Issue - meetings

To receive and consider the report of the Director of Finance.

Louise Mattinson, Director of Finance presented the report which outlines the management responses provided to the planning enquiries made by the External Auditors as part of the 2021/22 statutory accounts. In line with Auditing Standards, and to support how Audit Planning process, the External Auditors need to establish the risk of fraud and error.

Some of these queries included key events over past 12 months, unusual significant transactions, and any changes to account policies that would impact the accounts for 2021/22. It was noted that Covid-19 and the continuation of Covid business grants as well as the creation of Chorley Leisure Ltd have had a significant impact.

With relation to question 11 on the accounting estimates, it was not a binary answer as outlined in the report. This response has since been adjusted to confirm that the accounts are prepared in line with the CIPFA guidance and code of practice. The council also takes on board and implements recommendations from previous audits and the accounts are reviewed by senior management to make comparison of the estimates proposed against the actual amounts to measure the accuracy of forecasting. There are no significant changes in how the 2021/22 statutory accounts are planned and will be delivered.

The Committee discussed the contents of Appendices A and B. In response to questions, Members were advised that the revised approach to Minimum Revenue Provision (MRP) which was adopted at budget council in February 2022 would have no impact on the 2021/22 statutory accounts as the changes are only applicable from April 2022 and no retrospective adjustments will be made. As figures outlined in the Council report, the charge under the new policy will be less and the same value will be spread over the life of the asset. The real time value of the pound will also decrease.

Members discussed the land and buildings valuations which were spread over five years to ensure all properties were valued at least once every five years. Market Walk was valued every year as this was an investment building. The planning appeals budget was outlined in preparation for any potential appeals should it be required.

Resolved - To review and approve the management responses to the auditors enquiries.