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Agenda item
External Audit 2020/21
Minutes:
The Director of Finance, Resources and Business Improvement introduced his report providing an update on progress with the audit of the 2020/21 financial statements. It was noted that:
· In an audit findings report presented to the Committee in November 2021, Grant Thornton stated that their work was substantially complete, they had identified no material adjustments that would impact upon the Council’s General Fund Balance, and they anticipated issuing an unmodified audit report.
· Grant Thornton noted in their audit findings report that the cost of assets under construction at Brunswick Street and Union Street should be reclassified from Property, Plant and Equipment to Inventory. This represented a change in classification which would have no overall impact on the accounts. The Council agreed to reclassify the assets as requested and an updated version of the Statement of Accounts was subsequently sent to Grant Thornton.
· The Council was told that Grant Thornton anticipated giving an audit opinion by 31 January 2022. This did not happen and other dates that were provisionally agreed with Grant Thornton then slipped. At the last meeting of the Committee, it was reported that Grant Thornton had raised further queries that had been answered and it was hoped that they would be able to issue their opinion in time for this meeting.
· Earlier this month there had been a few queries regarding, in particular, Note 31 to the accounts relating to the Capital Financing Requirement. Information had been received the previous day from Grant Thornton about how it was proposed the Council should word the Note and this had been accepted. Grant Thornton had now indicated that they anticipated issuing a signed audit opinion the following week.
Mr Paul Dossett of Grant Thornton advised the Committee that he anticipated that the 2020/21 audit would be signed-off the following week. The 2020/21 audit also required a Value for Money piece of work. This work had been completed and would be brought back to the Committee alongside the formal finalisation of the audit process. To give wider context, approximately 55% of 2020/21 accounts had been signed-off across the sector.
In response to questions, Mr Dossett explained that:
· There were no plans to undertake more technical consultations or audit work. It was anticipated that a signed audit opinion would be issued the following week. The only things that could impact on this would be if the Council identified a problem when completing the outstanding work or if problems were identified when the accounts were rechecked by Grant Thornton. There would be a change of approach to ensure that accounting issues did not delay the 2021/22 audit.
· The delay in completing the 2020/21 audit had not been intentional or wilful and was not uncommon. If Members were unhappy with the situation, they could contact Public Sector Audit Appointments (PSAA). However, there was a significant shortage of audit firms willing to undertake local authority audits.
RESOLVED: That the report be noted and that the Committee’s disappointment regarding the delay in completing the 2020/21 audit be recorded.
Supporting documents: