To receive the latest External Audit Draft Audit Results Report 2019/20.

The Annual Audit Letter 2018/19 is attached for information only, in accordance with the requirement to issue an annual audit letter to the Council following completion of EY’s audit procedures for the year ended 31 March 2019.

Larisa Midoni, EY, presented the latest External Audit Draft Audit Results Report for 2019/20 and the Annual Audit Letter for 2018/19.  The Audit Letter was required following completion of EY’s audit procedures for the year ended 31 March 2019 and was for noting.  The Committee’s attention was drawn to the comments about the ‘Value for Money’ assessment in the draft Audit Results Report, which advised that, despite progress being made, some issues highlighted in previous reports had still persisted during the 2019/20 financial year. 

The report explained that, taking the Ofsted Inspection Reports in July 2019 and October 2019 as being representative of the position in Children’s services in 2019/20, there was evidence of improvement on the inspections taking place.  At this time, OfSTED had updated its conclusion in respect of Children’s Services from ‘Inadequate’ to ‘Requires Improvement’. During 2019/20, however, there had still been a lack of consistency across Children’s services with a number of concerns raised by the regulator at regular intervals in that period.  The Children’s Company ‘Brighter Futures for Reading’ had been incorporated in December 2018 and this had been a key focus of EY’s work on value for money during the 2019/20 audit. Taken together, this had provided evidence of weakness in arrangements during 2019/20 and had resulted in a qualification on Working with Partners and Third Parties.  Therefore, it was likely that the value for money conclusion for this year would remain qualified.

Resolved:     That the External Audit Draft Audit Results Report 2019/20 and Annual Audit Letter 2018/19 be noted and further reports be presented to the Committee as necessary.