Issue - meetings

Draft Statement of Accounts 2018/19

Meeting: 10/07/2019 - Audit Committee (Item 16)

16 Draft Statement of Accounts 2018/19 pdf icon PDF 116 KB

Additional documents:

Decision:

(a)       That the draft Statement of Accounts 2018/19 (which includes the Annual Governance Statement approved by the Committee at its June 2019 meeting) be noted; and

 

(b)       That Members note the opportunity to discuss any aspect of the Statement of Accounts with officers or the Wales Audit Office throughout July, August and September, prior to the final audited version being brought back to the Committee for recommendation to Council for final approval on 11 September 2019.

Minutes:

The Corporate Finance Manager presented the Draft Statement of Accounts 2018/19 (subject to audit) for information only at this stage.  These comprised the Group accounts, including its wholly owned subsidiaries, and the Annual Governance Statement considered at the previous meeting.  The final audited accounts would be received on 11 September for approval and recommendation to County Council on the same day, ready for publication by 15 September in preparation for earlier statutory deadlines.

 

The Corporate Finance Manager and Finance Manager - Technical Accountancy gave a joint presentation covering the following:

 

·         Purpose and Background of the Accounts

·         Contents and Overview

·         Responsibility for the Accounts

·         Accounts Governance Group

·         Links to Budget Monitoring

·         Headlines - Council Fund, Revenue Reserves, Capital and Housing Revenue Account (HRA)

·         Changes to the Accounts for 2018/19

·         Group Accounts

·         Timeline and Next Steps

·         Impact of Earlier Deadlines

·         Clwyd Pension Fund Accounts

 

Mr. Mike Whiteley of Wales Audit Office (WAO) welcomed the continued co-operation of officers in preparing for the audit and advised that no significant issues had been identified at this early stage.  A ‘light touch’ audit was being undertaken on the three subsidiary companies as they were not deemed to be ‘significant’ under auditing regulations.  If specific areas of concern were to arise during the course of the audit, additional work would be carried out.

 

On note 28 (related parties), Sally Ellis raised concerns about the increasing amount owed to the Council by the Local Health Board.  Whilst acknowledging the links between the two public bodies, she suggested that the issue could be referred to the Overview & Scrutiny function.  In providing background, the Chief Executive gave assurance that the matter had been raised with the Health Board and escalated to a high level.  Whilst there had been a reduction in the amount owed, he suggested that the Committee may wish him to write formally to raise the concerns as a cashflow and risk issue.  Sally Ellis spoke in support of this action.

 

The Chairman sought assurance that the Social & Health Care Overview & Scrutiny Committee was aware of the matter.  The Chief Executive said that whilst the Committee would be aware of the contributing factors, the concerns would be passed on to ensure continued monitoring.

 

The Chief Officer advised that the figure in the accounts reflected the position at that point in time, and that the current amount owed by the Health Board was £680K.  He said that the matter would be highlighted through the Audit Committee liaison group with Overview & Scrutiny Chairs.

 

On the Group accounts, Sally Ellis suggested that it would be helpful to include a summary of any significant areas of risk on the accounts of the three subsidiary companies, in particular any possible impact on the core accounts.

 

The Chief Executive gave assurance on Theatr Clwyd Productions Ltd as a trading company established to access tax relief and Newydd Catering & Cleaning Ltd in providing a continuing service which was operating well.

 

The Chief Officer explained that the legal structure of North East Wales (NEW) Homes  ...  view the full minutes text for item 16