Agenda item

To consider and comment on the update regarding the 2019/20 Audit Findings Report Action Plan.

The Committee received an update on the progress the Council had made against the action plan which the external auditor, Grant Thornton, had produced as part of its Audit Findings Report for 2019/20.

It was noted that since the meeting in September, the majority of actions were being progressed or had been implemented. Several actions still had an amber RAG rating due to the following concerns:

·      Progress on procuring a new asset management system had been delayed due to a lack of capacity within the procurement team. The team was in the process of appointing temporary staff which was to be concluded in the next couple of weeks.

·      Progress on a number of actions, particularly the recommendations concerning IT controls, was dependent on the implementation of Oracle Fusion, which had been delayed. Alternative actions were being investigated and next steps were being agreed with Grant Thornton.

It was requested that the Committee be updated on the progress in addressing the unresolved issues on the action plan at the next meeting.

Members were assured that Grant Thornton was being informed of the progress made in addressing the action plan.

It was clarified that the issue identified around IT controls was specific to the implementation of Oracle Fusion finance system.

Regarding council property records, it was clarified this was an ongoing piece of work and part of Grant Thornton’s audit review. Members were assured that implementation of the new asset management system together with the work commissioned from an external supplier to review council’s records would contribute to an improved robustness and accuracy of council’s asset records.

The external auditors, Grant Thornton, provided their update on the Audit Findings Report Action Plan in connection with the 2019/20 Statement of Accounts and the 2020/21 Statement of Accounts.

Grant Thornton had not issued an opinion on the 2019/20 Statement of Accounts yet, due to ongoing work on the internal consistency of the accounts and the capital financing limit.

Auditors stated assurance had been given by the council’s finance team that a revised 2019/20 Statement of Accounts, together with a record of all adjustments that had been made, would be received by the end of the week. Auditors received an update on the capital financing requirement from the council. Auditors needed to examine these documents before they could issue an opinion.

In relation to 2020/21 Statement of Accounts, auditors had received a draft set of accounts. Auditors stated assurances had been given that the final draft of 2020/21 accounts would be available within the next couple of weeks. The receipt of final draft would enable auditors’ work on 2020/21 to be concluded.

Grant Thornton was to produce a value for money conclusion once work on 2020/21 statement of accounts had been finalised. A draft of the Governance Review was to be issued once details were agreed with council officers.

The following was noted in response to comments and questions:

·      Finance team was currently undertaking extra quality assurance checks on 2020/21 accounts before the final draft could be passed to external auditors. This was to ensure there was no extensive audit delays as with the 2019/20 accounts.

·      The Director of Finance explained that 2019/20 Statement of Accounts was brought before the Committee in September 2021 and approved (Minute No. 49/21). At that point, the finance team was of the view they were complete and ready for the opinion of external auditors.

·      Queries raised following the September meeting resulted in work continuing on the 2019/20 accounts. Subsequently, work on 2020/21 accounts was paused, so 2019/20 statement of accounts could be finalised, and opinion could be given by Grant Thornton.

·      Work on 2019/20 accounts was to be completed by 20 October 2021 and the final draft of 2020/21 accounts was to be completed by the end of the following week.

·      Members proposed that deadlines of submitting accounts in future years be made available to Councillors and published online to ensure transparency.

         Resolved that the Audit Findings Report 2019/20 is noted.