The Interim Group Manager - Chief Accountant submitted the final Statement of Accounts for 2019-20, which was now due to be certified by the external auditors, Audit Wales, and the associated Letter of Representation of the Council.  He stated that Audit Wales will update the Committee on their main findings from the audit, summarise the audit work carried out in respect of the 2019-20 financial year, and present their Audit of Financial Statements Report, which required the appointed auditor to report those key findings to those charged with governance.

He reported that the unaudited Statement of Accounts 2019-20 was signed by the responsible financial officer on 30 June 2020 and presented to the Audit Committee on 16 July 2020 for noting.  He stated that during the intervening period the external audit had taken place, resulting

in amendments being made to the financial statements noted below:

• Comprehensive Income and Expenditure Statement – to correct the treatment of an asset disposal between Cost of Services and Other Operating Expenditure.
• Balance Sheet – increase in assets to represent the return of a care home to Council ownership.

Neither of these adjustments had an impact on the Council Fund.

He reported that a number of notes were amended that did not affect the financial position of the Council, which are detailed within the Auditor’s Report.  He stated that the audited Statement of Accounts 2019-20 are required to be signed by the Chief Financial Officer and the Chair of the Audit Committee by 15 September, as presenting a ‘true and fair view’ of the financial position of the Council as at 31 March 2020.

He also reported that Audit Wales have substantially completed their audit work and the Statement of Accounts are due to be signed by the Auditor General for Wales on 14 September 2020, subject to Audit Committee approval of the accounts.  The Council Fund and Earmarked Reserves balances as at 31 March 2020, as presented to the Audit Committee in June 2020, have not changed.  He stated that one recommendation had been raised following the audit, compared to nine the previous year.  The recommendation is in relation to the oversight of the Council’s Fixed Asset Register in that the Council should strengthen its controls in relation to the Asset Register by undertaking regular reviews of access and use of the system.  He reassured the Committee, that annual checks are undertaken

through ensuring opening balances in the current year match closing balances the prior year as part of the annual Statement of Accounts Closing process, and additions and disposals match transactions within the core accounting system.  He stated that reviews will be undertaken during the year to ensure the continued integrity of the data held within the Asset Register to provide additional assurance in line with the recommendation.

The Audit Wales representative informed the Committee that it had discharged its requirements and intended to issue an unqualified audit certificate, confirming that they present a true and fair view and are properly prepared.  He thanked the staff for their professionalism and informed the Committee that the Auditor General will certify the accounts on 14 September 2020.

The Interim Group Manager Chief Accountant commented on the positivity of the report which had been achieved during a challenging time with several new members of staff joining the Team.  He thanked the Audit team for their support. 

The Interim Chief Officer Finance, Performance and Change and Chairperson thanked the Finance Team and the  external auditors for their work on the Statement of Accounts.

RESOLVED:           That the Committee:

•           approved the audited Statement of Accounts 2019-20 as amended (Appendix A)

•           noted the appointed auditors Audit of Financial Statements report (Appendix B)

•           noted and agreed the Final Letter of Representation to the Wales Audit Office (Appendix C).