Decision details

The committee considered the Audit Commission’s Annual Governance Report for the year ending 31 March 2012.  The report included the letter of representation which gave the Audit Commission specific management assurances regarding the accounts of the Lancashire County Council and Lancashire County Pension Fund.

In commenting on the county council's accounts, Karen Murray, district auditor, informed the committee that she had not identified any material errors within the financial statements and those errors which had been identified and which were set out on page 5 of the report, had not affected the underlying financial position of the council. She also commented that this was a significant achievement on the part of the council's finance staff as it had been a particularly challenging year with the introduction of a number of changes. 

The report also included the Audit Commission's value for money conclusion which assessed whether the council had put in place satisfactory corporate arrangements for securing economy, efficiency and effectiveness in its use of resources.  The committee noted that overall the county council had demonstrated a strong financial performance and responded well to the demands placed on it whilst showing an overall improvement in performance across its services. 

In commenting on the Lancashire County Pension Fund account, Fiona Blatcher, senior audit manager, informed the committee that the audit work had identified a potential misclassification of accounting entries between the County Council and the Pension Fund and that the investment assets balance and investment liabilities balance had been understated by 0.7m.  A small number of amendments to the accompanying disclosure requirements were also highlighted.

The deputy county treasurer assured the committee that these errors would be rectified.

The committee was informed that the county treasurer had signed the letter of representation to the district auditor and members were asked to agree to the Chair of the committee signing the letter.

Resolved:  That:

i)  The Audit Commission Annual Governance Report covering the audit of the County Council and Lancashire County Pension Fund for year ended 31 March 2012 be noted.

ii)  The adjustments to the financial statements and disclosure requirements as set out in the report now presented be noted.

iii)  The Chair of the committee be authorised to sign the letter of representation tabled at the meeting.

iv)  The findings in relation to the value for money conclusion as set out in the report now presented be noted.