Issue - meetings

That the Wales Audit Office Annual Audit Letter for 2018/19 be noted.

Matthew Edwards of Wales Audit Office (WAO) presented the Annual Audit Letter which set out the key messages arising from the Auditor General for Wales’ statutory responsibilities for the financial year 2018/19.

In confirming that the Council had met its responsibilities on financial reporting and use of resources, he said that work would continue with officers on preparations for a dry run of the earlier accounts deadline for 2019/20 in advance of the new statutory deadlines by 2020-21.  He also confirmed that the Council had appropriate arrangements to secure economy, efficiency and effectiveness in its use of resources.  On the WAO review of the financial sustainability of all councils in Wales, the draft report for Flintshire was due to be submitted to Council in February to take account of the Welsh Government Settlement and to moderate local findings with those across Wales to provide context.

In welcoming the findings, Allan Rainford asked about comparison with other similar sized councils.  Matthew Edwards said that the positive working relationship with Council officers was reflected in the effective arrangements for early closure of the accounts.  He said that there was an appetite to amend any material errors and referred to discussions on the future approach to misstatements above the reporting threshold.  On the financial sustainability review, he would feedback comments on the new model of the Chartered Institute of Public Finance and Accountancy (CIPFA).

The Chief Executive said that the WAO Engagement Director had reflected positively on the Council’s financial performance in the previous year and he referred to positive feedback from WAO on the Council’s Medium Term Financial Strategy which also provided reassurance.

The Corporate Finance Manager shared details of the self-assessment undertaken by all councils to contribute to the financial sustainability review.

In response to a question from Allan Rainford about the audit fee, Matthew Edwards said that a contingency element had been included for additional work such as that on the McCloud Judgement.  When asked about any impact from the anticipated increase in audit fees for councils in England, he said that a report on the WAO Audit Plan for 2020 - scheduled for the next meeting - would include proposals for the audit fee.  Whilst the Auditor General’s fees were on the increase due to various pressures, there were various ways of mitigating the impact to councils such as revising the skills mix of WAO teams.

The Chief Executive said that no significant impact was expected and that the Council’s approach to risk management could help to influence fees.  He spoke about the significant work with actuaries on the Clwyd Pension Fund to prepare and reduce risk on the McCloud Judgement.

RESOLVED:

That the Wales Audit Office Annual Audit Letter for 2018/19 be noted.