The District Auditor presented the Annual Governance Report for Wirral Council, which summarised the findings from the 2011/2012 audit which was substantially complete. The report included the key messages that had arisen from the audit and the results of the work that had been undertaken to assess the Council’s arrangements to secure value for money in the use of resources.

The District Auditor confirmed that outstanding issues had been completed and that he proposed to issue an unqualified opinion on the financial statements. Good quality statements had been received in advance of the statutory deadline, which showed evidence of quality assurance and significantly improved closedown arrangements. His report indicated that issues remained and, as at 3 September 2012, he had planned to report on two weaknesses in systems of internal control. However, those matters had now been addressed –

·  That the Annual Governance Statement presented for audit did not reflect compliance with ‘Delivering Good Governance in Local Government: A Framework’ published by CIPFA/SOLACE in June 2007 (see minute 26 post).

·  That, on 8 June 2012, he had issued a report in the public interest in respect of the award and contract management of the Highways and Engineering Services contract under section 8 of the Audit Commission Act 1998 (see minute 21 ante).

The report also highlighted issues that had contributed to an adverse Value for Money conclusion. Those issues had been acknowledged by the Council in its reports to the Wirral/LGA Improvement Board, in the Improvement Plan and in the latest financial monitoring reports to the Cabinet.

Resolved – That the report, and the improvements achieved in the current year, be noted.