Issue - meetings

Charlotte Goodrich and Neil Hewitson from KPMG addressed the Committee with regard to the financial statements. Work was still ongoing regarding the auditors opinions on the financial statements but the certification for housing benefit had been completed.

Members sought clarification as to when the draft accounts would be finalised.  They were advised that the accounts required adjustments and these were currently being examined by the auditors.

Some Members noted that this had been the first time that there had been an issue on this scale and requested clarification on the details of the delay in finalising the accounts.  Members were advised that it had been due to a combination of technical issues, previous errors under the old financial system and staffing issues. KPMG added that the reasons for the delay also included the capacity and capability within the finance structure, a significant change in the ledger and the fact that some basic core financial controls had not operated throughout the year e.g. monthly bank reconciliations where the interfacing had with the new system had not worked. This has now been rectified.

Some Members were concerned about this and requested that a report be provided to Committee outlining how this could be prevented from happening again.

Members were informed that measures had been put in place to prevent the issue arising again. Some Members asked who had recommended the software and were advised that it had been chosen through a tendering process. However, due to the issues encountered with the system, the final invoice was in dispute.

The final accounts would be signed off in time for the next Audit and Standards Committee meeting in March.  It was requested that a report be provided for this meeting outlining what the specific issues had been and assurances that it would not happen again.

Members were advised that the delay in finalising the accounts would not incur any financial penalty however, the breach would be flagged to the National Audit Office and published on the website.

Resolved that:

i)                 the report be noted; and

ii)               a report be brought to committee in March outlining the issues which had delayed the finalising of the accounts and ensuring a mechanism had been put in place to prevent this delay happening again.