Agenda item
ISA 260 Report 2014-15 (including Members' Expenses)
- Meeting of Senedd Commission Audit and Risk Assurance Committee, Thursday, 9 July 2015 15.15 (Item 6.)
- View the background to item 6.
Minutes:
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.
Actions
-
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.