Agenda item

Report FSD17066

The Committee considered a report setting out the Council’s 2016/17 statutory accounts for approval by Members in accordance with the requirements of the Accounts and Audit Regulations 2015.  The report also detailed the conclusions and significant issues arising from the work carried out in relation to the audit of the 2016/17 accounts.

The Committee were advised that the Council’s accounts and related records were made available for public inspection for 30 working days between 3^rd July 2017 and 11^th August 2017.  This was a requirement of the Regulations and had to take place prior to the completion of the audit.  An elector in the Bromley borough had raised two objections to the 2016/17 accounts:

·  Waste Management and Street Cleansing Services;

·  Trade Waste Collection Service.

Although the objections had no bearing on the accuracy of the accounts, the audit could not be formally concluded and an audit certificate issued until they had been resolved.

Philip Johnstone and James Seegar of KPMG, the Council’s external auditors, attended the meeting to answer questions from the Committee. A Member commented that it appeared that smaller, local accountancy firms were being excluded from being able to bid for this work. Officers confirmed that there was a tendering exercise undertaken by Public Sector Audit Appointments Ltd (PSAA) and Mr Johnstone added that smaller firms did not usually meet the specified criteria to be included on the register of approved auditors. 

Members questioned the auditors about the process of considering the objections. This was a long process involving discussions with the objector and the relevant Council departments – Mr Johnstone confirmed that the objections had not yet been formally accepted. There were a range of actions open to him as the auditor, which could include bringing in specialist expertise if necessary. He also confirmed that the objections had not been made solely on the basis of Internal Audit reports and that there were other matters he needed to consider.

The Committee considered the Auditor’s formal recommendation about setting up a separate Pension Fund Bank Account. Officers confirmed that a cost/benefit analysis had previously been undertaken and details presented to Audit Sub-Committee.  Mr Johnstone confirmed that no issues had been identified during the audit and, while required to raise the issue, the Auditors accepted the Council’s position. 

A Member commented on the payment of £258k to a senior officer who had left the Council. It was confirmed that this would most likely include the costs of early release of pension and was not solely related to a redundancy payment. The authority to agree redundancies had previously been delegated to the Chief Executive in consultation with the Leader.

Members raised the issue of Journal Posting. The Auditors recommended a monthly process be put in place for a sample of journals to be checked to see that they are correct. Officers responded that they were not aware of any priority one recommendations relating to this issue, but undertook to discuss this recommendation with Internal Audit. A Member requested that this matter be referred to Audit Sub-Committee for consideration.

RESOLVED that

(a)  The Council’s statutory accounts for 2016/17 be approved;

(b)  In accordance with the requirements of the Accounts and Audit Regulations 2015, 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;

(c)  The external auditor’s report be noted;

(d)  The auditor’s conclusion on VFM be noted;

(e)  Agreement with the auditor’s conclusion on their independence and objectivity be confirmed;

(f)  The objections to the accounts as set out in the report be noted;

(g)  The Chairman of this Committee be authorised to sign the letter of representation for 2016/17 on behalf of the Council as set out in Appendix 2 of report FSD17066; and

(h)  The Annual Governance Statement accompanying the statutory statement of accounts be approved.