Agenda item

Report of the Executive Director of Corporate Resources and Customer Services

The Committee considered the report of the Executive Director of Corporate Resources and Customer Services on the final audited 2020/2021 Statement of Accounts, including the Annual Governance Statement, for consideration and approval.  In addition, the proposed “Letter of Representation” letter from Sefton to Ernst & Young LLP (EY) was attached for approval.

The report indicated that the deadline for publication had been 30 September 2021. However, the regulations allowed for a delay in publication where the audit had not yet been completed. The report explained that there had been a delay in completing the audit for 2020/2021, but as the audit was now largely complete, the Statement of Accounts was presented for approval.

The Statement of Accounts 2020/201 provided information about the Authority’s finances in respect of the cost of the Authority’s services and what the Authority’s assets and liabilities were at the end of the year.

The report provided details of the Comprehensive Income and Expenditure Statement; the Movement in Reserves Statement, the Balance Sheet; Cash Flow Statement; Notes to the Financial Statements – Expenditure and Funding Analysis; Other Notes to the Financial Statements; the Collection Fund; Group Accounts; the Annual Governance Statement and the Report of the Independent External Auditors (Ernst and Young (EY) LLP.

The EY audit had focused on the following areas with no significant issues having been found:

·       Misstatements due to fraud or error (Fraud Risk).

·       Risk of fraud in revenue and expenditure recognition (Fraud Risk).

·       Valuation of pension fund assets and liabilities in the Local Government Pension Scheme (Significant Risk).

·       Valuation of land and buildings (Significant Risk).

·       New Central Government Grants and other Covid-19 funding streams (Significant Risk).

·       Investments and Subsidiaries (Inherent Risk).

·       Going Concern (Inherent Risk).

The EY report indicated that the areas of the audit still to be completed were:

·       Valuation of land and buildings;

·       completion of our internal consultation process on our audit assessment and review of the Council's proposed going concern disclosures;

·       •final quality review procedures by the engagement partner and quality reviewer;

·       review of the final version of the financial statements;

·       completion of subsequent events review; and

·       receipt of the signed management representation letter and accounts.

The report indicated that an update report detailing any changes made to the Statement of Accounts from that presented to this Committee, would be presented to Audit and Governance Committee scheduled to take place on 16 March 2022.

The Executive Director of Corporate Resources and Customer Services advised the Committee of the intention to seek approval from Council to procure external audit services through the Public Sector Audit Appointments body and that this would be presented at Budget Council for decision.

The Executive Director of Corporate Resources and Customer Services, and a representative from Ernst and Young, presented the report and answered questions thereon.

A Member requested that subject to any amendments being made to the Letter of Representation following completion of the outstanding audit areas, then a copy of the amended letter be shared with Members.  The Executive Director of Corporate Resources and Customer Services indicated that any changes to the letter following completion of the audit would be shared with Audit and Governance Committee members prior to it being signed by himself and the Chair.

RESOLVED: That