Agenda item

The Council will receive a presentation and report from the External Auditor summarising the key issues identified during the audit of the Financial Statements for the year ended 31^st March, 2022.

RECOMMENDED TO COUNCIL FROM THE AUDIT AND GOVERNANCE COMMITTEE:-

(i)         That the External Auditor’s (ISA 260) Report 2021/22 be approved;

(ii)        That the findings on the current position with regard to the Value for Money conclusion be noted (as not completed); and

(iii)       That the findings from the audit work in relation to the 2021/22 Financial Statements be noted.

Mr G Mills (Engagement Lead) representing Grant Thornton, the Authority’s External Auditor, made a presentation on the ISA 260 report 2020/21, the report to those charged with Governance.

Mr Mills outlined the roles and responsibilities of the External Auditor with specific reference to the work undertaken in relation to the Accounts, The Annual Governance Statement, and Value for Money arrangements to date as well as explaining how this role was undertaken.

Members were advised that an unqualified ‘clean’ opinion was expected to be issued.  Regular liaison had taken place with senior officers in finance, and a positive working relationship was in place. There were no major weaknesses identified in financial systems, and no audit adjustments were required that would impact on usable reserves.

The key findings were considered, noting the national issue on infrastructure accounting, which impacted across the sector.  It was noted that the issuing of a Statutory Instrument was awaited and was expected in late December. This impacted on the ability for the auditor to issue their audit opinion.

With regards to value for money, the review of the Council’s arrangements including Financial Sustainability; Governance; and Improving Economy, Efficiency and Effectiveness, were expected to conclude in January 2023, and there were no issues currently highlighted which prevented the signing of the 2021/22 accounts.

Members noted the weaknesses highlighted in the previous year, and the review of work undertaken by the Council in response.  Also noted was the Dedicated School Grant deficit, which was an issue experienced by many upper-tier councils, and the Council’s plans to deal with this was acknowledged.

Councillor Sir Steve Houghton CBE gave thanks for the work of the auditor, and the positive relationship which existed with the Council.  Thanks, were also given to senior officers and those in finance for their work to ensure the successful management of the Council’s finances.

Following the discussion, the report was then Moved by Councillor Franklin – Seconded by Councillor Lamb; and

RESOLVED:-

i)             That the External Auditor’s (ISA 260) Report 2021/22 be approved;

ii)            That the findings on the current position with regard to the Value for Monday conclusion be noted (as not completed); and

iii)          That the findings from the audit work in relation to the 2021/22 Financial Statements be noted.