Agenda item

The Committee received an update on the 2020/21 and 2021/22 Statement of Accounts. Mr Mark Stocks, Audit Partner, Grant Thornton, External Auditor was in attendance for this item. Mr David Skinner, Section 151 Officer introduced the item.

Prior to discussion, Mr Skinner advised that in line with the requirement of the Treasury Management Strategy to report to the Committee at the earliest opportunity any local authority that the Council had an investment with who subsequently issued a section 114 or was given a capitalisation directive, or any other untoward financial event, an update was provided on a loan made to Birmingham City Council. The Council had a £10m loan with Birmingham City Council which was due to be repaid on 1 September 2023, this loan was made before the additional sign off requirements were introduced which required the sign off from the Chief Executive, Leader of the Council and Section 151 Officer. The loan was covered by the statutory underpin and there was nothing to suggest that there would be an issue with the repayment or indeed the overall financial stability of Birmingham City Council. Birmingham City Council had experienced some issues with its implementation of a new Enterprise Resource Planning (ERP) system, so it was thought appropriate to report it to the Committee at this stage.

Key points raised during the update and in discussion included:

·       In relation to the 2020/21 audit, as agreed with the auditors, the cleansed data on long term debtors and creditors, and fees and charges had been submitted. 76 samples had been selected and the Council was working through these to provide the appropriate evidence.

·       Work was ongoing in relation to cleansing other operating expenditure, short term debtors and creditors and this would be submitted to the audit team by the end of June 2023. Work was also underway in respect of cash, and cash equivalents and this would be submitted in July 2023. All other queries had been addressed and the relevant information supplied to the auditors.

·       The housing benefit work for 2020/21 had been completed and was with the external auditors for final sign off, whilst work on 2021/22 was well underway.

·       The finance team was appropriately resourced with all vacancies having been filled either with permanent or interim staff. There was the option to draw on further staff from external firms who were on standby if required.

·       The majority of the external audit team were now focused on NHS audit work and would resume work with the Council in July 2023. At present, progress was on schedule and nothing untoward had been identified.

·       Mr Stocks advised that the auditors interim annual report for 2021/22 had been issued to management and it was hoped that this would be finalised within the next month and reported to the Committee at its next meeting in July 2023.

·       The Committee noted that budget outturns were reported to Cabinet and to the Finance and Resources Select Committee quarterly. The final accounts themselves would only be presented to this Committee for review and approval.

RESOLVED:

That the update be noted.