Issue - meetings

Grant Thornton resigned with effect from 4 June 2020 as the auditors for the wholly owned council companies, Bournemouth Building and Maintenance Limited (BBML) and Seascape Group Limited (SGL) including its subsidiaries.

While Grant Thornton will continue as BCP Council’s external auditors, they have stated it is not operationally efficient for them to continue as the companies’ auditors as a different audit team was required to the local public sector audit team.

A new auditor must therefore be appointed for the companies and a procurement exercise has been conducted.

It is a requirement of the Shareholders Agreement for both BBML and SGL that authority is sought from the council as sole shareholder for the appointment of a new auditor.

Company audits must be carried out in accordance with UK Generally Accepted Accounting Practice and applicable Financial Reporting Standards. The proposed auditor, Hixsons Limited, was selected as they supplied the most cost effective quote to comply with these requirements.

RESOLVED that the appointment of Hixsons Limited as the external auditor for Bournemouth Building and Maintenance Limited (BBML) and Seascape Group Limited (SGL) be approved.

Voting: Unanimous

Portfolio Holder: Finance

Reason

It is a requirement on the companies to provide audited accounts in accordance with Section 475 of the Companies Act 2006.

It is a requirement of the Shareholders agreement for both BBML and SGL that authority is sought from the council as sole shareholder for the appointment of a new auditor.

The Portfolio Holder for Finance presented a report, a copy of which had been circulated to each Member and a copy of which appears as Appendix 'I' to these Minutes in the Minute Book.

Cabinet were advised that Grant Thornton had resigned with effect from 4 June 2020 as the auditors for the wholly owned council companies, Bournemouth Building and Maintenance Limited (BBML) and Seascape Group Limited (SGL) including its subsidiaries, and that while Grant Thornton will continue as BCP Council’s external auditors, they have stated it is not operationally efficient for them to continue as the companies’ auditors as a different audit team was required to the local public sector audit team.

In relation to this Cabinet were informed that a new auditor must therefore be appointed for the companies and that a procurement exercise had been conducted. Further to this Cabinet were advised that it is a requirement of the Shareholders Agreement for both BBML and SGL that authority is sought from the council as sole shareholder for the appointment of a new auditor.

In concluding the Portfolio Holder advised that company audits must be carried out in accordance with UK Generally Accepted Accounting Practice and applicable Financial Reporting Standards, and that the proposed auditor, Hixsons Limited, had been selected as they supplied the most cost effective quote to comply with these requirements.

RESOLVED that the appointment of Hixsons Limited as the external auditor for Bournemouth Building and Maintenance Limited (BBML) and Seascape Group Limited (SGL) be approved.

Voting: Unanimous

Portfolio Holder: Finance