Issue - meetings

The External Auditor, Grant Thornton for BCP Council, is required to consider whether the Council has put in place proper arrangements to secure economy, efficiency and effectiveness its use of resources.

Auditors are required to report their commentary under specific criteria, namely financial sustainability, governance and improving economy, efficiency and effectiveness. They are required to report on any significant weaknesses they identify.

The External Auditor has produced a 2021/22 and 2022/23 Annual Report which has identified the following weaknesses:

Five significant weaknesses have been identified and have resulted in 5 key recommendations being made.

A further 13 improvement recommendations have been made. The Council has provided the External Auditor with management responses to all the recommendations.

The External Auditor has made a contextual comment that the May 2023 election has resulted in a change of political administration and an apparent change in financial strategy which will set a new tone from the top and will be an opportunity to address some of the issue raised in their report.

The Chairman introduced the 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.

Following the introduction from the Chairman the External Auditor provided further background.

Members were advised that the External Auditor, Grant Thornton for BCP Council, is required to consider whether the Council has put in place proper arrangements to secure economy, efficiency and effectiveness its use of resources.

In relation to this Members were advised that auditors are required to report their commentary under specific criteria, namely financial sustainability, governance and improving economy, efficiency and effectiveness. They are required to report on any significant weaknesses they identify.

Members were informed that the External Auditor had produced a 2021/22 and 2022/23 Annual Report which had identified the following weaknesses:

Five significant weaknesses have been identified and have resulted in 5 key recommendations being made.

A further 13 improvement recommendations have been made. The Council has provided the External Auditor with management responses to all the recommendations.

The External Auditor has made a contextual comment that the May 2023 election has resulted in a change of political administration and an apparent change in financial strategy which will set a new tone from the top and will be an opportunity to address some of the issue raised in their report.

Members of the Audit and Governance Committee discussed the report specifically around the identified weaknesses and the proposed improvements.

RESOLVED that: -

(a)              the findings, recommendations and management comments in relation to the External Auditor’s Annual Report 2021/22 and 2022/23 (Value for Money arrangements report) were noted; and

(b)              the unusual approach of reporting both the 2021/22 and 2022/23 years as an agreed pragmatic approach to resolve and ‘catch-up’ on recent historic delays within the external audit process was noted.

Voting: Unanimous