Agenda item

External Audit Progress Report

To receive a progress report.

External Audit Progress Report

(A copy of the report has been filed with the signed minutes).

The report provided Audit Committee with:

•         an update on progress in delivering the 2020/21 audit and assurance work; and

•         a summary of recent relevant reports and publications for information.

C. Waddell from Mazars drew members’ attention to the key points of the report, including:

The final engagement for 2020/21 was completed in April 2022, in respect of the housing benefits subsidy return to DWP.  Some additional testing was required in respect of errors identified.

Regarding the 2020/21 audit, the work on the financial statements was substantially complete.  It was envisaged that the 2020/21 Audit Completion Report be brought to the Audit Committee upon completion of outstanding matters. The matters outstanding were detailed within the report and included:

•         group accounts – consideration of assurance from the component auditor, once available, upon completion of the Advance external audit;

•         consideration of the outcome from the independent corporate governance review.

There had been significant matters discussed with management in relation to the audit of the financial statements included Group financial statements, Farrans, property, plant and equipment and Pensions.  Two identified as areas of consideration of lawfulness were the disclosure of senior officers’ remuneration and exit packages.

It was reported that following the issuing of the Section 114/114a report additional work would be needed to take place regarding the following:

•         Disclosure of senior officers’ remuneration.  For the 19/20 accounts External Audit had issued their opinion on the accounts but not the Value for Money arrangements.  The Value for Money conclusion would now need to consider the Section 114/114a report.  There could also be the need to include wording within this and the 2019/20 accounts may need to reflect the issuing of the report.  An internal process was taking place to ensure the correct procedure was followed in terms of disclosures within the accounts. 

•         Regarding the wider Value for Money arrangements, it was confirmed the External Auditor was awaiting the outcome following the 8 June Council meeting where it was understood the Solace Independent Review’s findings of the Council’s Corporate Governance arrangements would be presented.  Anything arising from the review would need to be discussed with appropriate officers and potentially the independent review team.   However, it was too early to conclusively say what, if any, action would be needed before the outcome of the review.

•         Exit packages.  Discussions with the Section 151 Officer were taking place about some of the issues that may or may not exist in relation to this business following a review of exit packages over the last two years. 

It was proposed to bring the audit completion report to the July meeting along with the plan for 2021/22. 

In response to a question posed by Councillor Dale, it was confirmed that any maintained school which converted to a Trust would be shown as a disposal within the Council accounts and would not have an impact on Council Tax.

RESOLVED that the progress report be noted.