Agenda and draft minutes

Accounts Committee - Monday, 2nd November, 2020 4.00 pm

Venue: This is a virtual meeting. Please click here to access the meeting.

Contact: Mike Aynsley email: 

No. Item


Minutes pdf icon PDF 80 KB

The Committee is asked to approve as a correct record the minutes of its last meeting held on 26 July 2019.


The minutes of the last meeting of the Committee held on 26 July 2019 were approved as a correct record and signed by the Chair.



Audit Completion Report Year Ended 31 March 2020 and Gateshead Council Statement of Accounts 2019/20 pdf icon PDF 164 KB

Report of the Strategic Director, Resources and Digital

Additional documents:


Consideration has been given to Mazars’ Audit Completion Report 2019/20,

including the Council’s arrangements for securing economy, efficiency and



The 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 resources.


The report also includes a Letter of Representation to Mazars to be approved by the Committee prior to being signed by the Strategic Director,

Resources and Digital following the issue of the audit opinion.


To 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.


The 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



Significant Findings:

        Significant risk of management override of controls – no issues.

        Significant risk of revenue recognition – no issues.

        Significant risk of defined benefit liability valuations – subject to the completion of outstanding work. Assurance awaited from the Pension        Fund auditor EY.

        Significant risk property, plant and equipment valuation – attention to         be drawn to material valuation uncertainty disclosure as a ‘emphasis         of matter’. Following audit findings, the Statement of Accounts have          been 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.

        Significant risk valuation of short and long-term debtors – subject to           outstanding work.

        Enhanced risk valuation of long-term investments – no issues.


Unadjusted Misstatements:

        Changes to the Insurance Provision – being an overstatement         specific to one individual insurance claim.

        Reclassification of short-term to long-term debtors.


Adjusted Misstatements:


A number of adjustments have been made between the draft accounts and the final accounts. These are:


        Comprehensive Income and Expenditure Statement (CIES) –          reanalysis of the deficit recognised on the investment in Newcastle Airport.

        Bad Debt Provision – correction of over provision for council tax and          business rates.

        CIES: correction of group income and expenditure.

        Property, Plant and Equipment – amendments to the valuation of the         Council’s shared waste facility, and amendments to the valuations of         primary and special schools.


Disclosure Amendments:


A number of presentational and disclosure errors have been amended.


None of the changes to the Statement of Accounts impact on the revenue and capital outturn positions reported to  ...  view the full minutes text for item 2.