This report updates the Committee on the progress of the audit of the Council’s Final Accounts for 2020/21, as it nears completion. The report also provides an update on the 2021/22 and 2022/23 accounts.
Minutes:
The Committee received a report on the progress of the audit of the Council’s Final Accounts for 2020/21, as it neared completion. The report also gave a progress update on the 2021/22 and 2022/23 accounts. In future, the accounts would be signed off by Council, with the Audit and Governance Committee playing a pivotal role in their scrutiny.
The report stated that there had been no further amendments or material changes to the Council’s Final Accounts for 2020/21 since the last update. Therefore, it was anticipated that the External Auditors would conclude the audit imminently. The draft 2021/22 accounts had been published towards the end of November 2023 and the public inspection period had commenced on 22 November 2023 and concluded on 10 January 2024. The accounts and the reconciled Financial System Report had been provided to the auditors at the beginning of 2024 and officers were awaiting their intended audit approach and any dates for the 2021/22 audit. The draft 2022/23 accounts were on track to be produced and published by the end of January/beginning of February. This draft would incorporate any last changes from the 2020/21 audit, should there be any further findings. This would provide a good platform to continue the closedown processes for 2023/24 with the objective of returning to a timely position on the preparation of accounts within statutory deadlines.
The Statement of Accounts 2022/23 would be the last year that the external auditors would be EY. It was prudent practice for the external auditors to change on a scheduled basis to avoid any bias and to ensure impartiality and an objective approach. KPMG would be the Council’s new auditors from 2023/24 who would build upon the assurances they received from EY and commence their audits with their own approach.
Darren Carter, Director of Finance, reported that he had received a letter from the Minster for Local Government on 9 January 2024, which stated the intention to set a backstop date of 30 September 2024 for the conclusion of audits up to 2022/23. He interpreted this as meaning that any audits, prior to 2023/24, which had not been completed by the end of September would be effectively concluded and the external auditors would be required to issue disclaimer opinions, in recognition that it had not been possible to complete the audit by the deadline. This did not mean work towards the completion of the 2021/22 and 2022/23 audits would cease, as it was in all parties’ interests to have as complete a set of accounts as possible to provide reassurance on the robustness of the Council’s financial position and to assist the accuracy of future audits.
Resolved: That the accounts progress and findings to date be noted.
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