1.       CROSS-CUTTING ISSUES AND IMPLICATIONS

2.      INTRODUCTION AND BACKGROUND

2.      

2.1     Committee members are invited to consider the report of the external auditor which provides an update on progress with the audit of the 2020/21 financial statements and offers a summary of emerging national issues and developments of relevance to the local government sector.  Representatives from Grant Thornton will be in attendance at the meeting to present their report and respond to questions.

2.2     In accordance with Accounts and Audit Regulations, the Council was required to have its audited Statement of Accounts for the 2020/21 financial year approved by the Audit, Governance and Standards Committee by 30 September 2021.

2.3     The draft financial statements were prepared by the finance team and presented to the committee at its meeting in July, with audit fieldwork commencing in late August.  An updated version of the statements was then presented to the committee at its meeting in September.  At this time, Grant Thornton advised that insufficient work had been completed to issue an audit opinion by the statutory deadline of 30 September, but that they anticipated that outstanding work would be completed during October 2021.  The committee agreed at this meeting to defer the approval of the accounts until its November meeting, in order to ensure that this decision could be taken with reference to the audit findings.

2.4     Subsequently, the updated Statement of Accounts and Grant Thornton’s Audit Findings Report were presented to the committee in November.  At this time, some further adjustments relating to the capital accounting entries were anticipated, and the committee approved the accounts subject to the satisfactory resolution of these issues by the Director of Finance and Business Improvement in consultation with the Chairman of the Committee.  A draft unqualified audit opinion was presented with the audit findings and at this time, it was hoped that the opinion would be formally issued shortly after the meeting.

2.5     Disappointingly, work to conclude the 2020/21 audit is still yet to be finalised.  Officers have provided updated financial statements, and Grant Thornton have advised that they expect to be in a position to issue the audit opinion by 31 January.  Appendix 1 provides further information regarding the status of the audit, and some wider information concerning the national picture for the local government sector.  Officers are maintaining regular liaison with the audit team to ensure that the 2020/21 financial statements audit can be concluded as soon as possible.

3.   AVAILABLE OPTIONS

3.1     Committee members are asked to note the external auditor’s report attached at Appendix 1.

4.        PREFERRED OPTION AND REASONS FOR RECOMMENDATIONS

4.1     The report is for noting only.  It is recommended that the committee takes time to consider this as it supports the discharging of responsibilities in relation to the statutory accounts and audit.

5.       RISK

5.1  Risks have been considered with reference to the Council’s risk management

  framework, and are considered to be within acceptable levels.

6.       CONSULTATION RESULTS AND PREVIOUS COMMITTEE FEEDBACK

6.1     Members of the public have legal rights to inspect, ask questions about and

        challenge items in the Council’s accounts. Details of this have been

        published on the Council’s website and the statutory period ended on 10 September. One enquiry was received regarding Covid Grants and rent deferrals, and this has been dealt with.

7.       NEXT STEPS: COMMUNICATION AND IMPLEMENTATION OF THE DECISION

7.1     The external auditor has advised that they anticipate finalising the audit of the financial statements 31 January 2022.

8.        REPORT APPENDICES

The following documents are to be published with this report and form part of the report:

·         Appendix 1: External Auditor’s Progress Report & Sector Update.

9.        BACKGROUND PAPERS

None