Issue - meetings

As part of the external auditor’s risk assessment and audit planning for 2020/21 they are required to make enquiries to “those charged with governance” of management processes and the Authority’s oversight of these processes, including material accounting estimates.

The appendices of this report set out the management processes and accounting estimates relevant to the 2020/21 audit for consideration and approval by the Audit and Governance Committee.

Matt Filmer, Acting Assistant Chief Financial Officer presented a report, a copy of which had been circulated to each Member and a copy of which appears as Appendix 'A' to these Minutes in the Minute Book.

As part of the external auditor’s risk assessment and audit planning for 2020/21 they were required to make enquiries to “those charged with governance” of management processes and the Authority’s oversight of these processes, including material accounting estimates.

The appendices of the report set out the management processes and accounting estimates relevant to the 2020/21 audit for consideration and approval by the Audit and Governance Committee.  The Committee was informed that appendix A set out questions to a number of key areas such as fraud and accounting estimates and management had provided responses to these questions.  The intention of the report was to give the Committee the opportunity to confirm its understanding and agreement with the responses.  Members were informed of the key areas which included fraud how the Council detect and prevent fraud, internal policies and controls and how instances of fraud were communicated to the Audit and Governance Committee. There was a series of questions relating to laws and regulations and how the Council complies, an example of this was the sign off of reports for Cabinet and Council by the Monitoring Officer to ensure compliance with legislation. The Acting Assistant Chief Financial Officer referred to related parties, where there may be an arrangement between two parties who have a pre-existing relationship so their may be a conflict of interest.  He highlighted that a good example of a control was the declaration of interests which all Members and senior officers have to make and sign.  The Acting Assistant Financial Officer reported that there was a series of questions on the Council’s internal controls over accounting estimates.  He explained that the auditing standards had been significantly enhanced as a result of some of the public company failings that had been in the media.  The Committee was informed that the accounting estimates were made in the statements and the reason for the auditors scrutinising the estimates in more detail was because they carry a level of risk due to a high level of uncertainty or a significant level of judgement.  The Acting Assistant Chief Financial Officer explained that to help the Committee understand the accounting estimates appendix B to the report sets out the material accounting estimates that were in the financial statements.  The Committee was advised of the controls in place to mitigate these risks. 

The Committee was asked to note on page 57 of the agenda pack that the reference to Covid was no longer applicable and should have been deleted.  

RESOLVED that:-

(a)           the responses provided by management to the external auditors as set out in Appendix A be approved; and

(b)           the approach to accounting estimates in the financial statements as set out in Appendix B be approved.

Voting: Unanimous