Verbal update by Deloitte and Lewes District Council Officers
Minutes:
The Committee invited the Deputy Chief Finance Officer (DCFO) and the Council’s External Auditor, Deloitte, to provide an update in relation to the delay to the External Audit of the 2018/19 Statement of Accounts.
The DCFO reminded the Committee that at its previous meeting in November 2020, Members had requested that Officers and Deloitte produce a list of outstanding actions in relation to the delay to the External Audit of the 2018/19 Statement of Accounts.
The DCFO highlighted that after discussions with Deloitte, it was understood that the further delays were due to a lack of resources on the part of Deloitte and that from an Officer standpoint, there were no significant updates to provide to the Committee at this time.
Mr Sheriff of Deloitte agreed with the DCFO’s comments and explained that from the External Auditors perspective, the Covid-19 pandemic had been a challenging time in terms of resources and that as a result, Deloitte were not expected to have the resources in January or February 2021 to complete further works on the outstanding issues in relation to the External Audit of the 2018/19 Statement of Accounts.
The Committee expressed its surprise and disappointment on the continued delays in relation to the External Audit of the 2018/19 Statement of Accounts.
Discussions included:
· Questions surrounding the ramifications to the Council for not having the External Audit of the 2018/19 Statement of Accounts completed within a two-year timeframe. The DCFO explained that there were no clear legal remedies in relation to a timeframe in which the audits had to be completed, but it was not good to have the audits outstanding, as it had possible ramifications for stakeholders.
· Questions surrounding whether or not Deloitte could provide a concrete timeline as to when the External Audit of the 2018/19 and the 2019/20 Statement of Accounts would be completed. Mr Sheriff explained that Deloitte could not commit to a fixed timeline for completion.
· Questions surrounding the outcome of the meeting between Officers and Deloitte in relation to the list of outstanding actions needed to be completed. The DCFO explained that Officers had provided a list of outstanding actions to Deloitte. Mr Sheriff of Deloitte confirmed that the relevant member of his team had received the list of outstanding actions but did not agree with the contents of the list. The outstanding issues were unable to be resolved in time for the update to the Committee due to the relevant staff from Deloitte not being available as a result of the Christmas holiday break and various annual leave dates.
The Committee highlighted its disappointment with the External Auditor’s efforts and requested that Officers meet with Deloitte’s senior partners with the intention of resolving any outstanding issues as soon as practicable. Officers agreed.
The Chief Finance Officer thanked the Committee for its comments and helpful feedback. She extended an invitation to Deloitte’s senior partners to ensure Mr Sheriff was getting the support and resourcing his team required.
The Chair thanked Mr Sheriff of Deloitte for the update and also thanked the Committee and Officers for their patience and comments surrounding ongoing discussions with the External Auditor.
Resolved:
That the verbal update be noted.