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 2024/25 as well as presenting the latest revised version of the statement of accounts. Grant Thornton anticipates providing an unqualified opinion on the financial statements for the council.

Barrie Morris, Katie Whybray and Adams Azubilla, representing Grant Thornton, the Council’s External Auditor (EA) and the Assistant Chief Financial Officer (CFO) 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 EA representatives presented a comprehensive summary of each section of the External Audit findings report on the Council’s Statement of Accounts 2024/25 (Appendix 1). It was noted that there was nothing significant to bring to the Committee’s attention. Although the audit was mainly complete, a final version of the report would be presented after a final review of the financial statements. Although the EA was not yet able to issue an unmodified audit opinion due to a previous year’s backstop-related disclaimed audit opinion, the Council was in a good position in rebuilding assurance going forward. The EA thanked the Assistant CFO and his team for improvements made in supporting the audit process this year.

It was noted that the executive summary of the covering report contained a typographical error in stating ‘anticipates providing an unqualified opinion’.

The EA representatives responded to questions and comments on the impact of the disclaimed audit opinion in 2022/23. Members sought assurance on the steps being taken by the EA and the Council to support the local audit reset and recovery plan and asked at what point an unmodified audit opinion could be expected. The EA confirmed the timescales for signing off this year’s audit and explained that for next year the aim was to complete the process in a more timely manner during November. The EA was working with the Ministry of Housing, Communities and Local Government (MHCLG), the Council and the soon to be Local Audit Office on the work required to reach an unmodified position. Although sufficient assurance to reach this position may not be achieved in time for the 2025/26 audit, the Council was better placed than many councils, having only received one disclaimed audit opinion followed by two years of audit assurance. It was noted that the MHCLG had provided some grant funding to the Council to support its work to rebuild assurance. The EA explained in more detail its commitment to local audit recovery and supporting those affected by backstop related disclaimers.

The EA representatives also responded to questions and comments on the valuation of the pension fund liability and the impact of the asset ceiling (IFRIC 14). Members sought assurance on the assumptions made by the Council’s appointed actuary in carrying out the pension fund valuation. The EA confirmed that following a communication error this year the Council was now clear about what it needed to ask the actuary to include in its review. The EA explained the reason for IFRIC 14 - there being a difference between the current value of assets in the pension fund and future liabilities and a need to adjust the asset base to reflect the cost of future liabilities which  ...  view the full minutes text for item 81