To receive any apologies for absence.  

Apologies for the inability to attend the meeting were received from Cllr Smith and Cllr Saunders (Lead Member for Finance).

To receive any declarations of interest.

There were no declarations of interest received.

To approve the Part I minutes of the meeting held on 12 June 2018.

The Part I minutes of the meeting held on 12 June 2018 were approved as a true and correct record.

(Cllr Brimacombe provided the clerk with a couple of typing amendments prior to the meeting).

To consider the report.

The IAS260 report and the Audited Accounts report were considered together.

Duncan Laird, KPMG, introduced the IAS260 report that summarised the key findings in relation to 2017-18 external audit at the Royal Borough of Windsor an Maidenhead and the Berkshire Pension Fund.  The report covered work, which was completed by KPMG on the Authority’s significant risk areas, other areas of the financial statements, and the control environment in place to support the production of financial statements.

The Panel were informed that there had been no significant issues found with the council’s organisational control environment.  KPMG found that the controls over the majority of the key financial systems were sound and no recommendations were made. Work to fully implement the recommendations raised in 2016/17 ISA260 report were still ongoing.

With regards to Financial Statements the Panel were informed that KPMG expected to issue an unqualified audit opinion on the Council’s financial statements and value for money before the deadline of 31 July 2018. 

KPMG also anticipate issuing an unqualified audit opinion on the Pension Fund’s financial statements by 31 July 2018. There was a risk that the assumptions and methodology used in the valuation of the pension obligation were not reasonable and therefore the information sent to the actuary was reviewed.  Following the review KPMG were satisfied that the assumptions applied were reasonable and that the methodology used by the actuary to calculate the pension liability was appropriate.  KPMG were also satisfied with the assumptions and valuation of the longevity hedge.  

Cllr Brimacombe mentioned that it was good to see an unqualified audit opinion and that KPMG had reported that they had not identified any matters that would require them to issue a public interest report.

Cllr Brimacombe asked for clarification on what PPE stood for and was informed that this was the valuation of the authorities property, plant and equipment.  Cllr Brimacombe said he was happy with the valuation methodology used however as this was subjective and given the transfer of land as part of regeneration projects he felt that it was important that the new auditors paid particular attention to PPE.

Cllr E Wilson said that PPE in local authorities was difficult to value as there were the buildings and equipment owned by the council and the commercial assets run by the RBWM Property Company.  It would be a challenge for the new auditors to focus and explain the difference to the public.

Cllr E Wilson asked what the approach had been to auditing the  RBWM Property Company.  The Panel was informed that there had been a limited approach this year as at the end of March there were only £2million of assets with the company.  There would be a greater focus as more assets were transferred. 

Cllr D Wilson asked if all aspects of the property portfolio were looked at and was informed that KPMG only audited property that had been revalued during the audited year.  Cllr D Wilson mentioned that the value of land owned by the  ...  view the full minutes text for item 39.

To consider the report.

The Panel considered the audited accounts during their discussion on the ISA260 2017/18 report.

Resolved unanimously: that the Audit and Performance Review Panel notes the report and approved the audited accounts, a copy of which is then signed by the Chairman before the 31st July 2018.