Issue - meetings

The Senior Finance Manager (Client) introduced his report setting out Grant Thornton’s planned approach to completing the audit of the 2021/22 financial statements and Value for Money Conclusion.  It was noted that:

·  The report from Grant Thornton covered several areas including significant risks identified in their work to date, accounting estimates and the materiality limit they were planning to adopt for the audit this year.

·  The report also included details of the anticipated audit fee which was £64,666 (£41,666 for the scale audit fee set by Public Sector Audit Appointments Ltd (PSAA), £14,000 to cover the impact of revised accounting standards and requirements and £9,000 for the Value for Money work).  The amounts above and beyond the scale fee were subject to agreement by PSAA, and the Council would be given the opportunity to make representations about the additional charges.

Mr Paul Dossett of Grant Thornton advised the Committee that:

·  The Audit Plan for 2021/22 covered the risks identified and Grant Thornton’s responsibilities, and it was very similar to last year’s Audit Plan and to those of other local authorities.  Grant Thornton was required to set the materiality limit, which had risen slightly to reflect changes in expenditure in year, and to highlight the risks.  For local government audits, the main risks related to investment property valuations and management over-ride of controls which involved the auditing of estimates and journals.

·  The Audit Plan also covered Grant Thornton’s approach to the Value for Money work for 2021/22.  The 2020/21 Value for Money assessment did not identify any significant weaknesses.  Auditors were required to consider whether the Council had put in place proper arrangements to secure economy, efficiency and effectiveness in its use of resources.

·  The only new piece of work this year related to International Standards on Auditing (UK) 315 which required Grant Thornton to obtain an understanding of the information systems relevant to financial reporting to identify and assess the risks of material misstatement.

In response to questions:

Mr Dossett advised Members that:

·  In terms of tasks, timelines and staffing levels, a lot of the background planning had been done.  The second main task was to audit the financial statements which required audit and sample testing.  Grant Thornton had started some of the 2021/22 audits, but none had been signed-off yet.  The 2021/22 audits were proving to be more difficult than previously, not just in terms of audit resources but in terms of accounts being prepared in time.  From a resources point of view, there would continue to be challenges.  To complete an audit to the level and depth that was now required was very time-consuming on the part of Grant Thornton.  The aspiration was to proceed with the work as soon as possible, but no guarantees could be given as to when it would be completed.  Even since work commenced on the first round of audits for this year at the beginning of July, there had been a significant turnover in staff and replacing them took time.  All other  ...  view the full minutes text for item 40