Agenda item

Report of Director of Finance and Performance

Agenda Item 6, External Audit Progress, was considered concurrently with this item.

The Deputy Chief Finance Officer (DCFO) provided Members with an update in respect of the External Auditor’s (Deloitte) progress on the Council’s draft 2019/20 Statement of Accounts.

The DCFO summarised the report and detailed the Officer recommendations. He noted that although the delayed final audit was now nearing completion, Officers were disappointed that the previously agreed revised completion deadlines had not been met by Deloitte.

The DCFO highlighted that Deloitte’s delayed final audit of the 2019/20 Statement of Accounts was presenting the Council with a significant and serious risk of the existing auditors not being in the position to hand over the final audit function to the Council’s newly appointed auditors, Grant Thornton LLP. The DCFO further highlighted that every day the final audit of the 2019/20 Statement of Accounts was delayed, the Council could face additional financial, reputational and governance costs.

Discussions included penalty notices, the revised projected completion dates for the outstanding External Audits as set out in paragraph 1.4, questions in relation to delegations following the results of the elections on 4 May 2023 and further letters of representation to Deloitte by Officers, on behalf of the Committee.

The Committee highlighted the elections on 4 May 2023 and queried who would be acting as Chair in respect of the delegation to sign-off the audited LDC 2019/20 Statement of Accounts in consultation with the Director of Finance and Performance. The Committee Officer confirmed that she would review the Council’s constitution and consult the Committee Team Manager and Head of Democratic Services to clarify the position of the Chair from the elections on 4 May 2023 to the appointment of the new Chair of the Audit and Standards Committee during the Annual Full Council meeting on 22 May 2023.

The Committee queried if Deloitte had given an indication of the amount of additional applied fees as a result of its delayed External Audit on the 2019/20 Statement of Accounts. The DCFO explained that Deloitte had not provided an indication of the amount of additional fees, but that Officers had been requesting the proposed amount of additional fees, as the fees needed to be agreed before they were presented to the Public Sector Audit Appointments (PSAA).

The Chair queried whether Officers could once again write to Deloitte on behalf of the Committee in respect of outstanding external audits. The DCFO agreed.

Resolved:

1.    That Officers write to the Council’s External Auditor, Deloitte, on behalf of the Committee in respect of the outstanding external audits on the 2019/20, 2020/21, 2021/22 and 2022/23 Statement of Accounts;

2.    That the Independent Auditor’s (Deloitte) progress report to those charged with governance on LDC Accounts and the Value for Money conclusion report, be noted;

3.    That authority be delegated to the Chair of the Audit and Standards Committee in consultation with the Director of Finance and Performance (Chief Finance Officer/S151 Officer) to sign-off the audited LDC 2019/20 Statement of Accounts; and

4.    That the Director of Finance and Performance (Chief Finance Officer/ S151 Officer) to sign the formal Letter of Representation to Deloitte.