Agenda item

This report presents the final audited Statement of Accounts for 2023/24. The Committee is asked to review and approve the Accounts considering any comments received from the Audit and Governance Committee.

The report also contains the Audit Findings Report received from Grant Thornton and the Management Letter of Representation for review.

The Chair welcomed Mr Peter Barber, representing Grant Thornton, the Council’s External Auditor, to his penultimate meeting of the committee. The Chair and other members thanked Mr Barber for his diligence and his assistance to members and officers during challenging times and wished him well for the future.

Mr Barber presented the report, a copy of which had been circulated to each Member and a copy of which appears as Appendix 'B' to these Minutes in the Minute Book. The report included the final audited Statement of Accounts for 2023/24 for review and approval. Mr Barber confirmed that following the completion of work, Grant Thornton was able to issue its audit opinion in time for 28 February 2025 (the backstop date). As previously explained the audit opinion would include a disclaimer because of the limitations of assurance on the opening balances due to the prior year audit (2022/23). However, the positive audit year for 2023/24 provided a good platform for receiving full assurance for future years.

Mr Barber explained in more detail the main headlines in relation to the final audit findings report (ISA 260) included at appendix 1. Members were assured that none of the adjustments required had changed the Council’s outturn position and useable reserves. The time spent completing the audit opinion was indicative of the number of challenges faced and this was reflected in Grant Thornton’s fee. Mr Barber highlighted the significant risks identified in the audit plan. He suggested that the Council may wish to focus on the valuation of land and buildings as an area historically prone to errors. He explained the reasons for the delay in certifying the closure of the 2023/24 audit and it was noted that these did not have a material effect.

Mr Barber was asked whether the delay in receiving Dorset County Pension Fund auditor’s letter of assurance could be avoided in future, particularly now Grant Thornton was the Pension Fund’s external auditor. He confirmed that he was confident that all parties would be working together to ensure the letter was submitted at an earlier stage than this year. He explained in more the detail the reasons for challenging the approach taken by the valuer in applying different land values per hectare to developed and non-developed land. He was also asked about the impact of the backstop arrangements on future audit years and advised that although there was no definitive answer it may take a number of years to unwind.

Members discussed whether it was possible for the errors in the valuation of land and buildings to be addressed, either with a ‘deep dive’ exercise or by adding to the corporate risk register or by aiming for a more joined up approach between external audit, the valuers and the Council. The Chief Financial Officer explained that this area was not an exact science and would always throw up some discrepancies as a result of different opinions and approaches. It was noted that the nature of local government assets was inherently unusual. Significantly, the corrections required had not affected the Council’s outturn position or useable reserves.

RESOLVED that:

a)    the final 2023/24 final audit findings report (Appendix 1) and the final 2023/24 Auditors Annual Value for Money Report (Appendix 2) be noted

b)    Approval be given for the Chair of Audit and Governance and the S151 Officer to sign the Statement of Responsibilities, Letter of Representation (Appendix 3) and Statement of Accounts 2023/24 (Appendix 4).

Voting: Unanimous