Issue - meetings

The attached report set out the findings of the council’s external auditor following their audit of the council’s statement of accounts for 2021/22 as well as presenting the latest revised version of the statement of accounts. The key points to note are:

·        Grant Thornton anticipates providing an unqualified opinion on the financial statements for the council; and that

Grant Thornton anticipates issuing a qualified “except for” value for money conclusion due to the findings of children’s services, the councils financial sustainability and governance.

Mr Peter Barber, representing Grant Thornton, the Council’s External Auditor, 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.

Mr Barber advised that the External Auditor anticipated providing an unqualified opinion on the financial statements for the Council following its audit of accounts 2021/22. He explained that the External Auditor concurred with the Council’s decision not to adjust the updated financial statements to reflect the overstatement in relation to the Council’s IAS19 liability, an issue which had arisen following receipt of the Dorset Pension Fund auditor’s response. He confirmed that there were no other significant issues since the statements were last considered by the Committee in November 2023.

Mr Barber explained that the External Auditor anticipated issuing a qualified “except for” value for money conclusion, due to the findings of Children’s Services, the Council’s financial sustainability and governance, as detailed in the report. The report also set out the final audit fee for 2021/22.

Mr Barber and the Deputy Chief Financial Officer (CFO) provided the following information in response to questions from the Committee:

• It was not unusual to include Management override of controls as a significant risk in public sector audit plans. There were no significant concerns to report.
• The Five Parks Charity was inherited from Bournemouth Borough Council and was included due to the high value of its assets
• The updated valuations of land and buildings referenced in the report had been reflected in the revised accounts
• The External Auditor had challenged the Council’s approach to funding the Transformation programme using Housing Revenue Account (HRA) funds and had not found the amount transferred unreasonable.
• The External Auditor had previously reported on value for money in November 2023 and recommended the need for clear milestones in relation to the delivery of Transformation.
• The follow up of prior year recommendations would be followed up.

As previously reported the External Auditor had agreed with the Council to ‘backstop’ the 2022/23 opinion audit to enable a prompt start to the 2023/24 audit work. This arrangement was subject to final guidance from Government which although now delayed by the General Election on 4 July 2024 was still expected to be forthcoming.  The Committee was assured that Officers were on track with the deadline to provide draft statements for 2023/24 and that the External Auditor was committed to a timely delivery of audit findings, being fully aware of the challenges involved.

RESOLVED that:

(a) the anticipated audit opinion and findings of the Council’s external auditor included as Appendix 1 to this report, following the audit of accounts 2021/22, be noted;

(b) the 2021/22 financial statement included at Appendix 2 be approved.

(c) the signing of the Statement of Responsibilities and the Letter of Representation by the Chair of the Audit & Governance Committee and the S151 Officer once the audit work is complete, be approved.