Mr Paul
Dossett of Grant Thornton presented the External Auditor’s
report providing an update on progress with the audit of the
2021/22 Statement of Accounts and a summary of emerging national
issues and developments of relevance to the local government
sector.
It was
noted that various accounting issues had held up the completion of
the 2020/21 audit; for example, the appropriate accounting treatment for construction costs relating
to the Brunswick Street and Union Street housing
developments.
Amendments had been made to the accounts as a result of this work
and these would need to be worked through into the 2021/22
accounts. The process had been reversed
for the 2021/22 audit so that the technical accounting issues are
addressed up front. It was hoped that
the work would be completed by March, and the External Auditor was
working with the Council to achieve that.
In response to a question about the stability of the
workforce, Mr Dossett explained that there were still major
recruitment and retention challenges.
The audit profession was heavily regulated, and it was difficult to
recruit people from within this country. Grant Thornton was recruiting a lot of people from
abroad, but it was a slow process and the market was not yet stable
in terms of audit being a sought after, long-term
profession.
RESOLVED: That the
External Auditor’s progress report and sector update,
attached as an Appendix to the report of the Senior Finance Manager
(Client), be noted.