Agenda item

To consider the report of the Head of Finance.

The Head of Finance submitted a report (HF/78/18) to approve the Authority’s Statement of Accounts for the financial year 2017/18.  A copy of the Statement of Accounts was attached at Appendix 1 to the report.

The Service Manager - Accountancy introduced the report and reminded Members that the Audit Committee had considered the Statement of Accounts for the 2017/18 financial year at its meeting held on 31 May 2018.  As a consequence of misstatements identified during the audit, amendments have been made in the notes to the accounts which have been agreed by the auditor.   A summary of the key corrections made are noted in Exhibit 1 of Appendix 3.   As requested at the May meeting, a copy of Wrexham Commercial Services Ltd accounts for the 2017/18 financial year had been attached at Appendix 4.  The Service Manager then highlighted and explained the adjustments and amendments made to the accounts, as agreed by the External Auditor.  

During consideration of the Statement of Accounts Members commented upon and sought further clarification on the following matters in particular:

·         Note to Accounts No. 35 - Social Care Safe Custody and Amenity Funds: The Service Manager – Accountancy provided further information on the controls in place on the day-to-day management of individual Safe Custody Accounts for service users living in the community, who are unable to deal with their financial affairs due to their mental incapacity.

·         Note to Accounts No. 36 – Creditors.  The Service Manager – Accountancy provided further information and a breakdown of the figures for Long and Short term creditors.  Goods and services received before 31 March 2018 that had not been invoiced or recorded onto the accounts payable system accounted for £8.4m of the £12m total.  The remainder being holiday pay accrual (£1.3m), Credit on Council Tax (£900k) and Housing Revenue Account (£600k).

·         With reference to the WAO ‘Audit of Financial Statements Report’ assurances were sought that action had been taken to overcome the problems associated with the integrity of the general ledger and accounts payable system as experienced during August / September 2017.

Matthew Edwards, Financial Audit Manager, Wales Audit Office (WAO), reported that the WAO’s key issues were summarised in the ‘Audit of Financial Statements Report’ submitted at Appendix 3 and it was the Audit General’s intention to issue an unqualified audit report on the financial statements.  He thanked the Head of Finance and his team for preparing the draft financial statement to a high standard and for their assistance in enabling a smooth process and completion of the audit. 

The Chair, on behalf of the Audit Committee, also thanked the Head of Finance and his team and the Welsh Audit Office for completing their respective roles in a timely manner and enabling the Council to bring forward the timetable for preparing and publishing the accounts.

RESOLVED –

(i)         That the Statement of Accounts for the 2017/18 financial year attached at Appendix 1 to report HF/78/18, be approved.

(ii)        That the contents of the management representations letter, as set out in Appendix 2 to report HF/78/18, be approved.