Agenda item

(a)  Annual Accounts 2018/19 for West Midlands Combined Authority (Covering Report) (page 41)

(b)  Audit Findings Report - WMCA (page 45)

(c)  Audit Findings Report - WMITA Pension Fund (page 81)

(d)  WMCA Accounts 2018/19 (page 103)

(e)  WMITA Pension Fund Accounts 2018/19 (page 199)

(f)   Letter of Representation – WMCA (page 231)

(g)  Letter of Representation - WMITA Pension Fund (page 235)

The committee considered a report on the Annual Accounts of the West Midlands Combined Authority and the West Midlands Integrated Transport Pension Fund for the financial year ended 31 March 2019. The committee also received a summary of the audit findings for both West Midlands Combined Authority and West Midlands Integrated Transport Pension Fund and Letters of Representation.

Further to concerns around the liquidity of level three assets, the committee requested further details on as to whether the recent Woodford Investment Management issues were considered a risk for the WMCA.

The External Auditor confirmed that he was satisfied that the WMCA accounts, as audited, could be approved by committee. It was noted that a national issue regarding pension liabilities relating to an ongoing litigation of a separate public body, has the potential to impact on the pension fund valuation and accounts of all public sector bodies dependent upon the final ruling. This would become clearer in the next few weeks. It was noted that this could result in adjustments being required to the accounts in regard to the pension fund liabilities on the balance sheet. This would have no impact on the financial outturn for the Authority or the Pension Fund but could require a late adjustment.

Resolved:

(1)       The Director of Finance sign the letter of representation for WMCA and the West Midlands Integrated Transport Authority Pension Fund.

(2)       The annual accounts of WMCA and the West Midlands Integrated Transport Authority Pension Fund be approved subject to resolution of the outstanding Pension query.

(3)       The audit findings reports presented by Grant Thornton be noted.

(4)       Grant Thornton’s proposal to issue an unqualified audit opinion on the accounts be noted.

(5)       That the Mayor and Director of Finance be authorised to sign the accounts on behalf of the WMCA and that delegated authority be given to the Director of Finance in consultation with the Chair of committee and Grant Thornton to agree any adjustments to the accounts arising from the pension litigation mentioned above.