Agenda item

Report FSD14061

The Committee received the Council’s 2013/14 statutory accounts in accordance with the requirements of the Accounts and Audit (England) Regulations 2011. Janet Dawson of PricewaterhouseCoopers LLP (PwC), the Council’s external auditors, attended the meeting to respond to questions from the Committee. She confirmed that they expected to sign the opinion on the accounts in the next few days. She also reported that she expected to be able to conclude on the objection raised to the 2012/13 accounts in relation to the parking enforcement contract by the end of October.

Ms Dawson highlighted to the Committee that the Value for Money (VFM) risk rating had been increased from normal to significant to reflect the increasing pressures and significant budget gap identified in the Council’s medium term financial strategy. This took account of the requirement to consider the financial resilience of the Authority into the foreseeable future and the definition of foreseeable future being expanded by the Audit Commission to include the medium term (i.e. 3 to 5 years) rather than the next 12 months. This was not unusual to Bromley and a similar approach was being taken with other PwC clients. Ms Dawson was satisfied that the Council had a financial planning process in place and had identified this risk, so she was able to give an unqualified VFM opinion for the 2013/14 accounts, but the risk should continue to be assessed and monitored. Members agreed that there was an increased risk, and noted that as the Council had already made considerable efficiency savings it was becoming increasingly difficult to set a balanced budget. The Chairman asked whether auditors had seen any good examples of achieving value for money elsewhere that could be applied to Bromley; Ms Dawson responded, as an observation rather than a recommendation, that they had observed an increase in a move towards joint contracts and shared services although it was too early to comment whether these had been successful.

A Member asked whether PwC monitored service standards and the use of Council assets such as buildings. Ms Dawson responded that they did consider external inspection reports and regulator’s assessments as part of their work on VFM as well as reviewing the information contained within the Annual Governance Statement, and where necessary would discuss how these impacted on financial performance with management. They did not look at individual buildings, but did consider the overall asset portfolio and asset management plan. 

The Chairman thanked Ms Dawson for attending and for her report.

RESOLVED that

(1) The Council’s statutory accounts for 2013/14 be approved.

(2) In accordance with the requirements of the Accounts and Audit (England) Regulations 2011, following approval, the Chairman of this Committee shall sign and date the statutory statements on page 1 as a formal record of the Committee’s approval.

(3) The external auditors’ report be noted.

(4) Agreement with the auditors’ conclusion on their independence and objectivity is confirmed.

(5) The Chairman of this Committee be authorised to sign the letter of representation for 2013/14 on behalf of the Council.

(6) The Annual Governance Statement which accompanies the statutory statement of accounts be approved.