Agenda item

REPORT TO FOLLOW.

The Committee received a report from Azets highlighting the progress of the audit to date for the benefit of those charged with governance, as required by International Standard on Auditing (UK) 260 and the National Audit Office Code of Practice 2020 (the ‘Code’) and associated Auditor Guidance Notes.

Members were advised that Azets would not be able to fully complete the audit, issue their auditor’s report and certify the closure of the audit until the Council’s predecessor auditor had completed their audit for the year ended 31 March 2023.  Once the 2023 audit had been completed, they would need to review the predecessor auditor’s audit file and consider the impact on this audit of any modifications to their auditor’s report.

Azets also advised that they would need to revisit their planning procedures and audit plan to assess whether any additional procedures were required over and above those previously identified in their audit plan.  Should any additional procedures or changes to the plan be required, they would be reported to the Committee. Members noted that the cost of additional work to revisit planning, upon completion of the prior year audits would also be reported.

Azets confirmed that providing the Council met the minimum requirements for producing the 2022/23 accounts (and earlier years), including the statutory inspection period, they anticipated the predecessor audit would have completed their audit by 13 December 2024.

Due to the limited time between that backstop date and the 2023/24 backstop date of 28 February 2025, Azets were therefore unlikely to have time to gain sufficient assurance over opening balances, closing balances and in year transactions and advised that they would need to give a disclaimed opinion for 2023/24.

The Committee were advised of the 2023/24 Planned Procedures including a number of findings where it was not anticipated that assurance would be obtained over the balance in 2023/24.

In relation to Value for Money, the work on the Council’s arrangements for securing this would be completed during the final accounts window.  The Committee was pleased to note that to date no areas of significant weakness had been identified.

Azets reported a number of issues assessed with an amber assessment identified during the course of their audit and the management comments received in response to the recommendations.

In response to a number of questions, Paul Grady from Azets advised:

·         that in relation to Housing Benefit payments, assurance was required to be provided to the DWP in a prescribed manner, that the Council’s claim was accurate;

·         additional work that was required as a result in the delays would be outside of the original contract.  The PSAA would consider the situation and determine the liability and potential mitigation;

·         many local authorities had been affected by the delays with ever more complex audits.  The Government were aware of the situation and were looking at a whole system approach to respond to the issue;

·         Azets were a continuously growing company with an increasing workforce and assurances were given that they were in a healthy position to ensure resources would be available to complete their audits.

The Chair thanked Martha and Paul from Azets for their attendance.

It was RESOLVED that the progress to date be noted.