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Shropshire Council
Shirehall
Abbey Foregate
Shrewsbury
Shropshire
SY2 6ND

Agenda and minutes

Audit Committee
Tuesday, 23rd July, 2019 1.30 pm

Venue: Bridgnorth Room, Shirehall, Abbey Foregate, Shrewsbury, Shropshire, SY2 6ND. View directions

Contact: Michelle Dulson  Committee Officer

Items
No. Item

26.

Apologies for Absence / Notification of Substitutes

Minutes:

            No apologies for absence were received.

27.

Disclosable Pecuniary Interests

Members are reminded that they must not participate in the discussion or voting on any matter in which they have a Disclosable Pecuniary Interest and should leave the room prior to the commencement of the debate.

Minutes:

27.1  The Chairman reminded Members that they must not participate in the discussion or voting on any matter in which they have a Disclosable Pecuniary Interest and should leave the room prior to the commencement of the debate.

28.

Public Questions

To receive any questions from the public, notice of which has been given in accordance with Procedure Rule 14.

 

Minutes:

28.1  No public questions had been received.

29.

Third line assurance: Findings Report Shropshire Council 2018/19 pdf icon PDF 95 KB

The report of the Engagement Lead is to follow.

Contact: Richard Percival (0121) 232 5434

 

Additional documents:

Minutes:

29.1  The Director of Finance, Governance and Assurance (Section 151 Officer) introduced his report – copy attached to the signed Minutes – which set out the amendments made to the 2018/19 Statement of Accounts following an audit by the Council’s External Auditors, Grant Thornton.  The Director of Finance, Governance and Assurance (Section 151 Officer) went on to explain the changes made to the Statement of Accounts as a result of the McCloud Judgement.

 

29.2  The Committee received the report of the External Auditor – copy attached to the signed Minutes – which summarised the key matters arising from the audit of Shropshire Council’s financial statements for the year ending 31 March 2019.  The report also set out the value for money conclusion for the Council.

 

29.3  The Engagement Lead explained that in light of the McCloud judgement a revised actuarial assessment had been requested to consider the impact on the Pension Liability, however this did not affect the General Fund balance.  Turning to the valuation of Property, Plant and Equipment, the Engagement Lead reported that they had almost completed this part of the audit however as it had not been revalued, there was a clear risk that things may have changed.  This work was expected to be completed by the end of the week.

 

29.4  The Engagement Lead informed the Committee that in relation to the JPUT, which was a complex accounting arrangement, there was a disagreement between the Council and External Audit about how to treat £1.5m.  He reported that the value of the three shopping centres had decreased by £11m year on year.  A full valuation report had been received the previous week and the External Audit Valuers had been asked to check it.  This was expected to be completed in the next couple of days.

 

29.5  In response to concerns that the valuation would not be complete when the Statement of Accounts was presented to Council later that week, the Director of Finance Governance and Assurance (Section 151 Officer) explained that this was due to the faster close down of the accounts, and although Full Council had been arranged as late as possible there was always a risk that the audit would not be completed in time as work would continue up until 31 July, however the Director of Finance, Governance and Assurance (Section 151 Officer) had delegated authority to make any necessary adjustments.  In reality however, the Statement of Accounts stood up on their own and External Audit did not expect any adjustments to be required in relation to the JPUT.

 

29.6  In response to a query in relation to the McCloud judgement, the Director of Finance Governance and Assurance (Section 151 Officer) explained that a technical adjustment had been made in this year’s accounts but that it would not become an issue until the full actuarial valuation was undertaken and so would impact next year’s accounts.

 

29.7  Turning to the Value for Money Conclusion, the Engagement Lead drew attention to the key risks in the  ...  view the full minutes text for item 29.

30.

Date and Time of Next Meeting

The next meeting of the Audit Committee will be held on the 12 September 2019 at 1:30pm.

Minutes:

30.1  RESOLVED: That it be noted that the next scheduled meeting be held on Thursday 12 September 2019 at 1.30 pm.

 

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