The Finance Manager – Technical and Corporate submitted a report, the purpose of which, was to present the audited Statement of Accounts for the financial year 31^st March 2015.

The Accounts & Audit Regulations required that the Joint Committee approve the audited Statement of accounts by 30^th September.

The Chief Accountant explained that the unaudited Statement of Accounts were placed on public deposit following Joint Committee approval in June 2015. KPMG the external auditors appointed for the Joint Committee by the Wales Audit Office had now completed their audit and had not made any amendments other than some minor presentational adjustments. The surplus therefore remained at £301,000 with total reserves of £1.306million as previously reported to the Joint Committee in June 2015.

The audited accounts she explained, were attached as Appendix 1 to the report (pages 13-44) and had been produced in line with the Code of Practice on Local Authority Accounting in the UK for 2014.  There were no changes to the accounts, however, the Chief Accountant pointed out that the cash position as shown on page 38 of the Statement of Accounts had increased from £425,000 at 31.3.2014 to £618,000 as at the 31.3.2015. As with all financial statements, she added that the cash flow position was a snapshot in time, with the position changing daily. However it ass encouraging to note that the Catalogue Supplies Service continued to maintain a healthy cash position which will be partly used to support the relocation plans of the service. The impact on useable reserves and estimated surplus remaining will be closely monitored to ensure that any costs associated with the relocation are affordable and won’t have a negative impact on cash balances.

Paragraph 4.2 of the report provided details of the mutual responsibilities of the auditor and the audited body which were expressed in Appendix 2 & 3 of the report

The Letter of Representation, which is attached as Appendix 2 to the report, (pages 59-61) confirmed to the best of one’s knowledge and belief, having made appropriate enquiries of other Officers of the Catalogue Supplies Joint Committee, certain assurances to the auditors regarding the financial statements for Catalogue Supplies Joint Committee for the year ended 31 March 2015. This letter would require signing by the Chairperson of the Joint Committee and the Section 151 Officer who acts as the Treasurer to the Joint Committee confirmed the Chief Accountant.

The auditors had also prepared an “Audit of Financial Statements Report for 2014-15”, which appeared at Appendix 3,(pages 63 to 74 of the report). It summarised the key issues identified during the consideration of the Statement of Accounts and Annual Governance Statement. The auditors identified two internal control weaknesses during the audit in respect of the stock count control process, and recommended that:

·         Checks should be put in place to ensure that stock balances are updated accurately with the results of the stock count, and

·         That they should be made aware of the process including any recounts so that timely attendance can be arranged to count the final agreed stock count balances.

These recommendations had been accepted by the service and working practices had been amended by the Business Operations Manager to incorporate these changes, she explained.

RESOLVED:                       That the Joint Committee

(1)  Approved the audited Statement of Accounts for 2014-15, Appendix 1 to the report.

(2)  Noted and agreed the Letter of Representation to be provided to KPMG and the Wales Audit Office, Appendix 2 to the report.

(3)  Noted the auditor’s Audit of Financial Statements Report for 2014-15, Appendix 3 to the report