Agenda item

Report of the Director of Finance & Resourcing (Treasurer) (APRC/19/16).

The Committee considered a report of the Director of Finance & Resourcing (Treasurer) (APRC/19/16) that set out further information on a request received from the external auditor, Grant Thornton, for a late audit of the Authority’s financial statements in 2020.

Barrie Morriss, representing Grant Thornton, was present at the meeting and he gave an overview of the main reasons behind the request made to the Authority for a late audit.  These included:

·        That the bringing forward of publication of the Statement of Accounts to 31 July was untenable for external auditors given the availability of quality resources to help meet public sector demand;

·        Although Grant Thornton had outperformed other external auditors (63% of its audits delivered by 31 July as opposed to a 58% average in the sector) it was still requesting a late audit for the Authority on the basis that it had fewer issues to be resolved (i.e. financial management and internal controls were of a good standard) and this would allow more time for Grant Thornton to focus on other, less compliant clients;

·        This was a sector wide issue and agreeing to the request for a late audit would not prejudice the Authority’s ability to publish its accounts in compliance with the Account & Audit Regulations 2015 and would not be a reflection on the Authority’s performance.

The Director of Finance & Resourcing (Treasurer) advised the Committee of her reservations in respect of the request made for a late audit.  These were primarily surrounding the points:

·        that the Home Office was collating a list of those authorities that did not meet the requisite audit publication date and that the Public Sector Audit Appointments (PSAA) may choose to publish this in 2020 so there was a potential reputational risk for this Authority; and

·        that this may increase pressure on the Finance team as pushing the audit of financial statements to late September would begin to clash with the start of the budget setting process.

It was noted that the Director of Finance & Resourcing would, however, work closely with Grant Thornton to ensure that the requisite statement on publication of a late audit would reflect the reasons behind this clearly should the Committee be minded to agree this.  The Director of Governance & Digital Services added that the purpose of the audit was to provide assurance and, if agreeing to a late audit would assist the auditors in the performance of their duties, it could be justified as being in the general public interest.

Councillor Saywell MOVED (seconded by Councillor Wheeler):

“that the request made by Grant Thornton for a late audit in 2020 be approved and that the Director of Finance & Resourcing be delegated authority to publish a revised audit notice by 31 July 2020 stating clearly the reasons behind this”.

The motion was CARRIED unanimously.

RESOLVED that the request made by Grant Thornton for a late audit in 2020 be approved and that the Director of Finance & Resourcing be delegated authority to publish a revised audit notice by 31 July 2020 stating clearly the reasons behind this.