Decision details

A report was presented by Karen Murray, external auditor, on the overall findings of the external auditor in relation to the audit of the annual accounts of Lancashire County Council, their proposed opinion on those accounts, and conclusion on the council's value for money arrangements. The external auditor thanked the Council's finance team and other staff for the level of support and assistance provided during the audit.

In commenting on the county council's accounts, Karen Murray, external auditor, informed the committee that the draft accounts were, overall, prepared to a good standard. However, a number of misstatements and misclassifications had been identified within the accounts and these had been discussed with the County Treasurer and members of her team and the accounts amended.

The report also included the value for money conclusion. The opinion given in the report confirmed that apart from two matters, the council had proper arrangements in place to secure economy, efficiency and effectiveness in its use of resources.

The committee also noted that the external auditor was unable to formally conclude the audit and issue an audit certificate until they had completed their consideration of matters brought to their attention by the Council in 2012/13. However they were satisfied that these matters did not have a material effect on the financial statements or a significant impact on their value for money conclusion.

The report included a recommendation requiring all declarations for related party disclosures to be completed annually.  In response to concerns raised by the Members, Officers were asked to investigate whether any financial sanctions could be imposed on councillors who failed to complete their declarations.

Resolved: That: 

(i)  The external audit findings report covering the audit of the County Council for year ended 31 March 2016 be noted.

(ii)  The adjustments to the financial statements and other issues raised by the external auditor, as set out in the report presented, be noted.

(iii)  Officers be asked to investigate whether any financial sanctions can be imposed on Councillors who fail to complete their related party disclosure declarations.