Issue - meetings

Grant Thornton, as the Council’s appointed External Auditors, have produced a report (Appendix A) which provides an update to Audit & Governance Committee on their progress to date in delivering their responsibilities.

The report states that the proposed target completion date for their fieldwork was 30 November 2021 and that they aimed to give their opinion on the financial statements by the end of December 2021. However a number of matters have arisen that have resulted in delay to this timetable. Reasons for the delay are included in the report and a revised date for the sign off of the financial statements of February 2022 has been set.

Progress has been made on the certification of claims and returns for the Council as detailed in the report.

The report states that the Financial Reporting Council (FRC) published its annual report on 29 October 2021 setting out the findings of its review of the work of local auditors. The FRC described Grant Thornton’s improvement in audit quality as an ‘encouraging response by the firm to the quality findings reported in the prior year’.

The report also includes a summary of emerging national issues and developments that may be relevant to the Council.

The External Auditor, Grant Thornton, 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.

The report provided an update for the Committee on progress to date in delivering Grant Thornton’s audit responsibilities and stated that the proposed target completion date for their fieldwork was 30 November 2021 with the aim of providing their opinion on the financial statements by the end of December 2021. It was, however, reported that a number of matters had arisen as part of the complex audit that had resulted in delay to the timetable. The reasons for the delay were set out in the report with a revised date for the sign-off of the financial statements set for February 2022. The Auditors confirmed that the delay was the result of matters which were entirely outside of the control of the Audit and Governance Committee.

Although good progress was reported to have been made, the areas of outstanding work for the External Auditor were Valuation of property and plant, Journals and Payroll and Income. The result of the external audit of the Pension Fund was also awaited. There were specific questions from the Committee about each of these audit areas and, in response to questions, reassurances were provided that the audit had not identified fraud or malpractice.

The expectation was that the completed audit would be presented to the meeting of the Committee on 17 March 2022. Grant Thornton undertook to inform the Chairman of the Committee if it became apparent that there was likely to be any further delay in order that the Chairman could keep the wider membership of the Committee informed and updated about progress.

The Committee also received the regular summary of emerging national issues and developments that may be relevant to the Council and were advised that the Financial Reporting Council (FRC) had published its annual report on 29 October 2021 setting out the findings of its review of the work of local auditors. The External Auditor brought to the attention of the Committee the FCR’s description of Grant Thornton’s improvement in audit quality which FCR described as an ‘encouraging response by the firm to the quality findings reported in the prior year’.

RESOLVED that the Audit and Governance Committee notes the External Auditor’s progress to date in delivering their responsibilities and the sector update provided.

Voting: Unanimous