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Audit, Governance & Standards Committee

27 September 2022

 

External Auditor’s Audit Plan 2021/22

 

Final Decision-Maker

Audit, Governance & Standards Committee

Lead Head of Service

Mark Green, Director of Finance and Business Improvement

Lead Officer and Report Author

Paul Holland, Senior Finance Manager (Client)

Classification

Public

Wards affected

All

 

Executive Summary

 

This report from the Council’s External Auditor, Grant Thornton, sets out the planned approach to delivering the audit of the 2021/22 financial statements and value for money conclusion.

 

Representatives from Grant Thornton will be in attendance at the meeting to present their report and respond to questions.

 

Purpose of Report

 

Noting

 

 

This report makes the following recommendations to this Committee:

1.   That the external auditor’s audit plan, attached at Appendix 1, be noted.

 

 

 

Timetable

Meeting

Date

Audit, Governance & Standards Committee

27 September 2022



External Auditor’s Audit Plan 2021/22

 

1.       CROSS-CUTTING ISSUES AND IMPLICATIONS

 

Issue

Implications

Sign-off

Impact on Corporate Priorities

We do not expect the recommendations will by themselves materially affect achievement of corporate priorities.  However, they will support the Council’s ability to discharge its responsibilities in relation to the 2021/22 financial statements audit and value for money conclusion.

Director of

Finance and

Business

Improvement

 

Cross Cutting Objectives

The recommendations set out above will not have any material impact on the cross-cutting objectives.

Director of

Finance and

Business

Improvement

 

Risk Management

This report is presented for information only and has no decisions which give rise to risk management implications.

Director of

Finance and

Business

Improvement

 

Financial

The scale fee published by Public Sector Audit Appointments Ltd is £41,666.  However, the final audit fee for 2021/22 from Grant Thornton is £64,666 including additional fees for extra work they are required to do, including the Value for Money work.

Director of

Finance and

Business

Improvement

 

Staffing

No implications identified.

Director of

Finance and

Business

Improvement

 

Legal

The Local Audit and Accountability Act 2014 sets out the framework for audit of local authorities.

Interim Team Leader (Contentious and Corporate Governance)

Privacy and Data Protection

None identified.

Director of

Finance and

Business

Improvement

 

Equalities

The recommendations do not propose a change in service therefore will not require an equalities impact assessment.

Equalities & Communities Officer

 

Public Health

 

 

No implications identified.

Director of

Finance and

Business

Improvement

 

Crime and Disorder

No implications identified.

Director of

Finance and

Business

Improvement

 

Procurement

No implications identified.

Director of

Finance and

Business

Improvement

 

Biodiversity and Climate Change

There are no implications on biodiversity and climate change.

 

Biodiversity and Climate Change Officer

 

2.      INTRODUCTION AND BACKGROUND

 

2.1     The external auditor produces an annual audit plan for the financial statements audit opinion and value for money conclusion. As in previous years this work will be undertaken by Grant Thornton, the appointed auditors. A copy of the plan, which includes the outcomes of work undertaken to date, is attached at Appendix 1.

 

 

3.   AVAILABLE OPTIONS

 

3.1     As the committee charged with responsibility for overseeing the financial reporting process, the Audit, Governance and Standards Committee is asked to consider and note this report.  The committee could choose not to consider this report; however, this option is not recommended since the report is intended to assist the committee in discharging its responsibilities in relation to external audit and governance.

 

 

4.        PREFERRED OPTION AND REASONS FOR RECOMMENDATIONS

 

4.1     The committee is asked to note this report.  The report details the external auditor’s plan for ensuring the delivery of the audit opinion and value for money conclusion by the end of December 2022 and notes the significant risks identified, the results of the work undertaken to date and the anticipated audit fee.  It is considered appropriate for the committee to receive this information at this time.

 

4.2     The scale audit fee set by Public Sector Audit Appointments Ltd (PSAA) for 2021/22 is £41,666 for Maidstone Borough Council. However, the total fee is £64,666, including a further £14,000 for impact of revised accounting standards and requirements, and £9,000 for the Value for Money work. The amounts above and beyond the scale fee are subject to agreement by PSAA, who will give the Council the opportunity to make representations about the additional charges.

 

 

5.       RISK

5.1     This report is presented for information only and has no decisions which give rise to risk management implications.

 

 

6.       CONSULTATION RESULTS AND PREVIOUS COMMITTEE FEEDBACK

 

6.1     No consultation has been taken in relation to this report.

 

 

7.       NEXT STEPS: COMMUNICATION AND IMPLEMENTATION OF THE DECISION

 

7.1      Next steps are outlined within Appendix 1.

 

 

 

8.        REPORT APPENDICES

 

·         Appendix 1: Maidstone Borough Council Audit Plan

 

 

9.        BACKGROUND PAPERS

 

None