A representative from the Council’s External Auditor will provide an update on the audit process and External Audit Plan.

The Committee received a covering report on behalf of the Council’s External Auditor, KPMG, which had attached their Annual Report, providing a summary of the findings and key issues arising from the 2023-24 audit, along with the Auditor’s Year End Report to the Committee.  The report had been prepared in line with the requirements set out in the Code of Audit Practice by the National Audit Office and was required to be published by the Council with the annual report and accounts.  The Committee noted that the Annual Governance Statement, Annual Statement of Accounts 2023/24 and the External Auditor’s Annual Report would be submitted to Council on 25 February 2025 for consideration.

The Auditor’s report set out a summary of KPMG’s conclusions that were required in respect of their responsibilities.  In relation to the Council’s Accounts, KPMG would issue a disclaimed opinion. The significant financial statement audit risks identified were:valuation of land and buildings; valuation of investment property, management override of controls and valuationof post-retirement benefit obligations details of which were described in the report.  There were not any significant inconsistencies between the content of the narrative report and KPMG’s knowledge of the Council.  In addition, regarding Value for Money, the Council was found to have appropriate arrangements in place with no identified significant weaknesses in respect of arrangements to secure economy, efficiency and effectiveness in the use of resources.

The Committee considered recommendations raised by KPMG in respect of value for money in the current year, which included deficiencies found in the Employee Gifts & Hospitality and Declarations of Interest register.  The Audit Report recommended applying a more rigorous approach to declarations of interests and gifts & hospitality, with centralised and regularly updated/reviewed registers.  The process could be monitored through the Audit and Governance Committee to ensure records were complete.

The Committee requested further information on the approach to recovery through the backstop dates to address any ongoing concerns in relation to finalising external audit opinions.   Members were advised to read the Financial Reporting Council (FRC) summary document ‘Local Audit Backlog – Rebuilding Assurance’ and the more detailed Local Audit Reset and Recovery Implementation Guidance (LARRIG) guidance notes issued by the National Audit Office for further clarification.

Resolved:     

(1)     That KPMG’s Annual Report 2023/24 and Year End Report to the Committee be noted;

(2)     That officers be asked to consider applying a more rigorous approach to registering declarations of interests and gifts & hospitality and whether the process should include monitoring by the Audit & Governance Committee to ensure records were complete;

(3)     That the Financial Reporting Council summary document ‘Local Audit Backlog – Rebuilding Assurance’ and the more detailed Local Audit Reset and Recovery Implementation Guidance (LARRIG) guidance notes issued by the National Audit Office be circulated to Members of the Committee for their information.