The report of the Engagement Lead is attached.

Contact: Grant Patterson (0121) 232 5296

The Committee received the report of the Executive Director of Resources (Section 151 Officer) - copy attached to the signed Minutes – which provided for the final approval of the Statement of Accounts for 2021/22, following completion of the audit of the accounts.  The Committee also received the report of the Engagement Lead - copy attached to the signed Minutes – which set out the Audit Findings for 2021/22.

The External Audit Senior Manager summarised the report and highlighted the key points.  She reported that the audit was now substantially complete with the outstanding issues being detailed on page 3 of the report and she provided an update on two of the issues.  One was a query regarding the gross internal area of the waste transfer site and although they had received a verbal response from the valuer further supporting documents had been requested.  Turning to the cash flow amendments, the External Audit Senior Manager confirmed that they had concluded their work in this area which related to 2022/23, 2022/21 and 2020/21. 

She informed the Committee that the scope of the audit had not changed and that the significant risks outlined at the planning stage had remained the same (and were detailed on pages 7-14 of the report) as had the levels of materiality (£9m for the group, £8.9m for the Council).  She then took Members through the key findings including two material adjustments to the financial statements, which although significant in value had no impact on the level of the general fund balances.  One was in relation to infrastructure which resulted in an £148m increase in property, plant and equipment balances (details of which were set out on pages 13 and 36 of the report). The second adjustment was in relation to the net Pensions Fund liability following publication of the triannual valuation the Council obtained an updated valuation which led to an increase of £29.1m in the net pension liability.

The External Audit Senior Manager drew attention to two unadjusted misstatements (set out on page 35 of the report) and although above the trivial threshold of £445,000, they were not material and did not impact upon the proposed opinion however it was requested that they be included in the letter of representation.  A number of recommendations had been made (set out in Appendix A) and an unqualified opinion would be issued.

In response to a query the Key Audit Partner explained that he hoped to bring a draft Annual Auditors report to the next meeting which would look at value for money and the medium-term financial strategy etc.

RESOLVED:

1.   to approve the 2021/22 Statement of Accounts and that the Chairman of the Audit Committee sign them (in accordance with the requirements of the Accounts and Audit Regulations 2015).

2.   to agree that the Executive Director of Resources be authorised to make any minor adjustments to the Statement of Accounts prior to publication of the audited Statement of Accounts.

3.    to agree that the Executive Director of Resources and the Chairman of the Audit Committee sign the letter of representation in relation to the financial statements on behalf of the Council and send to the External Auditor.

4.    to note the contents of the Audit Findings report for 2021/22.

It was agreed to take Agenda Items 16 (Statement of Accounts 2022/23) and 18 (External Audit: Shropshire Council Audit Findings (Information) 2022/23) together.