, the Minimum Revenue Provision and accounting for ownership of local authority maintained schools.  She confirmed that there was nothing within those areas that she needed to bring to the Committee’s attention. She also set out an adjusted audit difference of £2.7m connected with assets depreciation charges. 

5.3       The Committee discussed accounting for schools, and expressed frustration that the ownership issue is still unresolved in respect of 21 schools (one having obtained Academy status).  Jo Lees confirmed that the relevant guidance is that until such time as the Diocese can prove title to the schools in question, the cautious approach is to retain them in the Authority’s accounts.  

5.4       In respect of the Minimum Revenue Provision, the Head of Accounts and Pensions set out that the payments had been re-profiled, in line with advice from an independent Treasury Management adviser and the CLG guidance.

5.5       The Committee RESOLVED to (1) note the report and its appendices;

(2) confirm that there are no concerns arising from the Independent Auditor’s (KPMG) Report that need to be brought to the attention of the Governance Committee; and

(3) congratulate staff on their efforts in ensuring an effective audit.