Issue - meetings

The Head of Strategic Finance and Property introduced the report. He said that it should be viewed within the context of the 2022/23 year, with the war in Ukraine, the cost-of-living crisis, high inflation, three different Prime Ministers and a rise in interest rates.

The Head of Strategic Finance and Property said that the underspend was contributed to by delays to schemes caused by archaeological finds and drew Members’ attention to the report’s appendices for full details.

Councillor Deering referred to paragraph 3.1 of the report and asked if the delays to the 2021/22 and 2022/23 external audits were causing problems. He asked if the council was holding its position.

The Head of Strategic Finance and Property said that as detailed in the briefing note circulated to the Committee, the contractual relationship was between the Public Sector Audit Appointment Limited (PSAA) and the external auditor (EY LLP). He said that the council could complain to the PSAA about EY but that they were already aware of the situation.

The Head of Strategic Finance and Property said that the government was considering implementing deadlines and the solution of allowing auditors to disclaim an option on accounts if these could not be met.

The Head of Strategic Finance and Property said that EY was exiting the market, but that the Finance Team continued to work hard to try and get them to come in. He said that EY should have been at the meeting.

Councillor Deering said that should the external audit delays be causing a problem Members needed to know. He asked if it was fair comment to say that the delays were not of the council’s making.  

The Head of Strategic Finance and Property said that this was fair comment.

Councillor Jacobs said that the external auditor had given a target for their report to be on the agenda at tonight’s meeting.

The Head of Strategic Finance and Property said that this had been moved back to the November meeting of the Committee, and it would be impressed upon EY that Members expected their report. 

Mr Poppy said that as an employee of The Chartered Institute of Public Finance and Accountancy (CIPFA) he was aware that delays with external audits were countrywide.

Councillor Jacobs referred to page 100 of the report and asked for an update on the council’s reserves.

The Head of Strategic Finance and Property said that he would find this information for Councillor Jacobs.  

The Chairman thanked the Head of Strategic Finance and Property for his report.  

RESOLVED – that A) it be noted that the General Fund revenue outturn of £195k overspend will be funded from the General Reserve; and

B) that the Capital Programme was underspent by £14.797m due to slippage caused by various factors, including archaeological finds. Budgets of £12.916 million will be carried forward to the next financial year as a consequence.