Agenda item

This report presents the External Audit Plan for 2024/25. In accordance with audit regulations, it must be presented to Committee.

The Committee received a report presenting the External Audit Plan for 2024/25. In accordance with audit regulations, it must be presented to Committee.

The following matters were considered:

a)            Report updates. The Chair highlighted that on page 127, paragraph 2.2 of the report currently states that the unaudited 2024/25 Statement of Accounts was published on the 11^th of July (TBC), this can now be confirmed as having been published on the 14^th of July. The Chair also explained that on page 164, Grant Thornton have provided an estimate of £9000 for the fee for providing additional work related to the implementation of IFRS 16.

b)            Governance. A Member of the Committee brought attention to the fact that the External Auditors’ will be following up on their 2023/24 identification of a weakness with the Council’s governance arrangements, set out on page 159. The Member expressed their dissatisfaction with the lack of acknowledgement either verbally or in writing from SLT on the External Auditors’ finding of a significant weakness with the Council’s governance arrangements. The Member asked for an acknowledgement that the terms of the audit plan are a recognition of the finding of a significant weakness and that the External Auditors are planning to assess the Council’s arrangements to strengthen transparency. The Director of Corporate Services (S151) explained that the audit plan is not expressing an opinion of the 2024/25 accounts, it is setting out the areas the External Auditors’ will be looking at. The Director of Corporate Services (S151) informed the Committee that a decision will be made by assessing the Council’s systems, processes and various other lines of decision making. The Director of Corporate Services (S151) explained that Grant Thornton have an arrangement that they put in place to look at areas of potential weakness or risk and the Council will be able to respond to that, and at the end of December, the Council will provide evidence to show whether there are weaknesses. The External Auditor informed the Committee that the report sets out the plan and approach they will be taking to follow up on the previous year’s recommendation, and part of that process set out includes a conversation where the Strategic Leadership Team review documentation. The External Auditor explained that once that work is done, they will be able to form a view in terms of whether they feel adequate progress has been made in response to that recommendation.

c)            Housing situation. A Member raised a concern with the Council’s finances given the current housing situation, particularly with the cost of temporary housing. The Member raised it might be of benefit to include this area in the External Audit Plan, and whether the Council would receive guidance as to how it is managing the housing situation. The Director of Corporate Services (S151) explained that this topic has been taken to the Financial Strategy Advisory Group and the Strategy and Resources Committee, to discuss housing related pressures. The Director of Corporate Services (S151) explained that the External Auditors might not be specifically looking at housing related issues as it is not set out in the audit plan, but they would comment on it as part of the financial review. The External Auditor explained that they would look at housing arrangements and comment.

d)            Thanks. A Member of the Committee expressed thanks to the External Auditors and assured Officers that they understood what page 159 is setting out. The Member noted their concern that Officers do not seem to be aware of the seriousness of the situation and expressed their disappointment that they still haven’t heard an acknowledgement that there was a significant weakness identified in 2023/24 that affects the risk assessment for 2024/25. The Chair noted the comments.

Following consideration, the Committee unanimously resolved to:

(1)      Receive and note the External Audit Plan for 2024/25 as set out in Appendix 1 and acknowledge that the S151 Officer is satisfied with the details of the scope of the audit.