Agenda item

A report was received to provide the Committee with an opportunity to ask any questions regarding the unaudited Statement of Accounts prior to external audit and public inspection.

M Thomas outlined that there were potentially two material adjustments that would need to be made to the opening balance sheet on 1 April 2018 which were not currently reflected in the unaudited Statement of Accounts. 

The material adjustments were currently being discussed with the external auditors and, once finally determined, would be incorporated into the audited Statement of Accounts as a Prior Period Adjustment prior to the Accounts being presented to the next Audit and Standards Committee meeting on 11 July, and subsequently being formally adopted by the MCA at its meeting on 29 July. 

Members asked a series of questions relating to the two material adjustments with detailed answers provided to them by M Thomas. 

Councillor Furness referred to economic development.  He asked if the creation of 70,000 new dwellings by 2024 was linked to the new dwellings figure set out in Local Plans published by all the local authorities. 

D Smith replied that the figure was part of the original Strategic Economic Plan developed in 2014.  The figure was estimated on the number of new houses as a direct consequence of specific areas of growth from across the City Region.  At this time it was not linked to Local Plans.  The figure would be revised to take account of Local Plans in the new Strategic Economic Plan currently being developed.  It was anticipated that the new Strategic Economic Plan would be published during the autumn of 2019. 

In response to a question from A Marshall, M Thomas informed the Committee how the accounts had been prepared on the basis that the Authority was a going concern. 

R Jarvis asked why the Balance Sheet showed a large movement in Short Term Debtors, from £6m as at 31 March 2018 to £29m as at 31 March 2019. 

M Thomas referred Members to note 24 ‘Short Term Debtors’ in the Accounts.  It was noted that included within other debtors was £15m due form JESSICA, which had now been received during May 2019. 

R Jarvis queried why there was no movement year-on-year in relation to the non-current assets value. 

M Thomas agreed to investigate and provide a response after today’s meeting.  ACTION: M Thomas

A Marshall referred to Annex A of the report (‘The Governance Framework’).  She asked if officers were confident that the language used in paragraph 2.2 ‘Contract Procurement Rules’ and paragraph 2.7 ‘Capital Programme’, was appropriate, given that the audit reports in these areas had received limited assurance. 

In addition, A Marshall referred to paragraph 2.17 of the report, which stated that, ‘the Audit and Standards Committee terms of reference have been reviewed in year and an action plan is in place to maximise the value of the Committee adds to the SCR’.  A Marshall stated that she wasn’t aware that the Committee’s terms of reference had been reviewed and queried whether the ‘action plan’ was actually the Committee’s work plan. 

R Adams explained that the Contract Procurement audit report was currently in draft format.  The audit of Contract Procurement had received a limited assurance opinion, which was currently being challenged by management.  The Capital audit report had been carried out to look at the South Yorkshire Transport Capital Programme, which was not part of the Local Growth Fund. 

In relation to the Committee’s action plan, it was confirmed that this should have been titled as the Committee’s work plan. 

S Clark reported that, in relation to the Pension Liability, there was currently an ongoing legal case (McCloud v Ministry of Justice) which was due to have a Supreme Court Hearing later in June.  The outcome of the case may have a potential impact on every individual Local Government Pension Scheme in the country.  It was highlighted that Pension Actuaries may need to re-calculate pension costs which would require a disclosure note to be added to the Statement of Accounts. 

On behalf of the Committee, Councillor Jones asked if key aspects of the Statement of Accounts could be presented to the Committee in future years. 

M Thomas acknowledged the request. 

RESOLVED – That the Audit and Standards Committee noted the unaudited Statement of Accounts 2018/19.