Agenda item

ISA 260 Report 2014-15 (including Members' Expenses)


ACARAC (29) Paper 4 – ISA 260 Report 2014-15

6.1        Ann-Marie presented the International Standard on Auditing (ISA) 260 report.  She confirmed that they had received all of the documents from the Assembly Commission on time and thanked Nicola’s team for their assistance.  She informed the Committee that the accounts were unbiased, fair and clear.  The main points she highlighted were:

·           Change of accounting policy for ICT assets.  WAO remain of the opinion that the change in treatment of ICT assets is an accounting policy change requiring a prior year adjustment.  Management’s interpretation of IAS8 is that no prior period adjustment is required.

·           Dilapidation provisions for leased properties. 

·           Pension contributions of Assembly Member Support Staff.

·           Accounting for Assembly Member costs – holiday accrual for support staff.

6.2        The Chair thanked the WAO for highlighting these points.  On the first point, the Committee agreed that change in ICT asset treatment did not constitute a change in accounting policy and were content that the accounts remained unchanged. 

6.3        On the dilapidation point, Nicola added further information supporting management’s view confirming that the Estates and Facilities Management team had produced a 10 year rolling maintenance programme for Tŷ Hywel and that the allocation for improvements in current and future budgets remained manageable.  To provide additional assurance, Nicola would take on board the WAO suggestion to consider gaining an independent view on the condition and maintenance requirements of Tŷ Hywel.  The Committee supported management’s approach.

6.4        On the pension contribution point, Nicola informed the Committee that further discussions would be held with the Remuneration Board to ensure the impact of support staff salary sacrifice was clarified.   The ISA 260 would also be amended to reflect the refund from HMRC was to Assembly Members and not the Assembly Commission.  The Committee supported management’s approach.

6.5        On the final point regarding the accounting for Assembly Member costs, the WAO advised that their enquiries to date meant they were unable to form a clear view on whether an accrual for support staff’s untaken holiday leave was appropriate.  As the potential values were not material, the WAO proposed to accept the current treatment and conclude the matter in 2015-16.  Committee members supported this approach.  In response to a Committee member query, the WAO stated that they could not confirm whether a retrospective adjustment would be necessary when they became clear on the accounting treatment, but they would keep the Committee informed.

6.6        The WAO confirmed that the Letter of Representation should be signed solely by the Accounting Officer and not also by ACARAC.

6.7        The Chair thanked the WAO for their presentation of the ISA 260, and urged Nicola, her team and the WAO to review the 2014-15 audit process to avoid a repeat of the delays experienced.               


-        Nicola to consider gaining an independent view on the potential dilapidations of leased property. 

-        Nicola to work with the WAO to agree the accounting treatment of Assembly Member costs. 


Next meeting is scheduled for 16 November 2015.