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 includes an update on both their 2020/21 and 2021/22 audit work.

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

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 'A' to these Minutes in the Minute Book.

Members were introduced to Mark Bartlett of Grant Thornton who would be taking over from Sam Harding as Engagement Manager and the Committee thanked Sam Harding for her contribution to auditing of the BCP accounts.

The Committee received an update on the latest position regarding completion of the 2020/21 BCP Opinion Audit which continued to be delayed due to the previously reported issues around infrastructure asset valuation and sign-off of the Pension liability by Dorset Pension Fund Auditors. It was reported that Auditors of other Councils had also identified similar issues relating to Pension Funds.

The Committee was, however, advised of material progress in resolving these issues with a CIFA solution to the infrastructure issue now expected to be forthcoming in December. This would enable an Opinion to be issued in the New Year although the detail of how to achieve that remained the subject of discussion. Additionally, the letter of assurance relating to the Dorset Pension Fund was reported to have been eventually received on 10 October, although the letter had given rise to a set of additional issues which could potentially impact upon the accounts and which needed to be explored by the Auditors. In the case of the BCP Council share of the Pension Fund this included a potential uplift in valuation.

The Chairman reassured the Committee that meetings at senior Officer and Member level had continued in an effort to resolve this and the required letter had, in fact, been received following the most recent meeting on 20 September 2022.

In the meantime, formal elector objections to the accounts were all reported to have been considered and dismissed.

The External Auditors explained that work had commenced now on the 2021/22 audit although the Auditors were aware of current capacity issues within the Council which might require priority to be placed upon outstanding issues emerging from the 2020/21 Accounts. Audit deliverables for the 2020/21 and 2021/22 were set out and scheduled.

Members were reminded that the External Auditor’s work towards the ‘Value For Money’ conclusion had been discussed separately by the Committee at its meeting on 20 October 2022. It was noted that further reports would be submitted as necessary as clarity emerged as to the Council’s adopted way forward in response to the financial challenges that it currently faced.

External Audit fees for the 2020/21 audit work had not yet been determined but Grant Thornton anticipated that the considerable additional work on the audit would need to be reflected in the fee level following discussion, as required, with the Council’s Section 151 Officer.

The Auditors responded to a range of detailed questions from the Committee.

The Committee was provided, by means of a Sector Update, with a summary of emerging national issues and developments that might be of relevance to the Council.  ...  view the full minutes text for item 146