Agenda item

Report of the Chief Finance Officer (This report was marked to follow and was published on Tuesday 8^th June 2021)

The Chief Finance Officer (CFO) presented a report on the Statement of Accounts 2019/20 and 2020/2 which provided the Committee with an updated position regarding the conclusion of the 2019/20 audit of the Statement of Accounts and details of progress in the preparation of the Statement of Accounts for the year ended 31st March 2021.

It was reported that the requirements and timelines for the approval of a Local Authority’s Statement of Accounts had changed due to the impact of the COVID-19 pandemic. In accordance with the amended Regulations, the draft Statement for Accounts for 2019/20 was required to be published on the Council’s website and submitted for audit by 31^st August 2020 rather than 31^st May 2020 and the timeline for the conclusion of the audit was 30^th November 2020 rather than 31^st July 2020.

The Statement of Accounts for 2020/21 was required to be published on the Council’s website and submitted for audit by 31^st July 2021 rather than 31^st May 2020 and the timeline for the conclusion of the audit 30^th September 2020 rather than 31^st July 2020.

The Committee was advised that Councillor Training on the Statement of Accounts had taken place over two sessions on the 27^th August and the 25^th November 2020.

Due to the COVID-19 pandemic, the external auditors had, on advice, withdrawn from Lancaster Town Hall in mid-March 2020. Audit planning and preliminary statement of accounts testing had resumed in December 2020 but was halted in January and February 2021 to allow officers to focus on delivering the Council’s budgets. Audit work had progressed throughout March and April 2021 but was currently on hold whilst the External Auditors applied resources to deliver their NHS commitments.

It was reported that the audit was substantially completed. Two issues were above the External Auditors materiality threshold. These issues related to the Walney Substation backdated income and the valuation of Giant Axe Stadium. The final accounts had been adjusted to reflect this.

The CFO corrected para 3.6 of his report to clarify to the Committee that 2 local residents had submitted objections to the Council’s 2019/20 financial statements to the external auditor, both are currently progressing though the appropriate procedure.

The External Auditor had considered the objections in accordance with the National Audit Office’s Audit Guidance and had formally written to one of the objectors stating the grounds for not considering the objection. The External Auditor advised the Committee that he had since had a reply stating that the objector objected to the External Auditors reply.

The Committee asked questions about the valuation of Giant Axe Stadium and whether the same could apply to any other Council properties, such as the parks. The CFO advised that would be checked but given the uniqueness of the asset it was expected to be an isolated issue.

Resolved:

(1)            That the progress in the following areas be noted;

1. The audit of the Statement of Accounts for the year ended 31st March 2020 and the matters arising to date.

2. The preparation of the Statement of Accounts for the year ended 31st March 2021.