At the suggestion of the Director of Finance and Investment, Shaer Halewood, the Chair then agreed that the External Audit Findings for both the Merseyside Pension Fund and the Council be considered concurrently.

Mr Robin Baker of Grant Thornton UK LLP, presented the reports and thanked both the Grant Thornton team and the Council’s Finance Department for all their work in preparing the accounts two months earlier than would normally be the case. They had concluded that there were no material errors or uncertainties and would be issuing an unqualified audit opinion in respect of both sets of accounts, subject to the Committee approving the accounts.

The Draft Annual Governance Statement (AGS) was not included with the accounts but was prepared by 8 June and he recommended that in future the AGS be included on time.

Mr Baker referred to the fact that although progress had been made with Children’s Services following the Ofsted inspection because they were still assessed as ‘inadequate’ a ‘qualified except for’ Value for Money conclusion would be issued.

In response to Members’ comments, Mr Baker confirmed that they had had good co-operation in terms of completing the audit and the outstanding work had now been completed satisfactorily. He clarified that as he understood it only a further full Ofsted inspection could alter the current ‘inadequate’ assessment. He elaborated on the outstanding objection with regard to Lender Option Borrower Option and he would hope to determine this in the near future, he was aware of similar objections at other Councils.

Shaer Halewood responded to a Member’s comment that there were no plans for the use of one-offs, reserves and asset sales for future budgets from 2019/20 and that she would only allow these if there was a longer term sustainable plan to pay these back in future years. She would also be reviewing the two types of reserves, general fund balances and earmarked reserves.

Shaer Halewood then confirmed the items which the Committee were being asked to approve which were:

·  the Merseyside Pension Fund Accounts

·  the Council’s Statement of Accounts including the Annual Governance Statement

·  the Audit findings in respect of the MPF and the Council

Shaer Halewood thanked all the team in Finance who had worked on getting the accounts ready in time led by Jenny Spick, Senior Manager Financial Planning and Policy, who then introduced the report on the accounts.

Shaer Halewood then responded to further comments regarding the Annual Governance Statement and confirmed that 98 per cent of officers (excluding those in Children’s Services) had received performance appraisals in 2017/18 and that she would be happy to amend the wording in the AGS to this effect.

A Member expressed concerns regarding some of parts of the AGS, including the sentence, ‘Utilising the Wirral View publication and associated website to communicate and share information with stakeholders.’ He also referred to the sentence, ‘Effective use of transformational expertise and capacity’, when the Transformation programme had been pushed back to 2021 having started in 2016 for three years. He was content to support the financial statement but could not support the Annual Governance Statement and suggested that the vote be separated out on approving the AGS.

With regard to the matter of Equality Impact Assessments, the Director of Governance and Assurance, Philip McCourt, confirmed that this was built into the Cabinet reports processes. He then clarified what the Committee were being asked to approve.

On a motion by Councillor Ron Abbey, seconded by Councillor Angela Davies, it was –

Resolved (5:4 on the Chair’s casting vote) – That the voting be taken en bloc on the matters before the Committee.

On a further motion by Councillor Ron Abbey, seconded by Councillor Angela Davies, it was –

Resolved (5:4) – That:

(1)  Having considered the amendments to the accounts, the Audit Findings Report and the Letter of Representation the audited Statement of Accounts for the Merseyside Pension Fund for 2017/18 be approved and signed accordingly;

(2)  the Audit Findings Report presented by Grant Thornton be noted, agreeing the actions taken over the amendments to the Statement of Accounts as detailed in section 3 of the report now submitted;

(3)  the Council’s 2017/18 Statement of Accounts, incorporating the Annual Governance Statement (amended to take account of the comments on performance appraisals), be approved as presenting a true and fair view of the Council’s income and expenditure for the year and its overall financial position;

(4)  the Chair of the Audit and Risk Management Committee and Director of Finance and Investment (S151) be authorised to sign off the Letter of Representation.