Issue - meetings

Report of the Director – Finance and Corporate Services

Mr Surridge from Mazars, the Council’s External Auditors presented the Council’s External Audit Annual Plan, which summarised the approach to External Audit activity with regard to the final accounts process and value for money arrangements for the financial year 2023/24.

Mr Surridge referred to Mazar’s responsibilities as the External Auditor, with five key areas as detailed on page 80 of the report, which included:

·                  Audit opinion

·                  Internal Control

·                  Fraud

·                  Wider reporting and electors’ rights

·                  Value for money

Ms Norman from Mazars referred to the operational side of the Audit Plan and confirmed that the planning, risk assessment and interim phases had been completed, with the fieldwork stage due at the end of June, and the audit opinion hopefully given in September. The Group noted the three main risks, which were common for all district councils:

·                  Management override of controls

·                  Devaluation of the LGPS defined benefit pension

·                  Valuation of land and buildings

Mr Surridge referred to page 94 of the report and the value for money arrangements, and advised that as External Auditors, Mazar’s responsibility was to follow the Code of Audit Practice, which defined what was required to ensure financial sustainability, and it would involve checking the Council’s financial plans and processes and its governance arrangements. It would also look at improving economy efficiencies and effectiveness, which involved looking at how performance management worked and how the Council worked with key partners. Mr Surridge confirmed that this was a live process, and currently no areas had been identified where a ‘deep dive’ would be required. Reference was made to the substantial increase in audit fees since last year, and the Group was advised that the fees were set by an independent body and Mr Surridge concluded by confirming that Mazars was independently appointed to undertake the audit.  

Councillor Birch asked which body set the fee, and Mr Surridge advised that the Council had opted into a framework appointment by Public Sector Audit Appointments (PSAA), which ran a contracting round, and bid and allocated pieces of work to different firms. As part of that process, PSAA determined a scale fee, to deliver the entire contract, which resulted in a level of subsidy. The Director – Finance and Corporate Services advised that the public sector audit market was currently in a challenging state, and was a high risk market, and there were issues recruiting auditors, and all that led to a degree of pressure. PSAA had undertaken a procurement exercise, and the increase for Rushcliffe was very similar to that for other councils, and the Group was advised that if the Council spent time and money undertaking its own procurement exercise, it would not result in cheaper fees. 

Councillor Regan referred to Community Infrastructure Levy (CIL) and Section 106 monies and asked at what point did the Council evaluate the erosion through inflation, given that those funds could not be accessed until phases were completed, and he asked if anyone reviewed the effectiveness of the CIL and Section 106 funds at the  ...  view the full minutes text for item 6