A Report by the Director of Resourced advised Members that the Council’s external auditors (Grant Thornton) completed the Council’s main audit 2019-20 Accounts in January 2021 and that the findings were reported to the Committee in the form of the Audit Findings Report in January.

Members were advised that the auditors are also under a duty to provide a shorter summary of the key issues/ findings from their audit for consideration by a wider audience across the Council, Pension Fund and its key stakeholders.

Mark Stocks, External Auditor addressed the Committee to inform that Grant Thornton had now produced its Annual Audit Letter that was appended to the report. The letter contained a summary of the relevant findings in a form which is more readily accessible to members of the public. Members heard how the letter would be made available alongside the Accounts on the Council’s website.

Members were advised by the External Auditor that the Council is in a difficult financial position, however progress is being made. Most notably with reference to the council’s reserves, the position has improved. Members heard how a  Capitalisation Grant had been approved so that the Council is in a balanced position by the end of the financial year.

In response to a question by a Member, the Committee heard how there is an onerous contract in relation to PFI liability as a result of the closure of the former Kingsway Academy School, the Council still has a contractual obligation to make the PFI unitary payments to the PFI Partner, Wirral Schools’ Services Ltd. In relation to this matter, the External Auditor advised that he was not aware of any other Wirral Schools in this position.

In response to a further question, Members heard how other Councils and Bodies throughout Northern regions of England had experienced similar difficulties in relation to COVID-19, however, many other Councils in the area have not been in the position to need to apply for a Capitalisation Grant

Resolved – That the Audit and Risk Management Committee approve the Annual Audit Letter and approves onward publication on the Council website