To considered the WAO Audit Plans for both Powys County Council and the Pension Fund.
Minutes:
Documents:
· Audit Wales – Audit Plans Powys County Council and Pension Fund 2019/20
Discussion:
· There has been an unprecedented impact from Covid 19 which has had an impact on both Audit Wales and the Authority’s ability to compete the audit
· The Auditor General is keen to ensure the safety and wellbeing of staff in all organisations - Audit Wales staff continue to work from home
· Work is continuing wherever possible and links are being maintained with the Authority
· Both documents identify key risks
· In preparing its financial statements the Council is required to comply with the full CIPFA Code
· Work is ongoing with the Authority to ensure planned performance audit work supports the Council. There may be changes to the planned programme, but this will be in consultation with the Authority.
· The report into the Financial Sustainability study that was completed during the year is being finalised. Longer-term sustainability will also be considered as part of the study planned in the coming months and the scope of this study is likely to be developed in consultation with the Welsh Treasurers’ Group.
· A revised timetable for the scrutiny study is being discussed
· [PP1]
· The Audit Fee is below that for the previous year as there is less work on grants certification
· The Audit Wales team is largely the same – Members’ attention was drawn to two potential, perceived conflicts of interest and how this would be addressed
· The Committee’s attention was also drawn to the regulations and requirements in the Appendices to the report
· Audit Wales were asked if there would be a major change in the level of sampling to be undertaken. As Covid 19 occurred late in the financial year and the Council’s accounts payables and receivables systems continued to operate no significant risk associated with the pandemic as no material expenditure had been made during the last two weeks of the financial year. Sampling may increase in estimates, accounts payable and receivable. The risk factor will stay the same.
· Audit Wales would not comment on political decisions but would consider the challenges the Authority may face regarding sustainability. A national study is to be undertaken.
· Business support grants were made in line with criteria although some payments were made before the funding had been received. Cash management has been carefully monitored over the period.
· A Member asked if there had been an increase in risk due to the speed of change witnessed throughout the pandemic. As mentioned previously, the pandemic occurred late in the financial year so there would not be a significant increase in risk in relation to the 2019-20 accounts.
· The Annual Governance Statement may be amended to reflect the control environment in place during the period up to and including the sign-off of the accounts. It is likely that reference will be made to the decision-making framework.
· Could the Actuary’s Report be considered by Audit Committee – the report would be considered by the Pensions and Investment Committee but would be circulated to Audit Committee for information.
· A further query was raised regarding the All Wales Investment Pool and how that was reflected in the Authority’s accounts. The Joint Partnership will provide financial statements. During 2018/19, the Authority had invested £72M with the Partnership and in 2019/20 a further £37M was invested. Audit Wales will audit the joint committee accounts and will provide assurance regarding the level of investments to the Powys Council audit team. Volatility in the markets was noted and Audit Wales will look at the evidence which supports valuations.
Outcomes:
· The Audit Plans for Powys County Council and the Pension Fund were noted
[PP1]Not sure what this comment was in relation to? But I think it is covered in the bullet point below where we’d consider the financial challenges facing the Councl
Supporting documents: