Agenda item

The Committee considered the Final Accounts 2016/17 - Lessons learned update. The details were set out in the report.

In the ensuing debate, the following principal points were raised:

·         In response to a query about the impact of the new approach to the valuation of Property, Plant and Equipment on workloads, Jenni Morris, Finance Manager explained that the advantage of undertaking a full valuation on a particular asset was that it provided an opportunity to cover every aspect of that particular asset. The previous approach of valuing 20% of each asset class meant that the remaining 80% would need to be considered for comparison purposes. Therefore although the new approach would lead to peaks in the workload, overall there would be less work involved. John Gregory from Grant Thornton confirmed that the new approach was consistent with the CIPFA Code of Practice and he welcomed the Council's approach to de-cluttering its transactions

·         Sue Alexander, the Interim Chief Financial Officer indicated that the next time the Committee met in July, it would be to consider the full accounts. However a lot of work would need to take place between now and then. Grant Thornton would return to review the work undertaken to date on 9 April and again on 29 May

·         The progress being made on preparing the Accounts was welcomed however an assurance was requested that the Senior Leadership Team (SLT) had had oversight of the process. Sue Alexander responded that the Lessons Learned report had been reviewed by SLT. SLT had also received regular updates. In addition, the Cabinet Member with Responsibility for Finance had been kept informed of progress

·         John Gregory commented that it was clear that the production of the Council's Accounts was higher up the Council's agenda than this time last year. Many of the issues that arose last year had been or were being addressed this year. There still remained progress to be made. The majority of the issues to date had arisen due to issues associated with the new finance system which was to be expected. It was important that the Council provided the necessary information to allow the external auditor to undertake their testing of the Accounts and he welcomed the planned contingency audit arrangements in April. Overall he was cautiously optimistic about the progress of the accounts to date

·         The Chairman thanked Sue Alexander for her professional approach in producing an honest appraisal of the work to date during this challenging period. He was content with the progress made so far particularly the improved leadership and pre-planned activity. He welcomed the regular meetings that were taking place with Liberata as he recognised that the biggest risk to the Council was obtaining information off the finance system in the appropriate format. Although good progress was being made, there remained significant hurdles to overcome

·         Sue Alexander commented that ensuring all the necessary information was available for Grant Thornton's next visit on 9 April was the next key stage of the publication of the Accounts. Jenni Morris added that a lot of work had been undertaken with colleagues in Liberata and IT to ensure that reporting systems produced the right information in advance of the testing by Grant Thornton

·         Although considerable progress had been made, concern was expressed about the tightness of the timescale for the publication of the Accounts this year and in particular the ability of Liberata to respond to the Council's demands. What assurances had been received from Liberata and would the Council be compensated for any costs? Sue Alexander advised that she was working very closely with colleagues in Liberata on a daily basis and had been encouraged by their positive response. She had also been in contact with their external auditor. 

RESOLVED that:

a)    The Lessons Learned update report be noted;

b)    The review of the technical accounting policies be noted; and

c)    The Chairman and Vice Chairman of the Committee be provided with regular updates on any issues that may arise with the closing of the 2017/18 accounts.