Agenda item
Statement of Accounts 2012-13 and External Auditor report
The Council’s external auditors, KPMG, produce the report following completion of the audit of accounts. This report is intended to identify any changes to the accounts, unadjusted mis-statements or material weaknesses in controls identified during the audit work. It also provides the overall value for money conclusion for the year. A separate ISA260 has been produced for the Pension Fund accounts and this will also be considered by the Pension Fund Sub-Committee.
Minutes:
Members considered a report on the Statement of Accounts for 2012-2013, produced by the Council’s external auditors, KPMG, following completion of the audit of accounts. The report identified changes to the accounts, unadjusted mis-statements or material weaknesses in controls identified during the audit work and also provided the overall value for money conclusion for the year.
In introducing the report, Phil Johnstone, Director of KPMG stated that the audit of the financial statements identified one material adjustment within Property, Plant and Equipment and three non-trivial adjustments, none of which affected the Authority’s financial position. The Authority also made a small number of trivial adjustments, most of which were of a presentational nature and for completeness, the details of the non-trivial audit differences had been included in Appendix 1. Phil Johnstone placed on record that the Authority had good processes in place for the production of the financial statements, officers dealt efficiently with audit queries enabling the audit process to be completed within the planned timescales. He also paid credit to KPMG for building good relationship with officers in discussing specific risk areas and addressing issues appropriately. Members heard that the Authority’s organisation and IT control environment was effective, controls over the key financial systems were sound and that internal audit were compliant with the Code of Practice for Internal Audit in Local Government. Phil Johnstone informed the Committee that KPMG anticipated issuing an unqualified audit opinion by 30 September 2013 and also reported that the wording of the Council’s Annual Governance Statement accorded with KPMG understanding
Phil Johnstone added that although the financial statements were substantially complete, a signed management representation letter would be required before KPMG can issue an opinion. He confirmed that KPMG had complied with requirements on objectivity and independence in relation to this year’s audit of the Authority’s financial statements and would conclude that the Authority had made proper arrangements to secure economy, efficiency and effectiveness in its use of resources. KPMG therefore anticipated issuing an unqualified value for money (VFM) conclusion by 30 September 2013 subject to consideration of any objection to the financial statements.
Phil Johnstone reported that the audit could not be closed until the Whole of Government Accounts (WGA) return had been completed. The deadline for the completion of the WGA was later than the accounts themselves and was due by 4 October 2013.
Stephen Lucas of KPMG informed members that they anticipated issuing an unqualified audit opinion in relation to the Pension Fund’s financial statements, as contained both in the Authority’s Statement of Accounts and the Pension Fund Annual Report by 30 September 2013. He added that the Authority had good processes in place for the production of the Fund’s financial statements, sound controls over the Fund’s key financial systems and adequate supporting working papers. He continued that officers also dealt efficiently with audit queries resulting in the audit process being completed within planned timescales.
In highlighting the main areas in the accounts, Mick Bowden, Deputy Director drew members attention to the 2012-13 outturn table that showed that the overall target of £12million of non-earmarked reserves had been achieved and that areas of over-spend including looked after children had been contained. He continued that over the year contributions for Section 106 agreements had added a sum of £1.7million although there were specific requirements as regards its use. Members heard that the move to the civic centre and the associated transitional costs would impact upon long term planned reserves. The Deputy Director added that although cash flow into the Pension Fund was positive there were challenges ahead.
In welcoming the report, members were united in expressing their appreciation to the Deputy Director and his team of officers for the excellent work they had done and as amplified by the external auditors.
RESOLVED:
(i) that the adjustments made to the accounts and referred to in the reports from the Deputy Director of Finance be noted;
(ii) that the letters of representation to the Audit Commission be approved;
(iii) that the annual statement of accounts be approved.
Supporting documents:
- 2013-09-17-Statement of Accounts report, item 5. PDF 77 KB
- Brent ISA 260 - Charged with governance, item 5. PDF 248 KB
- BRENT PF ISA 260 Charged with governance, item 5. PDF 170 KB
- Annual Accounts 2012-13 - Revised, item 5. PDF 2 MB