Issue - meetings

The attached report at Appendix A sets out the work that the Council’s External Auditor, Grant Thornton, plan to undertake for the audit of the Council’s Statement of Accounts in respect of 2021/22.

As part of risk assessment procedures, Grant Thornton are required to obtain an understanding of management processes. A series of questions relating to this and the responses received from BCP Council’s management is included at Appendix B.

Also attached, at Appendix C, is a letter from Grant Thornton regarding commencement of their 2021/22 VFM review.

The External Auditors, Grant Thornton, presented a report, a copy of which had been circulated to each Member and a copy of which appears as Appendix 'B' to these Minutes in the Minute Book.

The report set out the work that the Council’s External Auditor, Grant Thornton, planned to undertake for the audit of the Council’s Statement of Accounts in respect of 2021/22 and explained that the objective was to give an opinion on whether the accounts gave a true and fair view and whether the Council had made proper arrangements for securing economy, efficiency and effectiveness in its use of resources.

The Committee considered the Auditor’s comments on significant identified risks; materiality and ‘Value for Money’ arrangements and was also reminded of their meeting on 20 October where they had considered significant corporate risks.

The Committee was advised that, as part of risk assessment procedures, Grant Thornton were required to obtain an understanding of management processes and the process of Audit and Governance Committee’s oversight. Specifically this was under the headings of General Enquiries of Management; Fraud Risk Assessment; Impact of Laws and Regulations; Related Parties; Going Concern and Accounting Estimates. To inform the process, a series of questions on each of these areas and the responses received from BCP Council management in each case was included within the report for consideration by the Committee. It was explained that the management responses provided a starting point for further external audit work. There also remained the possibility of the opportunity to make further reports to the December meeting of the Committee.

Also attached to the report was a letter from Grant Thornton explaining that due to their 2020/21 ‘Value For Money’ Auditors Annual report only being finalised this month, they were proposing to delay the commencement of their 2021/22 ‘Value For Money’ review until early 2023.

The Auditors responded to detailed questions from the Committee. Assurances were provided that the Auditors were aware of and sighted in terms of the Council’s associated companies such a ‘Future Places’ and the ‘Bournemouth Development Company’. Information was also provided about the reporting of fraud and about the procedure in place for reporting fraud or suspicion of it through the Chief Executive, the Monitoring Officer or the Section 151 Officer. Any fraudulent activity uncovered by the External Auditor would also be reported irrespective of value. In response to questions, the terms and constraints under which the Council could dispose of assets were also set out.

The report also included an analysis of proposed audit fees for 2021/22.

RESOLVED that, Audit and Governance Committee notes the Grant Thornton External Audit Plan 2021/2022 for the Council including, subject to the additional points raised during discussion at the Committee, the management responses informing the audit risk assessment.

Voting: Unanimous