Issue - meetings

Report of the Director – Finance and Corporate Services

Ms Frudd from Mazars presented the Council’s External Audit Annual Plan which summarised the approach to external audit activity with regards to the final accounts process and value for money arrangements for the financial year 2022/23.

The Group were advised of the audit scope, approach and timeline with the expected completion by October 2023. It was noted that the end of year accounts should be reported to the Governance Scrutiny Group at its meeting in September, however due to the Council’s meeting schedules and extra audit pressures this may be pushed back to the November meeting of Governance Scrutiny Group.

Ms Frudd explained the significant risk assessment approach, which identifies risks relevant to the audit of financial statements. The risks identified include:

·       Management override of controls

·       Valuation of net defined benefit liability

·       Valuation of property, plant and equipment

·       Insourcing of Streetwise

The Director – Finance and Corporate Services added that there have been some challenges of the audit and accounting due to increased standards of audit and external audit pressures in respect of the pension audit. However, it was noted that the Council had prepared its draft Statement of Accounts in good time with the view to them being signed off by September 2023.

The Group raised a specific question relating to Streetwise and whether an audit on it now, (only after 6 months being back in the control of the Council), would give a realistic view of its financial performance. Mr Surridge advised the Group that Streetwise moved back to the Council on 1 September 2022 and that audit would take a view over the half year.

It was RESOLVED that Governance Scrutiny Group accept the External Audit Annual Plan.