Agenda item

The Committee considered the Audit Completion Report of the External Auditor relating to Durham County Council for the year ended 31 March 2017 (for copy see file of Minutes).

Mr M Kirkham, Mazars introduced the report and said that the work produced had been outstanding apart from one aspect.  He went on to say that the dry run this year had been a learning experience and it was very disappointing for all involved that the accounts could not be signed off early but he assured Members that work was underway to provide the assurance by the statutory deadline of the end of September. He said that officers had been very responsive to any queries and he gave a lot of credit to them for working to a much shorter timetable.

Mr J Collins, Mazars reported that work on the accounts had been substantially completed and although direct confirmation had not been received for one loan, additional assurances had been sought.  He went on to report that significant risks had highlighted errors in the limited sampling of the floor areas used in valuations of some of the assets.  Due to this, the accounts could not be signed off and work was underway with the Assets and Finance teams to look at further sampling.  Regular meetings would be held to identify any areas of concern. 

Councillor Shuttleworth expressed concern that one of the valuations had been based on an old school site and asked how this could have happened.  The Corporate Director of Resources assured the Members that a full review for Assets was underway and a report would come back to Committee.  He was seeking assurances for the Committee and for himself as the S151 officer.

Referring to questions about the samples used in the valuations and the certainty of previous accounts, Mr Collins explained that they were working with the Assets team to look at further sampling from this and last years accounts.  This year focused mainly on Children and Adults and last year the focus was on Regeneration.  Mr Kirkham added that they were mindful of the knock on effect to previous years accounts and would look into this.

Councillor Carr said that he had previously expressed concerns about the valuations of assets and said that pressure needed to be put onto that team to deliver.  The Corporate Director of Resources confirmed that the auditors had been very clear about what needed to be carried out and he assured Members that a fundamental review would be carried out.

Mr Robinson referred to the loan valuation and asked if any pressure was being placed onto the bank causing the delay.  The Finance Manager for Resources and Transformation and Partnerships confirmed that he would continue to put pressure on the bank to provide the assurance required and reported that this was a wider issue affecting more than Durham County Council.  Mr Collins confirmed that alternative procedures had allowed them to get the assurances required although it had been very frustrating for all involved.

Resolved:

That the report be noted.