Agenda item

To receive an update on the 18/19 accounts.

The Chairman introduced the item and invited Andy Brown, Interim Corporate Director of Resources, to give an update.

Andy Brown explained that, since the initial issue of the presentation of fixed assets was identified, it was thought that the process would be straight forward to resolve. Since then it became apparent that the issues were more complicated and required more work to resolve.

Actions taken to resolve the issues included implementing a new asset accounting system to ensure compliance, the system was used to revaluate all Wiltshire assets to ensure the correct valuation values and accumulated depreciation were corrected. Following this work, the presentation of the Comprehensive Income and Expenditure Statement had changed, albeit with no change to the net, bottom line figures, and the two non-usable reserve notes, the Revaluation Reserve and the Capital Adjustment Account were also restated. More work had been carried out to provide evidence to support assurance on the opening balance of the reserves, although, the time frame had now passed with not enough evidence provided to satisfy the auditors.

Following this a decision was taken to recommend to the Audit Committee that the accounts be signed off to allow the 2019/20 accounts and audit process to be concluded within the statutory deadline, accepting the auditors opinion and removing the relevant technical areas from the scope of the audit opinion. This would enable officers time to plan properly to resolve the issues for 2020/21. 

This would result in an audit opinion of ‘qualified, except for’ which meant that, except for the matters detailed in the audit report relating to the balances on the two technical reserves, the accounts would present a true and fair view.

Andy Brown explained that the impact for the Statement of Accounts was very limited,  there would be no impact on the net financial position of the council, General Fund Reserve, council tax payer nor for the resources available for delivery services and it would not affect any decision for financial planning purposes.

Previously the audit committee had approved that the final sign off was delegated to the Director of Finance and Procurement (S.151 Officer) in consultation with the Chairman of the Audit Committee, once agreement had been finalised with Deloitte. Given the significance of the outcome it felt appropriate for the 2018/19 accounts to be presented in full at the next audit committee.

Ian Howse, Deloitte, reiterated that the issues related only to technical issues, they would not impact tax payers and that it would not impact Wiltshire Council’s ability to function.

Lizzie Watkin, Head of Corporate Finance, explained the technical process of why the issues would not affect the council’s bottom line.

In response to questions it was noted that a press statement had been published publically; officers believed central government would not be taking too much interest in the issues unless they were significant; there would be additional fees due to the amount of work involved in resolving the issues and they would be reported to a future meeting and that although additional costs had been incurred in purchasing new software, the systems needed to be upgraded to reflect the modern nature of the organisation.

Following which it was;

RESOLVED

Members approved the update on the progress of the 2018/19 audit.

It was agreed to receive the Statement of Accounts 2018/19 at the next audit committee in November, to enable the Committee to provide the formal and final sign off on the 2018/19 accounts.