Issue - meetings

Report of Ernst & Young

Steve Clarke introduced the report from Ernst and Young summarising the key findings which covered the 2018/19 financial year.  The report identified the following significant risks:

·         Delivery of a medium term sustainable financial plan.

·         Use of NEXXUS Ltd to provide adult social care placement services for the Authority.

·         Implementation of special educational needs reforms, and specifically the report issued following the joint Ofsted and CQC inspection.

The areas of Audit Focus were:

·         Risk of fraud in revenue and expenditure recognition – capital receipts flexibility

·         Misstatements due to fraud or error

·         Valuation of land and buildings

·         Pension Liability Valuation.

·         IFRS 9 financial instruments

·         IFRS 15 - Revenue contracts with customers

·         Accounting for the PFI waste scheme

Members welcomed the report which had flagged several themes which had not been visible to them previously.    

There was concern that several Elected Members had failed to complete the Declaration of Interest forms.  The Chairman agreed to speak to those members individually and asked Officers to name the individuals in future years.

With regard to gaps in the budget under the ‘Value for money risks’ heading, Members were reminded that the report did not include end of year figures which would improve the final position.

Following a question on identified errors and the transfer of controls to schools on academisation, reassurance was given that improved communication would help to alleviate the issue. There was a specific issue when applications came at the end of the financial year and deadlines for signing off accounts and dealing with leases were tight. 

The risk of working with partners and other third parties had been raised in the report.  Members asked what the authority could do to reduce the risks associated with partners. The Committee were informed that each partnership was different and reviewed on a regular basis.  However, the issue would be looked at to see if there was a corporate approach that could be developed.

RESOLVED:

a)    That the report be received.

b)    The Chairman agreed to speak to those Elected Members who had not yet completed the Declarations of Interest Forms, encouraging them to do so.

c)      In future, Elected Members who did not complete the Declarations of Interest Forms should be named.