Agenda item

External Audit Progress Report and Sector Update - July 2020

 

The Council’s External Auditor (Grant Thornton) will submit a report giving details about their work as at 20th July, 2020, providing an update of the impact Covid 19 has had on working arrangements, outlining the audit deliverables for 2019/20 together with a Sector Update summarising emerging national issues and developments.

Minutes:

Mr G Mills representing the Council’s External Auditor (Grant Thornton) submitted a report giving details about their work as at 20th July, 2020, outlining the Audit Deliverables together with a Sector Update summarising emerging national issues and developments.

 

Particular reference was made to the following:

 

·         The current position with regard to the Financial Statements Audit which had commenced recently with a promising start.  A report on the work on the Audit findings (ISA 260 report) and the opinion on the Statement of Accounts would hopefully be submitted in October, 2020.  There was also a discussion as to why it might not be possible to present these at an earlier date

·         The current position with regard to work being undertaken in relation to Covid 19 which had resulted in an addendum to the Audit plan set out a new significant financial statement risk

·         The ongoing work in relation to Value for Money – it was anticipated that the Value for Money Conclusion would be given in October

·         The potential implications of a New Audit Code to be introduced from 2020/21 onwards particularly in relation to Value for Money and associated recommendations.  The public consultation on the code was currently being undertaken and a report on the implications would be submitted at an appropriate time

·         Other areas of work included:

o   Certification of claims and returns

o   Meetings held with the Finance Team and other Senior Officers

o   Events organised and publications issued to support the Council

·         It was reported that reports from Grant Thornton and detailed within the Sector Update could be circulated via email if required

·         In relation to the annual Audit Letter, it was noted that this was a mandated report that the External Auditors were required to issue typically one month after the audit opinion.  It was hoped that the draft would be issued in November for review by the Service Director Finance with it being presented to this Committee in December

·         With regard to post balance sheet events, this was detailed within Note 18 of the draft accounts and currently highlighted the impact of Covid 19.  These would be discussed with the Finance Team and any such events would be taken into account until the point of sign off in October

 

In the ensuing discussion particular reference was made to the following:

 

·         It was noted that the Annual Audit Letter was essentially a high level summary of the detailed findings included within the ISO 260 Report and as such should not include anything that did not appear in that report

·         There was a discussion of the revaluating deficits and net credit balances.  The External Auditor explained the accounting rules in such instances which were on an asset by asset basis and he commented that due to local authority accounting regulations/rules there would be no impact on the usable reserves.  This was confirmed by the Service Director Finance

 

RESOLVED  that the External Audit progress report and Sector Update be noted.

 

Supporting documents:

 

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