Agenda and minutes

The Chair informed the Committee that the meeting was being broadcast live on You Tube.

The recording of the meeting is available at:

https://www.youtube.com/user/WestNorfolkBC

The Democratic Services Officer conducted a roll call to confirm attendees.

An apology for absence was received from Councillor A Kemp.

To approve the minutes from the Audit Committee on 17 December 2020.

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The minutes of the meeting held on 17 December 2020 were agreed as a correct record.

Please indicate if there are any interests which should be declared.  A declaration of an interest should indicate the nature of the interest (if not already declared on the Register of Interests) and the agenda item to which it relates.  If a disclosable pecuniary interest is declared, the Member should withdraw from the room whilst the matter is discussed.

These declarations apply to all Members present, whether the Member is part of the meeting, attending to speak as a local Member on any item or simply observing the meeting from the public seating area.

There were no declarations of interest.

To consider any business which, by reason of special circumstances, the Chairman proposed to accept as urgent under Section 100(b)(4)(b) of the Local Government Act 1972.

There was no urgent business.

Members wishing to speak pursuant to Standing Order 34 should inform the Chair of their intention to do so and on what items they wish to be heard before a decision on that item is taken.

Councillors C Morley and J Rust were present under Standing Order 34.

There was no Chair’s correspondence.

Ernst and Young, the Council’s External Auditors will present the report.  The Committee are invited to note the content of the Audit Results Report produced by the Council’s External Auditors, Ernst Young.

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The Chair explained that getting to this point to approve the Statement of Accounts had been difficult for all involved and congratulated Borough Council officers and staff at Ernst and Young for their arduous attention to the matter which would be the ongoing position for further years.

Prior to presenting the Annual Audit Results Report, M Hodgson, Ernst and Young explained that he would draw attention the Committee’s attention to the key areas, messages, and observations.  Members were informed that it had been a difficult audit over a period of time, which had presented major issues as set out below:

·         Delay in the preparation of the financial statements

·         Valuation of plant and equipment.

·         King’s Lynn Innovation Centre:  the impact on accounts, financial statements, and value for money.

·         Impact of Covid and the Borough Council’s response to the national pandemic had reduced the capacity to deal with the audit and queries raised.

M Hodgson, presented the Audit Results Report for the year ended 31 March 2019 and External ISA 260 Report and highlighted the following key areas:

·         Changes in materiality – overall materiality assessment updated to £1.733m

·         Audit risks/findings for discussion.

·         Fraud or error – a good outcome no matters were identified to report good news story.

·         King’s Lynn Innovation Centre accounting treatment for Norfolk and Waveney Enterprise Services Loan - audit adjustment of £953,000k which had been revised in the Borough Council’s Financial Statement.

·         Methodology and assumptions used in the valuation of the King’s Lynn Innovation Centre building.

·         Valuation of Property, Plant and Equipment  - total adjustment of £20m required.

·         Going concern disclosure Note 38, page 100 in the Council’s Statement of Accounts.

·         New accounting standards IFRS 9 and IFRS 15.

·         Finance Team capacity.

·         Summary of adjusted differences.

·         Letter of Representation.

·         Value for Money – section 5 – King’s Lynn Innovation Centre/NWES loan.

·         Impact of Covid.

M Hodgson outlined the recommendations which the Borough Council should take seriously and advised that at the current time Ernst and Young did not need to use its statutory powers.  It was noted that the External Auditor’s Opinion would be finalised by 29 January 2021.

In response to question from Councillor Bambridge regarding a time limit being implemented on the value for money risks recommendation, Ernst and Young concurred that a time limit should be attached and implemented as soon as practicably possible and recognised that some of these would be set out as part of the action plan attached to the Internal Audit report.

Councillor Collingham commented that she had been a Member of the Audit Committee Cross Party Working Group set up to examine lessons learned report for the King’s Lynn Innovation Centre and had been concerned of the loss of the Chief Financial Officer and asked if the departure of the postholder had impacted on the relationship of the Borough Council and NWES.  In conclusion, Councillor Collingham asked if it was normal practice to risk assess the loss of  ...  view the full minutes text for item A106

The covering report for items 8 and 9 is attached from the Assistant Director, Resources.

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The Assistant Director Resources/Section 151 Officer presented the Borough Council’s Statement of Accounts 2018/2019 and explained that adjustments had been made as a result of Ernst Young’s review.  A training session had been held to which all Members were invited to attend, responses to the questions at the training session had been circulated to Councillors in attendance.

The Chair congratulated the Assistant Director, Resources/Section 151 Officer for a comprehensive document.

There were no questions from the Committee or Members attending under SO 34.

The Chair proposed an amendment to Recommendation 2, as set out below:

Delegate authority to the Assistant Director Resources/Section 151 Officer, in consultation with the Chair and Vice Chair of the Audit Committee, to make any further minor amendments necessary to the Statement of Accounts 2018/19 prior to publication and to report back any changes to the next Audit Committee.

The above amendment was agreed by the Committee.

RESOLVED:  The Committee:

1)            Approved the Statement of Accounts for the year ended 31 March 2019.

2)            Delegate authority to the Assistant Director Resources/Section 151 Officer, in consultation with the Chair and Vice Chair of the Audit Committee, to make any further minor amendments necessary to the Statement of Accounts 2018/19 prior to publication and to report back any changes to the next Audit Committee.

The Senior Policy and Performance Officer will present the report.

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The Senior Policy and Performance Officer presented the reported 2019 Annual Governance Statement which covered the financial year 2018/2019 and outlined the significant challenges local authorities now faced.

The Committee’s attention was drawn to the two amendments listed below:

·         At the request of Ernst Young, page 31 of the agenda 5.2.21 which included the loan to NWES.

·         Addition of Eastlaw to the list of contracted out services on page 63.

There were no questions from the Committee or Members attending Standing Order 34.

The Chair thanked the Senior Policy and Performance Officer for attending and presenting the report.

RESOLVED:  The Committee:

1)            Confirmed that the 2019 Annual Governance Statement (as attached) properly reflected the risk environment and that actions required to improve it were in hand.

2)            Approved the 2019 Annual Governance Statement (as attached) and confirmed that the Chair of the Audit Committee should sign it accordingly.

To note the Committee’s Work Programme.

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The Chair invited the Committee to submit any items for the future work programme.

The Chair advised that she had held a discussion with the Assistant Director Resources/Section 151 Officer and that a work programme for 2021/2022 would be presented to the next meeting

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The Cabinet Forward Decisions List was noted.

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The Chair explained that both the Member Major Projects Board and the Audit Committee Cross Party Working had been temporarily suspended as  some council staff had been redeployed in response to Covid.

To note that the date of the next meeting of the Audit Committee will take place on 15 March 2021.

The next meeting of the Audit Committee will take place on 15 March 2021 at 4.30 pm in the Remote Meeting Room Zoom.