Issue - meetings

To receive an update from the Council’s External Auditors.

The Committee considered a report setting out the Council’s Financial Statements for 2018/19, the External Auditors ISO 260 report and the Letter of Representation for 2018/19.

Leigh Lloyd-Thomas, BDO, presented the ISA260 External Audit Report 2018/19. The report set out any key issues identified following BDO’s audit of the Council’s financial statements for the year ending 31 March 2019 and provided an assessment of the Authority’s arrangements to secure value for money.

The Auditors were pleased to report that they intended to issue an unqualified opinion on the Financial Statements and value for money arrangements. This was subject to the finalising of the Jersey Property Unit Trust (JPUT) accounts by PwC.

A recent review of the accounting treatment of the JPUT by BDO, which had been conducted after the accounts were drafted, had now been finalised and would result in a number of presentational adjustments in the final Financial Statements.

The Committee was also updated on 2 cases the Government had lost relating to age discrimination in pensions. When the accounts were initially drafted there was a good chance that this judgement would be appealed and hence no provision had been deemed necessary by the actuaries and had not therefore been included in the draft accounts. However, this month the Government announced it would not appeal against the judgement and hence the auditors had determined that a provision was now required; this had led to an adjustment in the accounts.

The Committee noted the table detailing the senior officers’ remuneration and heard concerns about the increase in the salary paid to the Chief Executive in 2018/19, which included fees and allowances.  The External Auditor confirmed that the accounts were factually correct.

Arising from the Committee’s questions and comments the following points were noted:

·         The loss in value of The SQ was a “paper loss” and would only be realised in the event that the Council had to sell the property at that reduced value;

·         The external auditors were content with the data and the reasonableness of the assumptions used to underpin the valuation of The SQ;

·         The external auditors were comfortable with the Council’s 5 year financial modelling and were content with the Council as a going concern.

RESOLVED that

(i)        the audited financial statements for 2018/19 including the Annual Governance Statement for 2018/19 be received and approved;

(ii)      the Letter of Representation be approved;

(iii)     the ISA260 auditors report be noted; and

(iv)     the Chairman of the Committee be authorised to approve and sign the Financial Statements on behalf of the Council.