Agenda item

To consider a report of the Assistant Director (Finance).

Consideration was given to a report of the Assistant Director (Finance), highlighting the key matters arising from Grant Thornton’s audit of the 2016/17 financial statements of both Tameside MBC and Greater Manchester Pension Fund, which Grant Thornton was required to report under the Audit Commission’s Code of Audit Practice and the International Standard of Auditing.

It was reported that the statutory deadline for the production and publication of the draft 2016/17 statement of accounts was 30 June 2017, with sign off by 30 September 2017.  However, for the 2017/18 financial year the statutory deadlines would be brought forward to 31 May 2018 and 31 July 2018.  The 2016/17 process was therefore brought forward to these dates in preparation for the new tighter timescales so that lessons could be learned prior to the accelerated process coming into effect.  It was confirmed that efficiencies would be embedded into the closure process for 2017/18 to achieve the earlier statutory publishing deadlines.

This was the fifth year that Grant Thornton had audited the accounts and there had been significant changes in the reporting requirements.  It had been a challenging year to close the accounts as the finance team continued to reduce in size following a service review.  In addition, there had been substantial legislative changes to the core financial statements and key prior year re-statements.  Despite these challenges the process had been completed within the statutory timescales and the accounts continued to be prepared to a high degree of accuracy and reliability.  The auditors had been very positive about the overall quality of the accounts and they had commented on the high level of support given by Council Officers.

A number of adjustments and presentational changes were recommended in the report prepared by Grant Thornton.  The key changes related to the correction of the value of operating expenses and an amendment to property revaluations.  Members were advised that none of the amendments altered the reported surplus on the Council’s General Fund Balance and had no impact on the Council’s overall financial position.

Appended to the report were two letters of representation; one for Tameside MBC and one for the Greater Manchester Pension Fund.  Following confirmation from the Panel that the Council had complied with all matters set out in the letters, a signed version would be forwarded to the External Auditor.

Members were informed of a requirement that the auditor provided a value for money conclusion.  The key findings of the review, as included in Section 3 at Appendix 1, were as follows:

“Grant Thornton has determined that except for the matters they have identified in respect of the Ofsted inspection of Children’s Services, the Council had proper arrangements in all specific aspects.  Grant Thornton therefore proposes to issue a ‘qualified except for’ value for money conclusion stating that the Council has proper arrangements for challenging how it secures economy, efficiency and effectiveness in its use of resources.”

The Council had again been awarded green (the most positive outcome) in all categories.  This demonstrated that the Council was well placed to deal with the financial challenges that it was faced with.

The report concluded that this outcome was extremely positive within the current financial environment.  This reemphasised that the authority had the support of officers, Members, internal and external audit in ensuring that strong financial management continued.

RESOLVED:

(i)        That the content of the report be noted;

(ii)       That the positive relationship with the audit team and successful progress of the audit be noted;

(iii)      That the adjustments and presentational changes to the accounts be agreed;

(iv)      That the value for money conclusion be noted; and

(v)       That the Council had complied with all matters set out in the Letter of Representation and that a signed copy be forwarded to the External Auditor.