Agenda item

2.20 p.m.

Representatives from the external auditors, Ernst & Young, will attend to present the following report:

·         Oxfordshire County Council Draft Audit Results Report Year Ended 31 March 2021

·         Oxfordshire Pension Fund - Audit Results Report Year Ended 31 March 2021

Maria Grindley and Chandrika Sharma of Ernst & Young presented the following report: Oxfordshire County Council Audit Results Report Year Ended 31 March 2021 which contained their substantive findings related to the areas of audit emphasis, their views on Oxfordshire County Council’s accounting policies and judgements and material internal control findings.  

Maria Grindley highlighted that the audit work in respect of the Council opinion is substantially complete, however there have been delays in respect of valuation information on Property, Plant and Equipment which has extended the audit work, however it is expected that the accounts will be signed off in October subject to the remedial works being completed to the correct requirements.  This will be followed by the VFM Commentary; however, the Certificate cannot be completed until the WGA is complete which is awaiting further guidance from central government.

Maria Grindley and Chandrika Sharma responded to Members’ queries as follows:

·         There are no issues identified on journal entry testing to report to this Committee meeting, however any identified will be included in the final report.

·         There was a difference noted on the accounting for Dedicated School Grant (DSG) unusable reserve of approximately £1 m, currently in the unadjusted differences schedule, and once amended will be recorded as an amended misstatement.  However, if not amended will form part of our letter of recommendation.  Lorna Baxter, Director of Finance confirmed that as detailed in her report, an additional £0.9m from High Needs DSG will be moved from Earmarked Reserves to the DSG Adjustment Account.

·         Lorna Baxter advised that work has commenced in preparation of the implementation of the new leasing standards for local authorities and Maria Grindley added that they have identified the leases in place and formulated work required around that.  Members requested a briefing session, of which will be agreed with Lorna Baxter.  (ACTION)

·         The review into the assessment and disclosures on going concern have been completed and are satisfied that the going concern disclosure written into the statement of accounts adequately reflects the Council’s going concern assessment.

In response to a question from Councillor Brad Baines, Lorna Baxter advised that the error identified in the audit of the treatment of the Top Up Grant on the Firefighter’s Pension Fund was due to human error, however advised this has been amended.

The Committee went on to consider the report ‘Oxfordshire Pension Fund Audit Results Report year ended 31 March 2021’.

In response to a question from Councillor Roz Smith, Lorna Baxter advised that the Pension Fund Annual Report for the year ended 31 March 2021 had been presented to the Pension Fund Committee meeting of 10 September 2021, and Maria Grindley advised that Officers have advised this document will be received today.

Maria Grindley responded to other Members’ questions as follows:

·         No concerns have been raised from the testing of journals involving investment income and valuation, and this is highlighted as a general area of concern for note only.

·         Items relating to the completion of the audit outstanding at the time of writing the report are now confirmed to have been completed, however advised that the audit is still ongoing.

·         The Pension Fund accounts will be signed alongside the Council’s accounts; however, this audit will be completed by the end of September.