Issue - meetings

Sophia Brown, Key Audit Partner from Grant Thornton, the External Auditor, presented a report providing an update on progress with auditing the 2021/22 Statement of Accounts drawing attention to the key areas of outstanding work which were audit sample testing; supporting information from the Council’s external valuer in connection with work on Property, Plant and Equipment and investment property revaluations; and ‘hot review queries’ which required further work by management to clarify the position.

Ms Brown explained that following the drafting of the progress report she and Trevor Greenlee, the Engagement Manager had met with the Director of Finance, Resources and Business Improvement and the Head of Finance to discuss how the audit could be progressed further particularly in the area of valuations.  As a result, the Council had facilitated a meeting with the external valuer which would take place the following day.  The External Auditor was aiming to conclude the audit in April 2023, ahead of starting work on NHS accounts, and to report their findings to the July 2023 meeting of the Committee.  Subject to completion of the work on the 2021/22 audit, the aim was to commence planning work on the 2022/23 audit in July 2023.

In response to questions, Ms Brown explained that:

·  In terms of time frames and audit planning, it was important to set realistic and achievable targets to give the best chance of getting the work done in a timely manner to the quality necessary to meet auditing standards.

·  Grant Thornton now had a stable team in place for the Maidstone audits.

·  A review would be undertaken at the end of March to identify the areas to be focused on to get the fieldwork complete.

Concern was expressed about the delay in completing the 2021/22 audit and that Grant Thornton would stop work across the whole local government sector to enable it to move on to NHS accounts.

The Committee discussed the Audit and Risk Assurance Committee Effectiveness Tool published by the National Audit Office (NAO) to support Audit Committees in assessing their effectiveness. 

The Director of Finance, Resources and Business Improvement explained that this was a matter for the Executive to consider in the context of other things it might do; for example, the Local Government Association had a process of corporate peer challenges which was another way to assess the Council’s performance more broadly than just in terms of audit.  He would raise the matter with the Executive. 

The Head of Mid-Audit Partnership undertook to consider the NAO’s guide when engaging with the Committee on its Annual Report to the Council on its role and effectiveness.

RESOLVED:  That subject to the points raised during the discussion, the External Auditor’s progress report and sector update, attached as Appendix 1 to the report of the Head of Finance, be noted.