Agenda item
External Audit opinion for the financial year 2019-20
- Meeting of Senedd Commission Audit and Risk Assurance Committee, Monday, 15 June 2020 09.30 (Item 4.)
- View the background to item 4.
Minutes:
ARAC (03-20) Paper 4
ISA 260 Report
4.1 Gareth Lucey presented the ISA 260 report
to the Committee, confirming their intention to issue an unqualified audit
opinion on this year’s accounts. He added that this had been a very clean audit
with no misstatements identified or significant corrections to bring to the
attention of the Committee. They had only identified minor presentational
amendments to disclosures within the Annual Report and Accounts in relation to
the valuation of assets which had been taken on board.
4.2 Gareth explained that the table of Covid-19
impacts included in the Audit of Accounts (ISA 260) Report was a standard item
for all audits. There was no significant impact on the accounts, although the
report highlighted a comment by the property valuer indicating material
uncertainty around the asset values of the Senedd buildings. To ensure
transparency (and consistency with other public sector bodies facing similar
issues) the Commission has included the valuer’s comments below Note 4 of the
financial statements. Gareth explained that Audit Wales have also included an
emphasis of matter paragraph within the Assistant Auditor General’s audit
certificate to draw attention to this. However, the 2019-20 audit opinion is
unaffected by this matter.
4.3 The audit certificate for 2019-20 also
included a new disclaimer around assurance over ‘other information’ in the
Annual Report. Gareth clarified that other information comprises the
information included in the annual report other than the financial statements.
The disclaimer states that the audit opinion on the financial statements does
not cover the other information. However, Gareth did confirm that the Audit
Wales team had reviewed the Remuneration Report as part of its work and was
satisfied that the other information in the Annual Report was consistent with
the financial statements.
4.4 The Audit Wales team thanked the Senedd
Commission Finance team for their hard work in ensuring such a clean audit and
smooth and straightforward audit process. They also noted that, because they
were able to adapt some processes, there had been no significant negative
impact as a result of the Covid-19 pandemic.
4.5 Nia Morgan also wished to record her thanks
to her team for the incredible effort and additional hours they had worked to
ensure the audit work was completed to the original timescales. She also
thanked the Audit Wales team, acknowledging how hard both teams had worked to
carry out such a thorough audit.
4.6 Committee members were impressed by how
efficiently the audit work had been carried out, particularly given the
Covid-19 situation. They asked how lesson learned from this experience,
particularly in relation to the challenges and opportunities presented by
working remotely would be captured and built into the approach for future
audits.
4.7 Ann-Marie Harkin explained that Audit Wales
would be liaising with other audit bodies as part of their internal learning
mechanisms and this would include consideration of how best practice could be
shared more widely across both public and private sector auditors. This would
also include discussions with Nia and her team in terms of specifics on the
approach to future auditing of the Senedd accounts. The Chair, Committee
members and both Ann-Marie and Gareth agreed that the ability to carry out the
audit work remotely was testament to the flexibility afforded by the robust
systems in place at the Senedd Commission.
4.8 In relation to the request for last minute
changes to the presentation of disclosures in the accounts around asset
valuations and changes to the Audit Certificate, Nia noted that, in future, it
would be helpful to be informed of these earlier in the process.