Agenda item

To consider a report by the Director for Digital, Sustainability and Resources, copies attached as item 6.

Before the Committee was a report from the Director for Digital, Sustainability and Resources, copies of which had been circulated to all Members and copies are attached to the signed copy of these Minutes as Item 6.

The Committee was informed that the audits of Adur District Council’s and Worthing Borough Council’s 2019/20 Statements of Accounts were complete. The External Auditor’s Audit Results Report, contained the External Auditor’s recommendations and the “Key Message” section of their report summarised the findings arising from their audit.

At the time of publication, there were no qualification issues to report. The 2019/20 financial statements had been adjusted in respect of the External Auditor’s findings as at 13th November 2020.

The report sought approval of the two sets of amended Statements of Accounts for the financial year ended 31st March 2020 and the letters of representation which were attached as appendix 2.

The Committee was advised that unfortunately the audit of the accounts would not be concluded by 24 November when the accounts were due to be signed off.

Principally, this was to do with the additional due diligence work that the auditors were undertaking with respect to the valuation of property, and in particular, investment properties. This work was being undertaken by a small specialist unit within EY and they were struggling with the volume of work. This was a national issue and not confined to Adur and Worthing Councils.

The implications of this delay were that Officers may need to do a late adjustment to the accounts depending on the outcome of the valuation review.

The deadline for the audit of the accounts was the 30th November although there were arrangements that could be put into place if the audit work was delayed. At the moment the auditors were endeavouring to complete the audits by 30th November but had suggested that depending on when the internal review of asset values was concluded, this may slip into early December.

To address the problem of a potential late amendment to the accounts, the Chief Financial Officer suggested that a delegation was put into place to allow for the Chairmen to approve the accounts as follows:

"approve the statement of accounts at appendix 1 for financial year ended 31st March 2020 whilst noting the situation with the auditors and that the accounts are not finalised at this stage. And delegating authority to the Joint Chairmen, in consultation with the s151 Officer to receive any amendments to the accounts, consider them, and approve them on behalf of JGC, whilst reporting back to JGC on any amendments at the next meeting in January 2021".

Members sought clarification regarding the ordering of the reports on the agenda, the order of wording and signatures on the letters of representation, the process for applying for Dr Chesters Charity funding and which site the GBMet Loan had been secured against.

The recommendations, as amended, were proposed by Councillor Kevin Boram, seconded by Councillor Hazel Thorpe and supported by the Committee.

Resolved

That the Joint Governance Committee

      I.         approved the statement of accounts at appendix 1 for financial year ended 31st March 2020 whilst noting the situation with the auditors and that the accounts are not finalised at this stage. And delegating authority to the Joint Chairmen, in consultation with the s151 Officer to receive any amendments to the accounts, consider them, and approve them on behalf of JGC, whilst reporting back to JGC on any amendments at the next meeting in January 2021;

     II.         agreed the letters of representation at appendix 2 which would be signed electronically by the Joint Chairmen of the Joint Governance Committee;

   III.         approved the revised Annual Governance Statements included in the Statement of Accounts; and

   IV.         noted the changes in use of reserves referenced in section 4.2 of the report.