Minute
North Lanarkshire Council · 27 October 2022
Back to Audit and Scrutiny Panel — 27 October 2022 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
Page 1
SPECIAL AUDIT AND SCRUTINY PANEL - 27 OCTOBER 2022 28 27 October 2022 at 2 pm. A Special Meeting of the AUDIT AND SCRUTINY PANEL PRESENT Councillor Watson, Convener; Councillor Dunbar, Vice-Convener; Councillors Fisher, Hume, D. Johnston, McNally, Robinson, Stevenson and Sullivan. CHAIR Councillor Watson (Convener) presided. ALSO PRESENT In accordance with Standing Order 64(A) Councillor Hughes substituted for Councillor T. Johnston. IN ATTENDANCE The Head of Financial Solutions; Head of Business and Digital; Head of Audit and Risk; Business Strategy Manager; Strategy and Performance Manager; Finance Manager, and Democratic Services Manager. ALSO IN ATTENDANCE B. Howarth and P. Murray, Audit Scotland. APOLOGIES Councillor T. Johnston. DECLARATIONS OF INTEREST IN TERMS OF THE ETHICAL STANDARDS IN PUBLIC LIFE ETC. (SCOTLAND) ACT 2000 1. There were no declarations of interest. ANNUAL ACCOUNTS 2021/22 LETTERS OF REPRESENTATION 2. There was submitted a report by the Head of Financial Solutions providing the Panel with information on the Letters of Representation required to be submitted to Audit Scotland in respect of the Council’s Annual Accounts and the Council’s Charitable Trust Accounts for 2021/22 (1) indicating that the Letters of Representation had been signed by the Head of Financial Solutions in her capacity as the Council’s Section 95 Officer and Trustee for the Charitable Trust and Educational Trust; (2) attaching, as an Appendix to the report, a copy of both Letters of Representation; (3) explaining that, as in previous years, the letters set out the Representations of Management and confirmed that the accounts were free from material mis-statement; (4) reporting that during the course of the audit, the External Auditors had highlighted a number of mis-statements within the Council’s Financial Statements which had been adjusted for the audited accounts where these were material, and (5) advising that a list of items that had arisen relating to the Council’s Accounts and the Charitable Trust and Education Trust Accounts were contained within the external Audit Annual Report. The Panel agreed that the Letters of Representation, provided to Audit Scotland, be noted.
Page 2
SPECIAL AUDIT AND SCRUTINY PANEL - 27 OCTOBER 2022 29 ANNUAL ACCOUNTS 2021/22 – EXTERNAL AUDITOR’S REPORT TO THOSE CHARGED WITH GOVERNANCE ON THE 2021/22 AUDIT 3. There was submitted a report by the Head of Financial Solutions permitting the Panel to consider the External Auditors comments on specific matters arising from its audit of the Financial Statements for both the Council and the Charitable Trust in Education Endowments administered by the Council (1) providing background to the appointment of External Auditors to the Council and their role and remit; (2) explaining that, following completion of the audit, Audit Scotland had produced reports to those charged with governance on the 2021/22 audit for both the Council, and the Council’s Charitable Trust in Education Endowments, and (3) attaching, as Appendices to the report, reports from Audit Scotland in relation to the Council and the Council’s Charitable Trust in Education Endowments. B. Howarth spoke to the report by the External Auditor, following which the Panel agreed to note the report. EXTERNAL AUDIT – ANNUAL AUDIT REPORT 2021/22 4. There was submitted a report by the Audit and Risk Manager presenting to the Panel the Annual Audit Report produced by the Council’s appointed External Auditors, Audit Scotland in respect of the audit for the Council for the year ending 31 March 2022 (1) explaining that the Accounts Commission had appointed Audit Scotland as the Council’s appointed External Auditor and that Audit Scotland is required to annually prepare a report for Elected Members and the Controller of Audit, summarising the audit work and presenting the main findings arising from the audit; (2) informing the Panel that the External Auditor’s report presents key matters arising from each of the main areas of work undertaken by the External Auditor including the audit of financial statements and issues relating to the Council’s Financial Management, Financial Sustainability, Governance and Value for Money arrangements; (3) highlighting that, as outlined in the report by the External Auditor, they were able to place an unqualified audit opinion on the 2021/22 Financial Statements and that, although a small number of issues were highlighted by the External Auditor where scope for further improvement exists, overall, the report is considered by management to be positive with no significant weaknesses identified, and (4) attaching, as an Appendix to the report, the Audit Scotland Annual Audit Report 2021/22. B. Howarth spoke to the report by the External Auditor and answered questions from the Panel. The Panel agreed:- (1) that the External Auditor’s Annual Audit Report be noted, and (2) that implementation by management of actions agreed in response to External Audits recommendation be monitored through reports from Internal Audit. ANNUAL ACCOUNTS 2021/22 (AUDITED) 5. There was submitted a report by the Head of Financial Solutions presenting the Council’s final 2021/22 Annual Accounts, and providing Elected Members with a background on the need to consider matters raised by Audit Scotland in respect of examination of the accounts (1) reminding the Panel that the Local Authority Accounts (Scotland) Regulations 2014 require the Council to prepare an Annual Statement of Accounts in accordance with proper accounting practices and that the Accounts Commission appoints External Auditors to local authorities in order to carry out the audit of Financial Statements in accordance with International Standards; (2) informing the Panel that the review of the 2021/22 accounts by Audit Scotland was now complete and that the final version of the accounts was attached to the report as an Appendix, and (3) indicating that, following consideration of the accounts, a copy of the financial accounts signed by Council Officers and the Audit Director would be submitted to Audit Scotland and that a full Annual Report had been prepared by Audit Scotland and considered elsewhere in the meeting.
Page 3
SPECIAL AUDIT AND SCRUTINY PANEL - 27 OCTOBER 2022 30 B. Howarth spoke to the report by Audit Scotland and wished to place on record the thanks of Audit Scotland for the co-operation of the Council Officers involved. The Panel agreed:- (1) that the contents of the report be noted; (2) that the final accounts, attached to the report as an Appendix, be approved for signing, and (3) that the relevant matters raised by the External Auditor at the meeting be noted.