Consideration has been given to Mazars’ Audit Completion
including the Council’s arrangements for securing economy,
report’s key messages are:
• Audit Opinion:
Mazars anticipate issuing an unqualified opinion on the Statement of Accounts, meaning that it is free
from material error and has been
prepared in accordance with proper practice. This includes drawing attention to
the Valuer’s material uncertainty statement of
property, plant and equipment (PPE).
• Value for
Money: The Council has proper arrangements in place to secure
economy, efficiency and effectiveness in its use of
report also includes a Letter of Representation to Mazars to be
approved by the Committee prior to being signed by the Strategic
Resources and Digital following the issue of the audit
provide a full picture of the economic and financial activities of
the Council and its exposure to risk, the accounting statements of
material subsidiaries and associate companies were consolidated
with those of the Council. In 2019/20 the only material subsidiary
was TGHC due to the pension liability.
Statement of Accounts is materially consistent with the 2019/20
revenue and capital outturn reports considered by Cabinet on 23
June 2020. Along with minor adjustments and presentational changes,
the following significant findings and misstatements to the
Statement submitted for audit on 7 July 2020 have been identified
through the audit
risk of management override of controls – no
risk of revenue recognition – no issues.
risk of defined benefit liability valuations – subject to the
completion of outstanding work. Assurance awaited from the Pension
risk property, plant and equipment valuation – attention to
drawn to material valuation uncertainty disclosure as a
matter’. Following audit findings, the Statement of Accounts
amended in relation to the Council’s shared waste facility,
and the current valuation
of primary and special schools. Assurance work remains ongoing in
relation to the findings.
risk valuation of short and long-term debtors – subject to
• Enhanced risk
valuation of long-term investments – no issues.
• Changes to the
Insurance Provision – being an overstatement specific to
one individual insurance claim.
Reclassification of short-term to long-term debtors.
A number of adjustments have been made between the draft accounts and the
final accounts. These are:
Income and Expenditure Statement (CIES) –
reanalysis of the deficit recognised on the investment in Newcastle
• Bad Debt
Provision – correction of over provision for council tax and
correction of group income and expenditure.
Plant and Equipment – amendments to the valuation of the
Council’s shared waste facility, and amendments to the
valuations of primary and
A number of presentational and disclosure errors have been
None of the changes to the Statement of Accounts impact on the
revenue and capital outturn positions reported to ...
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