Issue - meetings

The report of the Director – Finance and Corporate Services is attached.

Mr David Hoose, from Mazars, the Council’s external auditor presented the External Audit Annual Plan, which summarised Mazars’ approach to external audit activity with regards to the final accounts process and to value for money work in relation to the 2020/21 financial year.   

Mr Hoose referred to the changes that had taken place in respect of Mazar’s audit approach in relation to the key risks and audit judgements highlighted in section 4 of the report and confirmed that there was little change from last year.  The Group was asked to note that a significant risk had been identified regarding the Covid-19 grants received by the Council, and given the complexity and new funding streams, those areas would be carefully monitored and accounted for.   The Group also noted the significant change in approach to the monitoring and reporting of value for money for this year, with a more detailed reporting regime to the Council.

Members of the Group noted that the risks identified were similar to those identified in previous years; however, reference was made to the 60% increase in fees costs highlighted in the report and questioned if the uncertainty disclosures and costs would reduce as the Covid pandemic receded.  The question of risks related to pensions was also raised and officers were asked if anything could ever be done to mitigate those risks, given that they appeared the same each year.

Mr Hoose advised that in respect of pensions, this remained a challenge and it was unlikely to change, unless there was a change in regulations.

The Director – Finance and Corporate Services advised that there was uncertainty in respect of fees, due to Covid, and a national consultation was currently underway.  It was hoped that fees would not increase anymore, as the increase had been significant, and that had been due in part to changes in audit standards that had led to additional work for the auditors.  It was acknowledged that it was important to ensure value for money from the auditors and the Group noted that the Council and Mazars would continue to work together to ensure that fees were kept to a minimum, audits were as efficient as possible ,whilst noting the additional workloads and pressures being placed on the auditors,  as outlined in the report.    

The Chairman referred to the trivial threshold for errors and asked if it had varied much over recent years, and Mr Hoose advised that they had remained consistent.

It was RESOLVED that the External Audit Annual Plan be accepted.