Agenda item

To receive the ISA 260 report.

At the Chairman’s invitation, Ian Howse (Deloitte) presented the report to those charged with governance (ISA 260) 2019/20.

Mr Howse stated that whilst it had taken longer than expected to get to this position, the audit report on the 2019/20 accounts brought together all of Deloitte’s findings. It was explained that all the detailed work was complete, however there were still a few items outstanding. There were a number of recommendations in the report which Mr Howse was happy to take questions on. It was stated that the audit opinion would be qualified, due to the revaluations reserves on the balance sheet. It was hoped that the qualification would be removed for the 2020/21 accounts. The report also included a draft audit opinion.

It was explained that the Annual Governance Statement had been reviewed and it complied with the Delivering Good Governance guidance issued by CIPFA/SOLACE and there were no significant issues identified.

There were also no matters in the public interest to report and no significant value for money risks were identified.

The report confirmed Deloitte’s independence and fees at the end. Mr Howse stated that there had been great collaboration between his team and the Wiltshire Council team and many of the problems identified were from many years before most of the team joined the Local Authority.

Andy Brown (Corporate Director Resources, Deputy Chief Exec and s151) echoed Mt Howse’s comments. The team had worked incredibly hard to overcome the historical issues. It was disappointing that the accounts would have a technical qualification, but the team were starting to address the technical accounting issues and it was hoped that in the Statement of Accounts 2020/21 they would be able to remove the except for qualification.

Lizzie Watkin (Assistant Director Finance & Deputy s151) stated that all items in the report had management responses, so all the areas identified would be worked on and corrected. There was a robust action plan in place, which also addressed learning and development to ensure there were no gaps in technical knowledge.

In response to questions officers explained that resources (such as staffing and budgets) were discussed regularly. It was believed the budget was sufficient, if not officers would request more resources. Attracting staff with the right experience was difficult, which was a problem across the board for Local Authorities. Consultants had to be used, some of which had been really good and helped to train other staff to address gaps in knowledge. A Chief Accountant had now been recruited which was a very positive step.

In response to a question on the value of assets it was explained that assets were not held to make money, but to deliver services. The property had a database of insurable values, which assets were in use or held for sale.  

In response to a question regarding Deloitte’s opinion of the management responses Mr Howse stated that he was happy with the responses received, they were proportionate, and he sensed a real commitment from the team.

Members stated that it may be useful to have visibility of the timetabling of implementation of management actions or whether actions were no longer required.

It was confirmed that the 2020/21 and 2021/22 accounts were being run concurrently.

Members congratulated the Deloitte and Wiltshire Council teams on the positive progress made towards addressing the historical issues.

Resolved:

To note the report.