Issue - meetings

The attached report sets out the draft findings of the Council’s external auditor following their audit of the Council’s Statement of Accounts 2021/22. The key points to note are:

Financial Statements

·       As at 21 November 2023 the audit is approximately 90% complete.

·       The main area of audit work not concluded is in respect of the IAS19 Pension Fund net liability due to a required response from the auditor of the Dorset Pension Fund.

·       Subject to completion of remaining work Grant Thornton anticipate providing an unqualified opinion on the financial statements for the Council in early 2024.

Value or Money Arrangements

·       VFM work for 2021/22 has been completed, and was separately reported to the Audit & Governance Committee in September 2023.

·       The 2021/22 report included a number of key recommendations as well as a large number of improvement recommendations.

·       Four significant weaknesses in the Council’s arrangements were reported and the external auditor was not satisfied the Council had made proper arrangements for securing economy, efficiency and effectiveness in its use of resources.

Significant Matters

·       A significant number of amendments, issues and control weaknesses were identified during the 2021/22 audit.

The additional time spent gaining assurance over all elements of the financial statements along with significant additional VFM work will be reflected in the final audit fee, to be confirmed once all work has been completed.

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. The report set out the External Auditor’s draft findings following their audit of the Council’s Statement of Accounts 2021/22.

The Committee noted that, as at 21 November 2023, the audit of the financial statements was approximately 90% complete. The main area of audit work not concluded was reported to be in respect of the IAS19 Pension Fund net liability where the required response from the auditor of the Dorset Pension Fund remained outstanding. Subject to completion of this remaining work, however, Grant Thornton anticipated providing an unqualified opinion on the financial statements for the Council in early 2024.

Once again, the Committee expressed it’s frustration with the delay particularly as it was occurring in the same area as in previous audits. Although it was explained that the Pension Fund issues were outside of the Council’s control, reassurances were provided that every effort was being put in by the Auditors, working closely with Officers, to minimise the impact of the delay.

In terms of the Value for Money (‘VFM’) elements of the audit it was reported that the VFM work for 2021/22 had been completed, and separately reported to the Audit and Governance Committee in September 2023. The 2021/22 report had included a number of key recommendations and improvement recommendations.

The External Auditor explained the process for following up on recommendations and the final report would include statements of the Council’s response and details, with targets, of the action proposed to address the recommendations.

The Committee also noted that the additional time spent gaining assurance over all elements of the financial statements along with significant additional VFM work would be reflected in the final audit fee, to be confirmed once all work had been completed.

Subject to receipt of the awaited Pension Fund information and assessment of its impact on the accounts and availability of resource over the Christmas period, the External Auditor anticipated that the final opinion would be ready to submit to the Committee at its January or February meeting but undertook, whatever the situation, to provide an update at the January meeting.

RESOLVED that Audit and Governance Committee notes the anticipated audit opinion and the draft findings of the Council’s external auditor following their audit of the Council’s statement of accounts 2021/22.

Voting: Unanimous