Prior to the consideration of this item the Head of Financial Services informed Committee that the next four items related to the Annual Accounts for 2015/16. He presented an overview of the process and the related documents in place for signing-off the accounts. He introduced the External Audit Findings, as prepared by Grant Thornton.

Robin Baker, Engagement Lead at Grant Thornton explained that the purpose of the report was to highlight key issues affecting Wirral Council and the preparation of the Council’s financial statements for the year ended 31 March 2016. It was explained that Grant Thornton are required to carry out sufficient work to satisfy on whether the Council had made proper arrangements to secure the economy, efficiency and effectiveness in its use of resources. 

Members were informed that electors are given the opportunity to raise questions about the Accounts. It was reported that there is one outstanding objection. The Objector had suggested that Grant Thornton prepare a public interest report and apply to the courts for a declaration that Wirral Council’s Lender Option, Borrower Option loan borrowing as referenced in the 2015–16 accounts is unlawful. It was explained that this issue affects a number of local authorities and it was necessary to seek further advice and guidance on this issue. Therefore the Audit cannot be formally closed for this year at this stage.

Robin Baker responded to questions and explained that investigation into the nature of the objection was ongoing.

Members were then advised that when concluding on value for money main considerations were:

·  The Council continues to face significant financial challenges going forward. The 2016/17 quarter 1 (June 2016) revenue monitoring report set out a forecast overspend of £1.1m. The 2016/17 revenue budget included a budget contingency of £12m to mitigate the financial risks associated with demand pressures and the delivery of previously agreed savings. Continuing budgetary pressures relating to Adult Social Services, Children’s Services and Transformation and Resources have led to £11.1m of that contingency being allocated early in the financial year.

·  In July 2015, the Council approved a new Wirral Council Plan: A 2020 Vision. The plan sets out key priority areas and desired outcomes for both people and place and underpinning the priorities are twenty outcomes to be delivered by 2020. The Council acknowledges that, given the challenging financial position, difficult decisions remain to be made to ensure both the successful delivery of the Wirral Plan and achievement of statutory responsibilities.

·  The Council has a track record of delivering required savings to date although the challenges faced going forward are arguably getting tougher. Appropriate arrangements are in place to plan finances effectively alongside reliable financial reporting to support the delivery of the Council’s strategic priorities. Overall, the Council has responded positively to the challenging financial environment during the year and has set out in the MTFS a clear view of what needs to be done in 2016/17 and beyond.

·  The Council remains committed to actively exploring alternative means to deliver services alongside supporting local redevelopment and regeneration through a range of planned actions. The Council is actively involved in supporting the Devolution Plans of the Liverpool City Region Combined Authority.

The findings of the recent Ofsted Report, referred to in Minute 19, were such that the Value for Money conclusion would be revised to being a qualified Conclusion for 2015/16.

Robin Baker referred to the Audit Opinion being issued before 30 September 2016 and the Audit Findings being updated to incorporate both the Audit Opinion and the update regarding Value for Money.

Resolved – That the report be noted.