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Consideration has been given to
Mazars’ Audit Completion Report 2020/21, including the
Council’s arrangements for securing economy, efficiency and
effectiveness.
The key messages
are:
• Audit Opinion –
Mazars anticipate issuing an unqualified opinion, without
modification, on the financial statements, including drawing
attention to the Valuer’s material uncertainty statement on
property, plant and equipment (PPE) as a result of
COVID-19.
• Identified misstatements
– the auditors’ work identified a number of
misstatements that have been
discussed with management. A summary of the identified
misstatements has been presented to the Committee.
• Value for Money –
Mazars anticipate having no significant weaknesses in arrangements
to report in relation to the arrangements that the Council has in
place to secure economy, efficiency and effectiveness in its use of
resources.
• Whole of Government
Accounts (WGA) – the timetable for the
Council’s
submission has not yet been
published. Audit work will commence once such instructions have
been received.
• Wider Powers – the
Local Audit and Accountability Act 2014 requires the auditor to
give an elector, or any other representative of the elector, the
opportunity to question them about the accounting record of the
Council and to consider any objection to the accounts. No questions
or objections have been received.
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 2020/21 the only material subsidiary was TGHC
due to the pension liability.
The Statement of Accounts is
materially consistent with the 2020/21 revenue and capital outturn
reports considered by Cabinet on 20 July 2021. Along with minor
adjustments and presentational changes, the following significant
findings and misstatements to the Statement submitted for audit on
30 June 2021 have been identified through the audit
process:
The significant findings,
internal control recommendations and a summary of misstatements
(adjusted and unadjusted) were set out in the executive summary in
Mazars Audit Completion Report.
None of the changes to the
Statement of Accounts impact on the revenue and capital outturn
positions reported to Cabinet, nor do they affect the position of
any usable reserves. Management have assessed the identified
unadjusted misstatement as not being material, either individually
or in aggregate to the financial statements, and does not plan to
adjust.
Mazars gave an update at the
meeting on issues raised within its Audit Completion
Report.
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