Issue - meetings

(a)       That subject to Wales Audit Office (WAO) being able to confirm its unqualified opinion, the statement of accounts for 2014/15 (including the amendments and corrections circulated by the s.151 Officer) be recommended to Council for approval;

(b)       The Committee recorded its concerns that the issues in the WAO Audit of Financial Statements Report.  It noted that an officer working group was to be established by the Chief Executive to correct the issues in that report (including confirmation that errors in the accounts were not due to underlying errors in the budget), and, having considered the results of that working group, reserved the right to later seek an independent review of processes, if required;

(c)        The Committee considered WAO’s reports: Audit of the Financial Statements – Flintshire County Council, and Audit of the Financial Statements – Clwyd Pension Fund;

(d)       The Committee recommended to Council: the Letter of Representation – Flintshire County Council, and the Letter of Representation – Clwyd Pension Fund; and

(e)       The Committee recommended to Council the Reserves and Balances Protocol. 

The Corporate Finance Manager presented the Statement of accounts for 2014/15 together with the Wales Audit Office (WAO) reports in connection with the audit of the financial statements and Letters of Representation for Flintshire County Council and the Clwyd Pension Fund. 

                        The final accounts incorporated changes agreed by WAO during the course of the Audit, which had been discussed with officers and relevant actions had been taken.  One of the issues arising from the audit of the 2013/14 Accounts was that the Council did not have a clear protocol that set out arrangements for the establishment, discharge and review of its Reserves.  As a result, a Reserves and Balances Protocol was included as Appendix F to the report.  In response to some changes that had been made to the ongoing audit of the accounts and to provide further details on some of the adjustments referred to in the WAO report on the accounts, a briefing note had been circulated in advance of the meeting.  In line with the usual practice, a copy of the final accounts had been included on the agenda for the County Council meeting, to be held in the afternoon, where approval would be sought within the statutory deadline of 30 September.  The Corporate Finance Manager indicated that officers had accepted the findings in the report but explained that none of the issues raised affected the bottom line in the accounts and therefore the outturn position remained unchanged.  He added that WAO had given the accounts an unqualified (clean) opinion.  He commented on the issue of presentation of income figures in some areas but explained that a significant amount of work had been undertaken to resolve the issue and ensure that it did not reoccur in the 2015/16 accounts process.  The report had identified some weaknesses in the strength of internal controls relating to the processing of payroll.  An internal audit had also highlighted this as an area of concern and an action plan was in place.  The Corporate Finance Manager advised that more detailed checking would be built into the timetable for next year.  The issues that had been raised in the 2013/14 Statement of Accounts had been resolved satisfactorily.         

                        Councillor Alison Halford expressed concern about the level of paperwork that Members were required to read on their Ipads, and added that this could result in the Audit Committee failing in its duty to audit the accounts appropriately.  Following a short adjournment to allow Members to be provided with paper copies of the Statement of Accounts report, the meeting resumed at 10.35am.   

            Audit of Financial Statements report for Flintshire County Council 2014/15

                        Mr. John Herniman of WAO acknowledged the production of the accounts and the complex work involved.  All of the issues that had been raised had been addressed but he added that there were some issues that were outstanding in relation to payroll samples and the categorisation of income and expenditure in the Comprehensive Income and Expenditure Statement (CIES).  It was anticipated that these  ...  view the full minutes text for item 34