Agenda item

To consider and approve the audited Statement of Accounts for 2020-2021.

Mr Steve Thompson, Director of Resources, presented the External Auditor’s Report to those Charged with Governance (ISA 260) and Statement of Accounts 2020/2021. He highlighted the delay that had been experienced in finalising the accounts due to a national issue relating to the accounting of infrastructure assets. A solution for this had been agreed by Parliament in November 2022 and this had allowed the External Auditor to complete the work on the 2020/2021 accounts. Mr Thompson also stated that the delay to the 2020/2021 accounts had caused a delay to the accounts for 2021/2022 and 2022/2023. It was planned that the 2021/2022 accounts would therefore be brought to the Committee by November 2023 and that the 2022/2023 accounts would be brought by the end of the current financial year.

Mr Stuart Kenny, External Auditor, Deloitte, informed the Committee that due to the solution agreed for accounting for infrastructure assets up to 85% of the 2020/2021 accounts had to be amended. Despite this however, it was not expected that there would be a material change to the Council’s financial position. He added that the value for money assessment would state that weaknesses had been identified around Children’s Services due to the outcome of the 2019 Ofsted review of Children’s Services.

The Committee noted that the level of “Unusable Reserves” had experienced a significant reduction compared to the previous year. Ms Karen Tomlinson, Corporate Finance Accountant, explained that the reduction was due to technical adjustments relating to valuations of the pension fund and property, plant and equipment. The Committee also noted that the level of creditors at 31^st March 2021 was significantly higher than the previous year due to the timeliness of creditor payments and the level of Covid grants received in advance.

The valuation of Blackpool Housing Company Ltd’s (BHC) housing stock was discussed with it being noted that the valuation had been undertaken by a BHC Senior Manager. Mr Kenny explained that although best practice was for an independent valuation to be sought, the external auditor had reviewed the valuation outcome and found it to be correct.

Members highlighted that the External Auditor had stated that the Council’s Internal Audit could not be relied upon in preparation of its audit of the accounts. Mr Kenny explained that this statement was required by the regulator and did not reflect Deloitte’s view of the Council’s Internal Audit Team. The regulator required Deloitte to undertake its audit without reference to an internal audit work that had been undertaken.

The Committee asked that in light of the additional work required to finalise the accounts that details of the external auditor’s fee be brought to a future meeting of the Committee.

It was noted that there remained a number of points of clarification that were needed before the accounts could be signed. The Committee therefore were requested to approve the accounts but asked, recognising the need to complete the accounts and move forward, that Mr Thompson await the clarification of these issues and consult with the Chair before signing the accounts.

Resolved: That

1. The Statement of Accounts 2020/2021 be approved, subject to clarification on the following points;

• A review of the updated Statement of Accounts to ensure all expected adjustments have been made;
• That the documentation of Infrastructure Assets has been completed; and
• A final review of the ISA 260 document to include the management response to Internal Risk and Control findings.

2. That subject to the above points being agreed with the Director of Resources after consultation with the Chair of the Committee, the Director of Resources be authorised to sign the Statement of Accounts for 2020/2021 as a true and fair view of the financial position of the Council and its income and expenditure for the year ended 31st March 2021.

3. That subject to (3) above the Chair of the Committee be approved in accordance with the Accounts and Audit Regulations (England) 2015, to certify that the Statement of Accounts have been approved by this Committee for the year ended 31st March 2021.

4. That details of the external auditor’s fees be brought to a future meeting of the Committee.