Issue - meetings

That the Wales Audit Office report be noted.

Mr. Mike Whiteley presented the Wales Audit Office (WAO) Audit Plan 2019 which set out the arrangements and responsibilities for proposed audit work for the Council.

In summarising the main points, he highlighted the key financial audit risks on the management override of controls as a generic risk, significant estimates which were complex in nature and subject to judgements and the introduction of new accounting standards where there was open dialogue with Council officers on preparations.  There was no proposed change to the audit fees which included work on the North Wales Residual Waste Joint Committee.  As in previous years, the Audit Plan set out the controls in place to mitigate the potential independent threat set out in paragraph 30.  Appreciation was given to Finance officers for assisting WAO colleagues to deliver the work in accordance with the proposed timetable.

During an overview of the performance audit programme, Mr. Gwilym Bury highlighted common areas such as financial sustainability across all Welsh councils and specific work on reducing rent arrears following welfare reform changes which was a particular issue for Flintshire.  An update was also given on the status of ongoing performance audit work from the previous year’s audit outline.

On the performance audit programme, the Chief Executive spoke about a shift in focus on localised issues and the proposed removal of council obligations under the Local Government (Wales) Measure 2009.  The audit work on rent arrears was particularly welcomed in potentially highlighting contributing factors and the project on Household Recycling Centres would provide independent feedback on access quality.  The Council’s internal protocol (as set out in a later agenda item) provided a mechanism for reporting outcomes of regulatory reports.

On the financial audit programme, the Corporate Finance Manager said that earlier statutory deadline requirements would be met following preparations put in place last year.  On a risks previously identified, he gave an update on transitional arrangements within the team prior to the return of the Finance Manager.  The contributions of the Interim Finance Manager during the period were recognised by the Chief Executive and Committee Members who welcomed his appointment working on the Clwyd Pension Fund accounts.

Councillor Dunbobbin remarked on the duties placed upon the Council by the Well-being of Future Generations Act (Wales) 2015 at a time of financial austerity.  The Chief Executive said that the national work on financial sustainability would highlight the responsibilities on Welsh Government which itself was subject to the obligations of the same legislation.

Councillor Dolphin questioned whether the audit fee represented value for money since the WAO opinions could not give absolute assurance.  Mr. Whiteley explained that the approach to assess risk on sample work was standard practice for external auditors and that absolute assurance could not be given without assessing each individual transaction.

The Chief Officer noted that the audit fee was favourable in comparison to some other North Wales councils, which could be attributed to the quality of work undertaken by the Finance and Internal Audit teams.  The Chief Executive  ...  view the full minutes text for item 59