Issue - meetings

To receive a report from Grant Thornton summarising their findings following an audit of the 2018/19 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 2018/19 financial accounts.

The Associate Director from Grant Thornton stated that their report served two purposes, one was to provide a summary of their key findings and the other was to bring together their conclusions on the Council’s wider responsibilities. She wanted to put on record her appreciation to the Deputy Chief Executive (S151) and his team for their support and co-operation during the audit.

The following was highlighted within their report:

·         No adjustments had been requested which had affected the final reported position, however, there had been some minor issues with the disclosure of the financial instruments and group accounts.

·         There were a couple of final items that they needed to receive one being the Letter of Representation following this meeting and a letter of assurance from the Devon Pension Fund. A ‘subsequent events review’ also needed to be undertaken to check whether this affected the final reported position on the balance sheet ending 31 March 2019.

·         A recent Court of Appeal decision was brought to the attention of the Committee in relation to a legal ruling around age discrimination for pension funds. However it was the Council’s view that the impact of this ruling was not significant for Mid Devon District Council but would be considered for future years’ actuarial valuations. Grant Thornton agreed that at this stage the impact did not appear ‘material’.

·         The action plan included some minor recommendations in relation to the coding of some income and the consolidation process used with regard to the Group Accounts.

·         With regard to ‘Value For Money’ the external auditors had identified two significant risks, one around the Medium Term Financial Plan and the lack of clarity from central government and the second around risks in relation to 3 Rivers. They had been aware that the internal auditors had undertaken a review in this area and were comfortable that the arrangements in place to mitigate risks were adequate. However, the point was made that with the increasing level of activity in this area there needed to be clear linkages with the Council and its Treasury Management Strategy.

It was Grant Thornton’s intention, subject to outstanding queries being resolved, to issue an unqualified opinion on the Council’s financial statements. In relation to the ‘Value for Money’ (VFM) opinion it was stated that they were satisfied that the Council had proper arrangements in place for securing economy, efficiency and effectiveness in its use of resources, except for the matter they had identified in respect of Group Governance. It was their intention therefore to propose a qualified ‘except for’ conclusion in relation to VFM.

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