Agenda item

The Council’s external auditors presented the Audit Completion Report which summarised the findings from the 2020/21 audit.

The external auditor’s work on the financial statements was substantially complete and, subject to satisfactory conclusion of any outstanding work, they would propose issuing an unqualified audit opinion by 31 January 2022. As part of the audit, the internal controls in place relevant to the preparation of the financial statements had been considered, with 1 low recommendation resulting from this work made as follows:

·       property valuations.

Further details of these recommendations were outlined in section 5 of the external auditors’ report at Appendix A.

In relation to misstatements in the accounts, there were five misstatements identified that were above the threshold level of £49k., Two of which were adjusted for as part of the audit process and had been reflected in the Statement of Accounts. The remaining three misstatements were not proposed to be adjusted for, the effects of these incorrected misstatements were immaterial, both individually and in aggregate, to the financial statements as a whole. Further details of these misstatements were provided in section 5 of the auditors’ report at Appendix A.

The Statement of Accounts included on the agenda for this meeting at item 6 reflected a fully amended version of the document.

It was reported that the Council’s arrangements for securing economy, efficiency and effectiveness in its use of resources were yet to be completed. At the time of preparing this report, no significant weaknesses in arrangements, that required a recommendation to be made had been identified. However, work continued to be undertaken on the Council’s arrangements and a commentary of these would be provided in the External Auditors Annual Report.

As part of presenting this item, the external auditors took the Committee through each page of the report and highlighted any key issues, particularly with regard to:

• the audit approach;
• significant findings;
• internal control recommendations;
• summary of misstatements;
• value for money conclusion.

Question: Asked for more information on the Whole Government of Accounts.

Response: The Whole Government of Accounts was a process where departments accounts were consolidated. The work was unable to commence in this area until instruction had been received from the National Audit Office. This would not impact on the Audit opinion.

Question: Asked how working from home had affected  audit work.

Response: There had been some challenges and also some benefits, but the work had been completed virtually.

The committee expressed their thanks and appreciation to the Finance Team for preparing an accurate Statement of Accounts.

It was RESOLVED:

(1)      That the financial statements be recommended to Council for approval.

(2)      That the draft letter of representation on behalf of the Council be approved, before the external auditors issue an opinion, conclusion and certificate, and that any further amendments to the letter, should any additional issues by raised by the external auditors prior to 31 January 2022 be delegated to the Chief Finance Officer and Chair of the Audit Committee, which any changes reported back to the Audit Committee.

(3)      That any further changes that may be required to the Statement of Accounts as identified during the conclusion of the audit, be delegated to the Chief Finance Officer and Chair of the Audit Committee, with any changes reported back to the Audit Committee.