Agenda item

To submit the statutory financial statements for 2015/16.

a)         To submit the revised statutory financial statements by the Head of Finance for the Committee’s approval (attached)

b)(i)     To submit the formal “ISA 260” report to “those charged with governance” by external auditors Deloitte on behalf of the Auditor General for Wales on the 2015/16 Statement of Accounts for Gwynedd Council  (attached)                  

b)(ii)    To authorise the Committee Chairman and the Head of Finance to sign the “letter of representation” on behalf of the Audit Committee, which is charged with governance in relation to approving the statutory financial statements for Gwynedd Council (copy to follow as Appendix 1 to the report of the external auditors Deloitte on behalf of the Auditor General for Wales in (b)(i) above)

c)(i)     To submit the formal “ISA 260” report to “those charged with governance” by the external auditors Deloitte on behalf of the Auditor General for Wales on the 2015/16 Statement of Accounts for the Pension Fund (attached)                                       

c)(ii)    To authorise the Committee Chairman and the Head of Finance to sign the “letter of representation” on behalf of the Audit Committee, which is charged with governance in relation to approving the statutory financial statements for the Pension Fund (copy to follow as Appendix 1 to the report of the external auditors Deloitte on behalf of the Auditor General for Wales in (c)(i) above)

i)       Statement of the Accounts

         The Head of Finance Department submitted the revised statutory financial statements for approval by the committee. He noted that the reports from Deloitte on behalf of the Wales Audit Office noted the main changes to the accounts since the pre-audit version had been submitted to the Committee meeting of 14 July.

ii)      Report of the Appointed Auditor on the Audit of Financial Statements

a)      The Council’s Accounts

         In accordance with the Annual Audit procedure, namely the Appointed Auditor’s report for those charged with governance, the report by Deloitte on behalf of the Auditor General for Wales was submitted by Ian Howse, Financial Audit Engagement Leader, Deloitte.

         It was reported that the audit work had been completed and that the Auditor General intended to issue an unqualified audit report on Gwynedd Council’s accounts for 2015/16.

         The following main observations were noted:

·         That one uncorrected misstatement in relation to misclassification of cash received had been found but, as it was a matter of timing which did not change the financial position, the auditors had been willing for it not to be corrected;

·         That there was one misstatement that had been corrected to their satisfaction;

·         There were no matters which required attention highlighted by the audit team in relation to the significant risks tested;

·         That the accounts were exceptional and he conveyed his thanks to the accounts team for their work and the quality of the accounts which facilitated their work of auditing them.

In response to an enquiry by a member regarding the corrected misstatement in relation to the misclassification of equal pay provision, the Head of Finance Department noted that it was a technical accounting matter which was corrected to reflect the use of the money.

b)      Gwynedd Pension Fund Accounts

The Financial Audit Engagement Leader, Deloitte noted that the Auditor General intended to issue an unqualified audit opinion on the accounts of the Gwynedd Pension Fund for 2015/16.

The following main observations were noted:

·         In relation to uncorrected misstatements, in relation to investment valuations - property, that it was a matter of opinion, therefore, they were willing for it not to be corrected as it was not a material consideration;

·         That one uncorrected misstatement in relation to misclassification of cash received had been found but, as it was a matter of timing which did not change the financial position, the auditors had been willing for it not to be corrected;

·         There were no matters which required attention highlighted by the audit team in relation to the significant risks tested;

·         That the Pension Fund accounts were very complex and that they were excellent accounts.

Members expressed their appreciation of the work of officers in preparing the accounts.

The Head of the Finance Department expressed his appreciation of the auditors' co-operation.

RESOLVED that the Audit Committee, with the power delegated by the Council to be “those charged with governance” in relation to approving the statutory financial statements and the relevant audit, approves the amended statutory financial statements, accepts the related reports by Deloitte on behalf of the Auditor General for Wales, and authorises the Head of Finance Department and Chairman of the Committee to sign the "letters of representation" and to submit them to the Auditor General for Wales.