Agenda item

Grant Thornton, as the Council’s appointed External Auditors, have produced a report (Appendix A) which provides an update to Audit & Governance Committee on their progress to date in delivering their responsibilities.

The report includes an update on their 2024/25 audit work. Key points of note are:

·     Financial Statements Audit 2024/25 – Grant Thornton aims to present their Audit Findings Report for 2024/25 to the November meeting of the Audit & Governance Committee.

·     Value for Money – Grant Thornton plan to report their Value for Money arrangements findings in their interim Auditor’s Annual Report at the November Audit & Governance Committee.

The report also includes a summary of emerging national issues and developments that may be relevant to the Council.

Barrie Morris and Katie Whybray of Grant Thornton, the Council’s External Auditor (EA), 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 provided an update on Grant Thornton’s 2024/25 audit work. It was noted that the Audit Findings Report for 2024/25 and the Value for Money arrangements findings in the interim Auditor’s Annual Report were due to be presented to the Committee at its meeting on 27 November 2025. The report also included a summary of emerging national issues and developments that could be relevant to the Council. It was confirmed that the audit certificate had now been issued.

The EA representatives and the Chief Financial Officer (CFO) provided the following information in response to questions on the report:

• The EA explained that a key piece of work was to seek assurance over current year transactions, it was hoped to roll out pilot schemes to assist in undertaking this work but this may not be until next year.
• The EA was unable to start its review of housing benefits as working papers had not been received. The EA was in discussion with the Council to try and address this, otherwise it could cause delay.
• The EA confirmed that the audit review for the revaluation of land and buildings was in progress, with no significant issues identified as yet
• The CFO confirmed that the risk associated with proposed changes to business rates had been reflected in the latest Medium Term Financial Plan (MTFP) reports, subject to the final position being set out in the provisional Local Government Finance Settlement .
• In terms of national challenges for councils and comparative data, the EA explained that this would be covered further in the Value for Money report. The EA noted the proactive work taking place.

There were a number of questions around the Council’s debt position. This was set out in the MTFP report. The Council was ‘mid range’ when benchmarked against other councils. The Council’s debt position continued to increase due to the Dedicated Schools Grant (DSG) deficit and the requirement to charge interest costs to the General Fund. The Council had lobbied the Government to change this requirement on a number of occasions and the CFO agreed to reflect on the suggestion that the Committee add its weight to this. It was also noted that the short-term borrowing arrangement for the DSG had been based on Government advice. In terms of how much the debt position related to council tax, the Government was clear in its position that councils should be funded locally through council tax with an expectation that the 4.99% maximum permitted increase be applied for the next three years. It was also noted that the increase in employers’ national insurance contributions took up a significant proportion of the 4.99%

The Portfolio Holder advised that the Council’s overall debt ceiling had been reduced to reflect the Administration’s more risk averse position.

RESOLVED that the Audit & Governance Committee notes the External Auditor’s progress to date in delivering their responsibilities and the sector update provided.

Voting: Agreed with no dissent