Documents:
- Report of the Head of
Finance
- Audit Wales –
Audit of Accounts Report
- Letter of
Representation
- Statement of Accounts
2019/20
- Annual Governance
Statement 2019/20
Discussion:
Overview
- The draft accounts
for Powys County Council and the Pension Fund had been signed off
on 15 June and audit work commenced shortly after
- The Covid 19 pandemic has had a significant impact and
the Welsh Government made provision for a delay. This has resulted in the Pension Fund Accounts
audit being delayed and a separate meeting of the Audit Committee
will be convened to agree those accounts in the next few
weeks.
- As usual, and in line
with improving scrutiny, the Committee undertook two seminars, one
on the draft statement of accounts and more recently on the final
accounts
- One misstatement
relating to a short-term debtor has remained as it is
managements’ view that this is appropriate
- Any other
misstatements identified have been amended
- An Emphasis of Matter
issue is identified with regard to the valuation of property assets
due to the position regarding the pandemic and property
values
- The statement of
accounts was advertised but no representations have been made by
members of the public
- The Authority
continued to take a project management approach to finalizing the
accounts to ensure year on year improvement
- In 2021, the accounts
are expected to be prepared in much shorter timescales –
draft accounts will be signed off by 31 May 2021 and the final
accounts by 30 July 2021
- The Committee was
asked to approve the sign off of the accounts by the Chair and S151
Officer and of the Annual Governance Statement by the Leader and
Chief Executive
Audit Wales
- Audit Wales noted the
unprecedented challenges during the year and recognised the
significant achievement in preparing the Statement of
Accounts. They thanked the S151
Officer, Policy and Reporting Accountant and the Finance Team for
their help and co-operation.
- The issue of
materiality was explained that the level at which misstatements was
set so that the reader of the accounts was not mislead. This level had been set at
£4.9M.
- Two potential
conflicts of interest and the safeguards put in place were
reconfirmed
- Work was
substantially complete and the Auditor General was due to issue his
opinion on 30 September 2020
- The main impacts of
the pandemic had been on the timetable, use of technology and
authorisation to use electronic signatures
- Audit Wales referred
to the delay with the Pension Fund accounts but that the audit had
now commenced
- It was noted that the
deadlines for submission of accounts for 2021 had been delayed in
England but there was no information regarding amending dates in
Wales
- Audit Wales
reiterated the misstatement as reported by the Head of Finance and
drew Members attention to key issues within the
document
- It was suggested that
a £4.9M level for misstatements gave considerable leeway
within the accounts. Audit Wales
acknowledged that this was a regular question, but the sum was in
line with that recommended by auditing and professional standards
and was only 1% of income and expenditure.
- The Committee asked
whether the number of misstatements was representative of the
levels of misstatements in other authorities – each audit was
different. The number of errors had
been higher than previous audits and complex adjustments were
needed but this could have been attributable to increased workloads
because of the pandemic and changes to personnel. It was an issue for the Head of Finance to
address.
- It was not
anticipated that there would be a significant, if any, change to
the fees charged as identified at the start of the
audit
- The Chair highlighted
that there were continuing overspends in some service areas and
that the Committee were keen to see budgets being kept under
control. The Head of Finance noted that
the budget had been predicated on scenarios which recognised
pressures and each service had been resourced on that position
where appropriate – the pandemic had raised additional
challenges. The Portfolio Holder
highlighted the importance of both Audit Committee and scrutiny
committees monitoring budgets.
Annual Governance
Statement
- The Corporate
Director, Resources and Transformation had lead work in preparing
the AGS
- Increased content and
a changed format were noted
- The report highlights
the activities, effectiveness and action points for the
Authority
- There has been
significant input by the Senior Leadership Team
- The impact of the
pandemic is also reflected within the document
- SWAP have not raised
any significant issues for inclusion
Letter of
Representation
Outcomes:
- The 2019-20
Statement of Accounts were approved and the Chair authorised to
formally sign the Statement of Accounts with the Section 151
Officer.
- The Statement of
Accounts be published as soon as possible but no later than 30
November 2020.
- The 2019-20 Annual
Governance Statement be approved for formal signing by The Leader
of the Council and the Chief Executive.
- The Annual
Governance Statement be published as soon as possible but no later
than 30 November 2020.
The Portfolio Holder for
Finance thanked Audit Wales and the Head of Finance and her team
for their work in completing the Statement of Accounts