Agenda item

Jamie Bewick, Manager Public Sector Assurance, Grant Thornton introduced the report, which highlighted the significant findings and key matters arising from the audit of Lewisham’s financial statements for the year ended 31 March 2015. He informed Panel members that overall it was a good audit, and following some amendments that are yet to be done, it would be given an unqualified conclusion. He added that there were good systems in place, and although the Council was financially challenged there were only few suggestions made.

Councillor Mallory asked about the incorrect classification, and was told that a transaction had been posted in the wrong year. Councillor Mallory asked if this would affect the accounts, and was told it would not. He then asked how many hostels the Council have, and was told 7.

Following some clarifications as requested by Councillor Ingleby he stated that he was pleased to note that this was a good audit for the Council. Jamie Bewick stated that Grant Thornton acknowledged that the Council had done well given the scale of savings it had to make in relation to its deprivation.

The Head of Corporate Resources said last year’s plan was slightly late, and officers were working hard to ensure that issues that were highlighted last year were being monitored to avoid any delays. Darren Wells, Director, Grant Thornton said they had not yet seen the evidence, but have discussed recommendations and issues with the Executive Director for Resources & Regeneration, the Head of Financial Services and the Group Finance Manager, Core Accounting.

The Chair commended officers for the improvement, she said although there was room for additional improvement she was pleased to see the report. Councillor Mallory said he was also pleased with the report especially with the current reduction in staff. Councillor Slater asked whether temporary or freelance staff were being used to assist with the work, and was told that management was keen to see stability and were trying to use permanent staff to do the work. 

The Chair asked how officers would cover long term illnesses, and was told that fortunately they had not have any to date. Councillor Slater said temporary staff could be expensive. The Head of Financial Services emphasised that management was trying to ensure that the section was self- reliant, and discouraging single person dependency in any particular job. Councillor Ingleby asked whether the £5m mentioned on the savings plans for new homes bonus money, meant £5m would be spent on new homes. He was told that the money was to fund infrastructure and services which would result during the course of building the new homes.

Pensions Fund

The Chair said the pensions audit findings were very favourable. Jamie Bewick said there was nothing in particular to bring to the Panel’s attention. He added that he did not foresee any problem in signing the opinion, and Grant Thornton proposed to give the Council an unqualified VFM conclusion.

In response to Councillor Ingleby’s question as to whether this report would go to the Pensions Board, it was noted that the Pensions Board have no formal role in this process, but at their meeting in July it was agreed that key documents would be forwarded to them.

RESOLVED that the External Auditors reports for the Council’s Main Accounts and the Lewisham Pension Fund Accounts 2014/15 be noted.