Issue - meetings

To receive a report from Grant Thornton summarising their findings following an audit of the 2017/18 financial accounts.

The Committee had before it, and NOTED, a report * from Grant Thornton summarising their findings following an audit of Mid Devon District Council’s 2017/18 financial accounts.

Subject to outstanding queries being resolved the external auditors anticipated issuing an unqualified audit opinion following this meeting. Outstanding issues included:

·         Conclusion of the ongoing review of the classification of the Premier Inn lease.

·         Completion of the Whole of Government Accounts review.

·         Receipt of confirmation from the District Valuer regarding qualifications and independence as well as the appropriateness of the 35% social housing factor.

·         Receipt of the Letter of Representation.

·         Final review of the financial statements.

The Value for Money opinion was expected to be unqualified and would be concluded that afternoon.

Consideration was given to the categorisation of leased land to third parties which was complex and needed thorough review. The external auditors were satisfied that the Council had categorised the lease of the land to the Premier Inn correctly but this had involved detailed work and the analysis of legal documents. It was recognised that as councils continued to exercise their powers in this area it would be an ongoing piece of work for external auditors as part of their annual audit.

It was confirmed that the items listed in the action plan would be tracked, followed up and monitored by the Leadership Team and Finance. The Audit Committee was the also the correct forum to keep a close eye on the issues identified.

The Committee wished to pass on its thanks to Grant Thornton for the complex work they had undertaken on behalf of the Committee.

The Cabinet Member for Finance also wished for his thanks to be passed on the Finance team. He stated that he hoped all Members would get involved with the budget setting process for next year. It was also quite right to be raising questions regarding 3 Rivers Development Ltd and that through analysis be made before the Council invested in anything to ensure minimum risk.

The Chairman stated that he would be personally writing to each member of the finance team to thank them for their hard work and efforts in creating a finalised set of accounts.

Note: * Report previously circulated; copy attached to the minutes.