Agenda item

To consider Grant Thornton’s Audit Letter 2015/16. 

33.1           Attention was drawn to Grant Thornton’s Annual Audit Letter 2015/16, circulated at Pages No. 35-47, which summarised the key findings from the work that had been carried out at Tewkesbury Borough Council for the year ended 31 March 2016.  Members were asked to consider the Annual Audit Letter 2015/16.

33.2           The Audit Manager from Grant Thornton explained that the findings arising from the audit of the Council’s financial statements had been reported to the Audit Committee meeting on 21 September 2016 and an unqualified opinion had subsequently been issued.  Grant Thornton had established a positive and constructive relationship with the Finance team and senior management which it was hoped would continue going forward. The risks which had been reviewed as part of the process were set out at Pages No. 40-41 and Page No. 42 confirmed the unqualified opinion on the accounts which had been submitted in advance of the national deadline of 30 September.  It was noted that two issues, regarding receipts in advance and suspense journals, had been identified as a result of interim work in February/March 2016 and both matters had already been addressed by the Finance team.  In terms of the value for money conclusion, Grant Thornton had been satisfied in all respects that the Council had put in place proper arrangements to secure economy, efficiency and effectiveness in its use of resources for the year ending 31 March 2016.  One key value for money risk had been identified and was referenced at Page No. 44.  Members were informed that this was likely to continue to be a risk in 2016/17 given the pressure on local government finances and other local pressures.  Page No. 45 of the report outlined the areas which Grant Thornton had worked on with the Council during the year and what was intended for 2016/17 – it was noted that the main focus would be the early closure of the accounts.  The audit fees for the work carried out were set out at Appendix A to the report along with the dates when Grant Thornton’s reports had been issued. 

33.3           In response to a query regarding the 2% increase in Council Tax, referenced within the information regarding the value for money risk which had been identified, the Audit Manager from Grant Thornton explained that this was a suggested increase included within the Medium Term Financial Strategy proposals to help cover the shortfall in the budget.  This was not set in stone but was one of the options which could be considered to alleviate financial pressure.  The Member raised concern that the tense of the report was confusing as it implied Council Tax was yet to be raised for 2016/17 and confirmation was provided that the wording reflected the arrangements in place as at 2015/16.

33.4           A Member requested further clarification regarding the external auditors’ involvement in the housing benefit certification and he was informed that Grant Thornton’s role was to ensure that the subsidy claim had been properly calculated.  There were various intricacies which could influence how much benefit a person received and Grant Thornton tested a sample of the Council’s calculations to ensure that they had been done correctly e.g. checking single claimants etc.  Grant Thornton acted as a safety net for the Department for Work and Pensions to give assurance that the processes used by local authorities to calculate vast sums of money were appropriate and accurate.

33.5           It was

RESOLVED          That the Annual Audit Letter 2015/16 be NOTED.