Agenda item

Committee received the report of the Head of Resources seeking Member approval for the 2011/12 audited Statement of Accounts to allow the completion of financial reporting for the last year.

The Head of Resources explained to Committee that the draft Accounts attached as Appendix A to the report had been produced in accordance with the requirements of the Accounts and Audit Regulations and had been externally and independently audited.  No significant audit adjustments had been identified.  A number of presentational changes had been agreed as a result of the audit.  The final version of the Financial Statements had been amended accordingly, and the financial outturn had been reported to Cabinet and Budget & Performance Panel.

Members were advised that the audit opinion would be issued, following approval of the Accounts and the forwarding of a copy of the letter of representation signed by the Section 151 Officer.  Conclusion of the audit would follow and the Accounts would be published by 30^th September 2012.

Committee then received the report of KPMG LLP, the Authority’s External Auditors.  The outcome of the external audit was set out in the formal report attached as Appendix B to the report.

Steve Clark, Director of KPMG LLP, thanked the Head of Resources and staff for the high standard of the Accounts and supporting working papers, which had assisted the delivery of an effective and efficient audit.

Richard Lee, Manager of KPMG LLP, advised that no material issues had been identified during the course of the audit.  KPMG had worked with officers throughout the municipal year to discuss specific risk areas and were satisfied that the Authority had appropriate arrangements in place to address them.  The key risk areas identified were reported as follows:

·         Savings Plans – the Authority had made significant savings following reductions in Local Government funding as a result of the Comprehensive Spending Review in 2010, and had robust procedures in place to deal with continued pressures;

·         Code Changes – the 2011/12 Local Government Accounting Code of Practice included a new requirement to carry ‘heritage assets’ at valuation, which included the mayoral silver;

·         Future of Lancaster Market – technical experts from KPMG’s Department for Professional Practice had provided advice and the options had been appraised to ensure that the Authority’s decision making was not ultra vires.

Committee was advised that reviews of the whole of the Government Accounts and any post balance sheet events would be undertaken following receipt of the signed letter of representation, and an unqualified audit opinion would be issued.

The Chairman thanked the Head of Resources, Steve Clark and Richard Lee of KPMG LLP, for their reports.

Members considered the details, and raised questions on the information reported, which were suitably answered.

It was proposed by Councillor Knight and seconded by Councillor Williamson:

“That the recommendations set out in the report be approved.”

Upon being put to the vote, Members voted unanimously in favour of the proposition, whereupon the Chairman declared the proposal to be clearly carried.

Resolved:

1.         That the report for 2011/12 issued by the Council’s External Auditors and the letter of representation to be signed by the Section 151 Officer be noted.

2.         That the audited Statement of Accounts for the financial year ended
31^st March 2012 be approved, signed and dated by the Chairman of Audit Committee.