A representative from the Council’s External Auditor EY will present an update on the audit of 2020/21 financial statements and provide an update with regard to the following year’s statements and Value for Money assessments.

The Committee received a covering report on behalf of the Council’s External Auditor, EY, providing an update on the audit of 2020/21 financial statements and the following year’s statements and Value for Money assessments.  Maria Grindley was present and addressed the Committee on the completion of the audit of the Council’s Final Accounts for 2020/21 and the next steps to completing as much as possible of the 2021/22 and 2022/23 audit of accounts by the Government’s backstop deadline, which could be as soon as September 2024.

The Committee was advised that the Council had not only dealt with the current issues raised through the audit process but had taken the opportunity to make sure sustainable improvements were made to record keeping.  This should hold the Council’s future audits in good stead as the purpose had not just been to fix the current position in the financial statements, but also to make sure that whatever the issue was that was causing that position was dealt with as well.

In relation to the value for money (VFM) commentary, the external auditor had identified two areas of weakness.  Firstly, the control account and bank reconciliations and secondly, Children’s Services.  It was noted that the VFM findings were based on findings from the 2020/21 accounts and that significant improvements had been made in these areas since that date.  Maria Grindley explained that the VFM work would be prioritised for the 2021/22 and 2022/23 accounts, in view of the Government’s consultation on backstop dates for these accounts and the insufficient time to complete full audits.  This was important as it would reflect the position as at March 2023 more accurately in relation to the two areas of weakness referred to above, which had been found in the 2020/21 accounts.

Resolved:      

(1)        That EY’s update for 2020/21 financial statements be noted;

(2)        That EY’s update for future audit work be noted.