Issue - meetings

The Corporate Director of Finance and Assets submitted a report with the statement of accounts for 2019/20 for approval and providing an update on the audit.  The Chair thanked Darren Stevens, Finance Manager, Mick Bowden, the Corporate Director of Finance and Assets, Paul Smith, Head of Finance, the Finance Team and the External Auditors for their work in producing the audited accounts during Covid-19.

Paul Smith, on behalf of the Corporate Director of Finance and Assets, introduced the report after which Mr Barrie Morris (Grant Thornton) and Ms Sophie Morgan-Bower (Grant Thornton) summarised the key details. Members were asked in particular to note the work plan attached as part of Appendix One that should have come to the Committee earlier in the year but had been omitted owing to the pandemic and other reasons.

Following their presentation of the report, the Head of Finance Manager, Sam Mowbray (Chief Operating Officer), Mr Barrie Morris (Grant Thornton) and Ms Sophie Morgan-Bower (Grant Thornton) responded to specific queries and observations regarding the accounts from Councillors James Robbins, Kevin Small.

1)      What was the implication of the different policies of CIPFA and Grant Thornton on reporting the Direct Schools Grant deficit significant? This was just brought to Members’ attention.

2)      Could the Council make up the deficit from its general fund? Yes, if there was a surplus, which was not the current position.

3)      Could there be more details about the issues with the Council’s Oracle system.  No fraud had been uncovered but the report was recommending improvements to ensure these were avoided. Sam Mowbray offered to send a separate briefing to Members via the Committee Officer.

Given the on-going pandemic, it was confirmed that any formal signing of accounts or documents could be undertaken through the Council’s secure e-signature system.

Resolved: (1) To note that the Committee had considered the external auditor’s report, set out in Appendix 1

(2) That the statement of accounts, set out in Appendix 2, be approved.

(3) That the letter of representation, set out in Appendix 3, be approved.

(Report to follow)

The Corporate Director of Finance and Assets introduced the item and explained that the audit of the Statement of Accounts was not yet completed because of the Covid-19 pandemic; however, the Government had moved the deadline for completion to the end of November 2020.

Barrie Morris and Sophie Morgan-Bower from the External Auditors summarised the work being undertaken and noted that Swindon Borough Council was among the first to have submitted draft accounts for audit. In response to a question raised earlier in the meeting, Mr Morris also outlined the actions Grant Thornton was taking to ensure that the external audit process remained up to date, effective, and of a high quality.

The Chair along with Councillor Kevin Small asked a range of questions to which the External Auditors responded at the meeting, covering:

1)   The cost and time-scale for the additional scrutiny by the external auditors,

2)   The timeline for bringing the Accounts to the Committee, and

3)   Any indications of how councils might be audited for the way they disbursed government grants during the Covid-19 pandemic.

Resolved - That the Corporate Director of Finance and Assets, in consultation with the Chair and the External Auditors, be requested to schedule a special meeting of the Audit Committee in late September/October 2020 for the sole purpose of considering the Statement of Accounts 2019/20.