Decision details

Neil Harris from Ernest & Young (E&Y) provided an update to Members on the External Audit of Accounts for 2019/2020, together with proposals for the External Audit of the 2020/21 Accounts.

In response to a Member’s question regarding audit capacity, Neil advised that this was a national problem across all Public Sector Audit suppliers, exacerbated by the increasing strain on Local Authority Finance Teams.  However, the Ministry of Housing, Communities and Local Government (MHCLG) would be undertaking a national root and branch review of the issue.

In reply to a further question, the Strategic Director (CF) confirmed that the previous requirement had been for the unaudited accounts to be published by the end of May each year, to enable the external audit to take place thereafter (SBC had met this deadline up to 2020).  The existing problems and delays regarding the 2019/20 accounts had been an unprecedented combination of staff turnover, a shortage of finance professionals and the impact of the Covid pandemic.

As there were still a number of outstanding queries on the 2019/20 accounts, together with the need to allow time for consultation and final review, it was confirmed that the Audit Committee/Statement of Accounts Committee meeting scheduled for 29 September 2021 would be cancelled.

It was RESOLVED that the verbal progress report on the external audit of the SBC accounts 2019/20 be noted.