This report provides an update with progress on completion of the audit of the Council’s Final Accounts for 2019/20, 2020/21 and preparation for the 2021/22 accounts. The report will be considered alongside EY’s External Audit Update report also on tonight’s agenda.  The report also confirms that KPMG will be the Council’s new External Auditor for five years covering the 2023/24 to 2027/28 Statements of Account.

Mark Sanders, Chief Accountant, submitted a report providing an update on closing the financial accounts.  The report explained that three sets of accounts (2019/20, 2020/21 and 2021/22) were being worked on concurrently.  The accounts were all at different stages of completion, which brought extra complexity to the process for the Council and the External Auditors, but remained the best way to bring the whole process up to date. An incremental approach had been adopted to make any significant adjustments arising in one year, agreed during the audit process, would be reflected in the accounts of the following year before they were prepared.  The Council’s Finance Team had continued to meet regularly with the External Auditor’s (EY) team to manage the progress and discuss matters arising.  The report contained further detail of the progress being made in each of the sets of accounts.

The report stated that the Council had opted to join the External Auditor appointment process run by Public Sector Audit Appointments (PSAA).  This process had now been concluded and KPMG had been appointed as the Council’s new auditor for five years covering the 2023/24 Statement of Accounts through to 2027/28.  There would now be a planning process over the next few months to begin the transition between auditors.  EY would still sign off the 2022/23 Statement of Accounts and would support the transition process. 

Resolved:

(1)          That the progress made on the audit of the accounts for 2019/20, 2020/21 and preparation for the 2021/22 accounts be noted;

(2)          That the appointment of KPMG as the Council’s new independent External Auditor for five years from 2023/24 be noted.