This report sets out RBWM’s Audited Statement of Accounts for 2019/20, the External Auditors’ report on their audit, the ISA260, the management responses to the matters raised in the External Auditors’ report and the Letter of Representation signed by the Borough.

The Committee is asked to note the audited signed accounts for the financial year 2019/20, approve the audited Statement of Accounts and approve the management responses to the matters raised in the External Auditors’ report.

The Committee considered the report setting out RBWM’s Audited Statement of Accounts for 2019/20, the External Auditors’ report on their audit, the ISA260, the management responses to the matters raised in the External Auditors’ report and the Letter of Representation signed by the Borough.

Andrew Vallance, Head of Finance advised the Committee that the accounts had been signed off in Adele Taylor’s final week at the Council noting that they had been previously delayed due to series of objections. He reassured the Committee that it was not uncommon for local authorities to have their accounts signed off a year or two after the year concluded with nationally over 1000 sets of accounts that are late. He was pleased to report that none of the objections were found to have any major substance to them, but it took a long time to be concluded. Benjamin Sheriff from Deloitte was in attendance to answer questions on the objections or the process and Martin Stevens, RBWM’s Technical Accountant was also present.

Councillor Bond enquired on the status of the subsequent three years’ worth of accounts that were backed up behind this set and the timescale for their conclusion. He noted that Deloitte were planning to leave the local authority audit market and wondered if this would impact on their progress. He highlighted a reference at paragraph 4.5 of the report which referred to an unreconciled amount of £1million, an indication that this was not material and sought clarification on what that related to.

Andrew Vallance advised that a set of accounts for the recently concluded financial year of 2022/23 would be available within the next few weeks. He noted that due to limited resources it had not been possible to meet the 31^st May deadline but an unaudited set of accounts would be available to be reviewed shortly.

In relation to 2020/21 and 2021/22 accounts, Benjamin Sheriff of Deloitte advised the meeting that a significant amount of work had already been completed but there were a number of queries that were still being worked through with RBWM’s management team. The target to have those accounts signed off was September 2023 before moving on to considering 2022/23. He confirmed that Deloitte were contracted to conclude the audit of the 2022/23 accounts and they remained committed to delivering that.

Martin Stevens, Technical Accountant, explained that with reference to paragraph 4.5 of the report the Committee should consider the volume of transactions every year and explained that not all of them would be clear. He advised that previously the team could not identify where the income related to, but this had been resolved in the 2020/21 accounts whilst remaining unreconciled in the accounts within the report.

Councillor Wilson sought clarification on whether the amount related to a large number of small transactions or one large value transaction. Information would be circulated to the Committee after the meeting to clarify this point. 

Andrew Vallance added that RBWM do have new auditors, Grant Thornton, appointed for the financial year 2023-24 onwards. He would meet with them every quarter and they would begin attending the Committee in a year’s time once Deloitte had made progress with the accounts. He confirmed he would keep them updated throughout the year.

The Chair asked about the movement in the valuation of fixed assets and assets under construction and what they were. Martin Stevens confirmed that he would provide the information to the Committee on the detail of the question. He advised that the Council had an annual capital programme and when assets were not completed then they stay as assets in construction before transferring across but he could provide a listing as at March 2020. Andrew Vallance advised that due to this timing it was highly likely to relate to Braywick Leisure Centre.

The Chair confirmed with the committee that there were no questions relating to the management responses as set out in the report.

RESOLVED UNANIMOUSLY that

i)               the report be noted;

ii)             the audited signed accounts for the financial year 2019/20 be noted;

iii)            the audited Statement of Accounts be approved; and

iv)            the management responses to the matters raised in the External Auditors’ report be approved.