Agenda item

The Head of Strategic Finance and Property explained that a report on the accounts would normally be presented to Members by 31 July and of the difficulties that the Council’s External Auditors (EY) were experiencing in being able to carry out the audit and sign off the accounts by the statutory deadline. 

The External Auditor apologised to Members and explained that they were suffering from staff shortages and that as a result, their work with a number of local authorities would be approached with an emphasis on remote working to access the Council’s accounts.  He explained that External Auditors would be on site by 15 July and would spend a week on site.  Of the 160 authorities that EY audit, 18 authorities had been advised that EY could not start their audit until the end of July and 12 authorities advised that the Audit would not be resourced until August, 2019.  Members’ sought and were provided with assurances that EY were doing all it could to address the recruitment issue and going forward, of lessons learned. 

Councillor J Wyllie raised the issue of the pressures on Councils to produce accounts within 3-4 months whereas the private sector had a much longer period of time to produce accounts.  He sought assurances that the costs of the impact on Officers in terms of additional hours which may be needed would be re-charged to EY.  The Head of Strategic Finance and Property assured Members that they would work together to mitigate the impact and to address issues; she expressed concern in relation to staff who had booked holidays after what they had thought was the sign off for the final accounts.  

Concern was expressed by a number of members about EYs staffing issues and the degree of remote working proposed by them. 

Assurances were sought and provided to Councillor A Curtis that the quality of the audit would not be compromised.

The Head of Strategic Finance and Property explained that there would be an informal briefing for all Members regarding the draft accounts on 16 July 2019.

Councillor A Curtis referred to the pressures on the service in terms of the management of projects.  The Head of Strategic Finance and Property referred to the strong support she had from Officers.

Following the departure of the External Auditor, the Head of strategic Finance and Property explained that she had written to the PSAA requesting a change to the external audit provision. 

With Members consent, the Head of Strategic Finance and Property said she would write again to the PSAA (Public Service Account Auditing) and reinforce the need to change the external audit provision.  This was supported.

Councillor A Ward-Booth suggested the insertion of a Penalty Clause in any future external audit contract.  Councillor J Wyllie emphasised the short lead in time for public accounts and the problems this caused for local authorities.

Members received the report.

RESOLVED – that (A) the report be noted;

(B)   the Head of Strategic Finance and Property write to the PSAA expressing Members’ concerns about the delays in carrying out the Council’s Audit caused by the External Auditor’s staffing resources.