Agenda item

Audit Results Report 2020-2021 - Kettering Borough Council

Minutes:

The circulated report of the Assistant Director of Finance and Strategy was received for the Audit Results Report 2020/2021 for Kettering Borough Council.

 

Appended to the report was the draft ISA 260 Report in relation to the Statement of Accounts for Kettering Borough Council for 2020/2021 and also the Council’s draft Management Representation Letter to Ernst & Young.

 

The purpose of the report was to present the draft ISA 260 Report in relation to the Statement of Accounts for Kettering Borough Council for 2020/2021 to those charged with Governance. This had been prepared by the Council’s External Auditor (Ernst & Young); and also to agree that the approval of the Council’s draft Management Representation Letter be delegated to the Executive Director of Finance (s151 Officer), in consultation with the Chair of the Audit and Governance Committee.

 

The report recommended the Committee to approve the Provisional Audit Results Report (draft ISA 260) and the Council’s draft Management Representation Letter.

 

The reason for the recommendation is that it is a statutory requirement for the Council to approve the ISA 260. In accordance with the Council’s constitution the Audit and Governance Committee are required to undertake this function.

 

Neil Harris (Ernst & Young - External Auditor) presented the report which set out the audit results in the audit plan and currently proposes an unqualified audit report and consider the Statement of Accounts to be a true and fair view for the year ending 31 March 2021, with no significant weaknesses. He remarked on the substantial progress that had been made and thanked officers for their cooperation.

 

In relation to the audits a Councillor asked if there are any concerns which may arise in the future for the new authority. Neil Harris confirmed that Ernst & Young had agreed with the National Audit Office that three months after all the audits of the former Councils have been completed any matters will be consolidated and reported.

 

The Councillor then asked for confirmation from Ernst & Young that there were no matters of concern arising from Kettering Borough Council’s Audit for 2020/2021. Neil Harris confirmed that there were no significant weaknesses to report.

 

Neil Harris referred members to the report and the areas that were outstanding, some of which were national issues. He briefed members, giving them a thorough explanation of the matters and the timescale when he expected to receive conclusions from specialists involved. These included the IAS 19 Report and net pension disclosures, the updated Going Concern Disclosure note for North Northamptonshire Council and property asset valuations. Members considered the report and appendices and raised a number of questions arising from the outstanding matters and Neil Harris responded to questions of clarification.

 

Members noted the content of the Letter of Representation to Ernst & Young, which gives the opportunity for the Council to explain any uncorrected differences.

 

The Chair stated that he was very encouraged to have reached this stage and thanked officers for getting to this point. He commented that it was not an easy task to be running so many audits and year end accounts preparation at the same time. In his opinion he considered the audit to be clean with minor points as potential emphasis of matter. He considered there to be sufficient assurance in relation to the asset valuation and the pension matters were in a controlled environment and a national issue to be resolved.

 

There were two recommendations in the report. The Chair requested that these be voted on separately.

 

The recommendation contained in the report to receive the Provisional Audit Results Report to those charged with Governance and approve the draft Management Representation Letter was duly MOVED by Councillor Ian Jelley and SECONDED by Councillor Richard Levell. On being put to the vote this was carried.

 

RESOLVED that:-

 

(i)        The Audit and Governance Committee receive the Provisional Audit Results Report to those charged with Governance and approve the draft Management Representation Letter.

 

The recommendation contained in the report to delegate any adjustments to the draft Management Representation Letter to the Council’s Executive Director of Finance (s151 Officer), in consultation with the Chair of the Audit and Governance Committee was duly MOVED by Councillor Richard Levell and SECONDED by Councillor Ian Jelley. On being put to the vote this was carried.

 

RESOLVED that:-

 

(ii)       The Audit and Governance Committee delegate any adjustments to the draft Management Representation Letter to the Council’s Executive Director of Finance (s151 Officer), in consultation with the Chair of the Audit and Governance Committee.

 

 

Supporting documents: