Issue - meetings

REPORT OF THE SERVICE DIRETOR – RESOURCES

To consider the statement of accounts 2023/24.

RESOLVED: That the Committee:

(1)   Notes the KPMG Annual Report as attached at Appendix B and the KPMG Year End Report to the Finance, Audit and Risk Committee at Appendix C.

(2)   Approves the 2023/24 Statement of Accounts as attached at Appendix A (with the Auditors Report to be added), and that they can be signed by the Chair.

(3)   Approves the signing of a Management Representation by the Chair of the Committee. This will be a standard format and is in the process of being finalised by KPMG.

REASON FOR DECISION: To ensure that the Council abides by the Audit and Account Regulations 2015, which require the approval and publication of audited Statement of Accounts. Furthermore, to meet the back-stop deadlines set out in the Accounts and Audit (Amendment) Regulations 2024.

Audio recording – 11 minutes 2 seconds

The Engagement Director - KPMG presented the reports entitled ‘KPMG Annual Report’ and ‘KPMG Year End Report to the Finance, Audit and Risk Committee’(also known as ISA 260 report), attached as Appendices B and C to the ‘Statement of Accounts’ report and advised that:

·       The ISA 260 report, summaries the findings from the 2023/24 audit for the Council

·       KPMG would be issuing a disclaimed audit due to the previous year being a disclaimed opinion and the short time between the backstop dates for completing the 2022/23 audit and the 2023/24 audit.

·       Audit procedures were completed over elements of the Councils Income and expenditure, cash, payroll and  LGPS balances.

·       The ISA 260 document also highlights audit procedures in relation to the four significant risk areas.

·       KPMG’s disclaimed opinion includes these significant risk areas of valuation of land and buildings, valuation of investment property, and management override of controls. Full audit procedures have been completed over the significant risk in respect of the valuation of the LGPS.

·       Alongside the financial statement audit was the value for money audit, which had a positive opinion of no significant weaknesses.

·       KPMG were assisting on resetting the Local Government market and would aim for full audit procedures to be completed in the near future.

·       Recommendations and identified misstatements are highlight in the report, which were immaterial, and do not impact on the Council’s final reported position. 

The Service Director - Resources presented the report entitled ‘Statement of Accounts 2023/24’ and advised that:

·       The Council had elected not to correct the immaterial errors related to pension assumptions but would take action to try and ensure the errors did not occur for 2024/25 onwards.

·       The report from KPMG contains four recommendations. Receiving recommendations is different in form to Ernist & Young, this was a benefit as if gave the Council insight into potential room for improvement, these were all responded to.

·       Corrections the Council did make following the KPMG audit were in Appendix A highlighted in green.

·       Draft accounts were published online and advertised for public inspection and had no feedback. 

·       The Committee were asked to approve the signing of the KPMG management representation letter that would in a standard format.

The following Members asked questions:

·       Councillor Paul Ward

·       Councillor Ruth Brown

In response to questions, the Engagement Director - KPMG advised that:

·       The time to get out of the disclaimed opinion was not certain but KPMG would work with the PSSA and the Financial Reporting Council to reduce the number of sections with a disclaimed opinion in each annual report, this would give a bit more assurance each year until the disclaimed balances become immaterial, the aim for this was either the 2025/26 or the 2026/27 audits.

·       As part of the KPMG value for money audit risk assessment procedures, concerns were identified around staffing levels, vacancies and turnover, however with further investigation the mitigations the council had in place were satisfactory.

·       KPMG would require a written response from the Council, in  ...  view the full minutes text for item 59