Issue - meetings

To receive and consider the 2020/21 Letter of Representation.

Louise Mattinson, Director of Finance presented the proposed draft letter of representation which is provided in connection with the audit of the financial statements of Chorley Borough Council for the year ended 31 March 2021.

Georgia Jones advised that since the agenda was published, Grant Thornton have identified a further item regarding business grant income of £675k which has been incorrectly classified within the Comprehensive Income and Expenditure Statement (CIES). It was understood that the note in the accounts will be updated in respect of this but the CIES will not. Members were asked to confirm that they were happy for the mis-statement to remain unadjusted in the CIES.

Louise Mattinson, Director of Finance advised of the reasoning for this and explained that the reclassification relates to the analysis of business grants provided by the government to the council during the Covid pandemic, for which the council was deemed to act in the capacity of agent for some, whereas for others it was deemed to act as principal, each of which had different accounting treatment. Members were reassured that although a sizeable amount, the figure remained below the materiality threshold and therefore the council have chosen not to adjust.

Following queries, the Committee were advised that the Appendix detailing the Unadjusted mis-statements will be published alongside the accounts and a note would be included on the accounts themselves providing justification for the decision not to reclassify.

Resolved:

1.    That the Committee authorise the Director of Finance and Chair of Governance Committee to sign the Letter of Representation

2.    That the Governance Committee is happy that the CIES won’t be adjusted for the £675k discrepancy identified by Grant Thornton which Chorley Council considers immaterial.