Agenda item

The Council will receive a presentation and report from the External Auditor summarising the key issues identified during the audit of the Financial Statements for the year ended 31^st March, 2020 for the Authority and on the assessment of the Authority’s arrangements to secure Value for Money.

RECOMMENDED TO COUNCIL:-

(i)            That the External Auditor’s (ISA 260) Report 2019/20 be approved;

(ii)          That the findings on the effectiveness of the Council’s internal controls and the conclusions on the Council’s arrangements for securing Value for Money be noted; and

(iii)            That the findings from the audit work in relation to the 2019/20 financial statements be noted.

Mr G Mills (Engagement Lead) representing Grant Thornton, the Authority’s External Auditor, made a presentation on the ISA 260 report 2019/20, the report to those charged with Governance.

Mr Mills outlined the roles and responsibilities of the External Auditor with specific reference to the work undertaken in relation to the Accounts, the Use of Resources and Value for Money conclusion as well as explaining how this role was undertaken.  He also referred to the revised timescales involved and the reasons for this revision.

The following points were noted:

·         In relation to the findings in the 2019/20 accounts

o   An unqualified ‘clean’ audit opinion was expected to be issued

o   Regular liaison had been undertaken with the Finance Team and wider Management Team

o   Good working papers had been provided and feedback sessions had been held

o   No major weaknesses in the financial systems had been identified

o   There were no audit adjustments impacting on useable reserves

o   A small number of other audit adjustments and presentational amendments had been suggested. 

o   The key accounting matters related to the valuation of the Council’s land and buildings and accounting for the Council’s share of the South Yorkshire Pension Fund

·         In relation to the Key findings in 2019/20 in respect of Value for Money

o   Risk assessment had identified two areas of focus relating to the financial standing of the Council and the arrangements in place for the Glassworks development

o   There was an unqualified ‘clean’ conclusion on the Use of Resources/Value for Money conclusion and a good outcome for the Council based on positive findings with regard to:

§  The delivery of the 2019-20 budget and savings

§  The 2020-21 budget, reserves level and updated Medium Term Financial Strategy

§  The impact of Covid-19 being managed, no emergency budget or Section 114 Certificate being required

§  Governance and Risk Management arrangements for the Glassworks

§  The financial impact of the Glassworks being significantly de-risked

o   Key challenges for the Council remained particularly in relation to the ongoing financial environment for all Councils and the continued need to maintain strong governance, risk management and financial management of the Glassworks scheme

The External Auditors also recorded their thanks for the work for the Service Director Finance, for staff within the Finance Directorate and within Internal Audit, for SMT and all other staff who had contributed to ensuring that the Council received an unqualified opinion.

In response to questioning, Mr Mills indicated that, as summarised within the ISA 260 report, both Covid-19 and the implications of Brexit raised significant challenges that the Council would have to manage.  From an External Auditor’s point of view, however, the Authority was in a better position to be able to deal with those combined challenges than many other authorities particularly in view of the relatively healthy financial position that the Council had entered the 2020/21 financial year.  The General Reserves had been strengthened so that there were now approximately £30m of reserves and he was satisfied with the arrangements that the Council currently had in place to deal with such challenges.

Councillor Sir Steve Houghton CBE (Leader of the Council) also placed on record thanks and appreciation for the work of the External Auditors for the way in which the audit had been conducted, to the Director of Finance and his Team and to the Senior Management Team and to all officers and Councillors involved in the process.  He commented that Barnsley had not always, and still wasn’t, the best funded.  Members had been required to take difficult decisions to keep both the Council and Services on track and this approach would continue going forward, with appropriate direction and leadership.

The Council then considered the External Auditors Audit Findings (ISA 260) report for the Council for 2019/20 and this was:

Moved by Councillor Gardiner – Seconded by Councillor Franklin; and

RESOLVED:-

(i)            That the External Auditor’s (ISA 260) Report 2019/20 be approved;

(ii)          That the findings on the effectiveness of the Council’s internal controls and the conclusions on the Council’s arrangements for securing Value for Money be noted; and

(iii)            That the findings from the audit work in relation to the 2019/20 financial statements be noted.