Agenda item

The Committee considered a report of the External Auditor (Grant Thornton) which had been submitted in accordance with International Standard on Auditing (UK) 260, the External Audit Governance Report 2022/23.

G Mills and T De Zoysa, representing the External Auditor, attended the meeting to present the report and to answer Members questions.

The following key highlights were presented:

·       The External Auditor had substantially completed its audit of the Authority’s financial statements for the year ended 31 March 2023.

·       External Audit received the Council’s draft accounts on 31 May 2023, in line with the statutory deadline for unaudited accounts. The Council was in a minority of approximately 30% of local authorities that managed to achieve the draft accounts deadline.

·       The External Auditor’s Value for Money work was not yet complete and the reasons for this were outlined within the report.

·       External Audit expected to present the Auditor’s Annual Report to the Committee in January 2024.

·       The Council continued to be assessed against progress made on the key recommendations in relation to implementing SEND reform and findings from OFSTED, further detail would be provided in the Auditor’s Annual Report.

·       Section 2 of the report set out the significant risks as communicated in the Audit Plan.

·       New issues and risks which had been identified during the course of the audit were presented in the report.

·       The External Auditor’s note on Independence and Ethics and Audit Fees were detailed in Section 4 of the report.

·        Audit adjustments were outlined in Appendix D of the report.

·       Subject to the outstanding queries being satisfactorily resolved, External Audit anticipated issuing an unqualified (‘clean’) audit opinion.

Thanks were expressed to Neil Copley, Steve Loach and Vanessa Hunter and the wider Finance Team for their continuing help and cooperation throughout the audit work.

Discussion arose regarding the valuation of Authority’s defined benefit pension scheme; it was noted that the pension fund was now an asset on the Council’s balance sheet, but it was highlighted that this did not affect the usable reserves of the Council. The significant accounting change regarding local government pension schemes was influenced by bond yield fluctuations and was mirrored across the country with guidance on how to account for this asset issued in the Summer for both practioners and auditors.

It was noted that a section in the forthcoming Value for Money report would detail borrowing and interest costs for the Council, which would be presented to the Committee at the January meeting.

RESOLVED that the Committee place on record their thanks and appreciation for the hard work of the External Auditor and the Director of Finance and the Finance Team in this process; and   

RECOMMENDED TO FULL COUNCIL ON 23 NOVEMBER 2023:- 

(i)              That the External Auditor’s (ISA 260) Report 2022/23 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 2022/23 Financial Statements be noted.