Agenda item

The Ernst and Young (EY LLP) representative introduced the report which covered both 2021/22 and 2022/23 and updated the annual governance statement, therefore closing EY’s audit responsibility.

The EY LLP representative referred to page 7 of the report which gave important local background, including content on the council’s delays in financial reporting. She said that although disclaimer opinion had been given, value for money commentary was present.

The EY LLP representative highlighted other key points and said that the statutory recommendations included in the report (which could be seen at Appendix E) were required to be considered at a meeting of full Council within 30 days.

The Chair thanked the EY LLP representative for her report.

Councillor Nicholls said that the report was very detailed, and that Members had not had much time to read through it. She asked why there had been a delay in publishing a supplementary agenda.

The Head Finance S151 apologised for the delay, which was to enable management responses to be included within the report (as seen in yellow text at pages 77 – 80). He said that the report was going to Council in May, and that this would give Members more time to digest its contents. He emphasised that the Committee Work Programme was fluid, but that going forward it would be kept up to date so that Members knew what items to expect. 

Mr Sharman welcomed the assurances within the report regarding the preparation of financial statements. He referred to the aforementioned management responses and said that it was good that firm action dates had been given, as these were previously lacking. He asked if officers were confident that they could meet the audit backstop date.

The Head Finance S151 said that the 2023/24 versions had been seen last week and were near completion. He said that he was therefore confident that these would be available to view online by the end of April. 

The Head Finance S151 said that the backstop for 2024/25 was February 2026, which was a challenging but achievable objective that was being worked towards.

Mr Sharman said that this was reassuring to hear. He asked if the new auditor (Azets) could give feedback to the Committee at every meeting, not necessarily in attendance, but to raise any issues and thus avoid any surprises. 

The Head Finance S151 said that he had worked with both EY LLP and Azets in previous roles. He said that he would feedback that the Committee would like an update at every meeting.

Councillor Nicholls said that she was concerned by the lack of communication between the previous Section 151 Officer and Chief Executive. She asked if the new staff in these positions would see a change in both planning and relationships.

The Head of Finance S151 said that there was a ‘golden triangle’ which involved the Chief Executive, Section 151 Officer, and the Monitoring Officer meeting monthly. He said that the Executive Member for Financial Sustainability would also have regular meetings with section 151 officer.

Councillor Woollcombe said that it was good to see the EY LLP representative at the meeting, and for Members to have sight of a calendar which told them what was due and when. 

The EY LLP representative said that a plan, including a timeline for 2021/22, would have been received by the Committee. She said that there was no plan for 2022/23 as communication had broken down with the former Section 151 Officer and Chief Executive, but there was now a more positive environment under the new post holders.

Councillor Woollcombe said that it would be beneficial for Members to have simple graphics within reports to illustrate where the council was and where they needed to be.

The Head of Finance S151 said that this could be included on the Committee’s Work Programme.

Mr Poppy asked if Finance officers had the capacity to deliver what was planned.

The Head of Finance S151 said that the review of the Finance Team was being undertaken, to establish what they had, and what was needed. He said that a short-term contractor was being engaged to assist with capacity within the team, and that the team was clear on its goals.

It was moved by Councillor Nicholls and seconded by Councillor Woollcombe, that the recommendations, as detailed, be approved. After being put to the meeting and a vote taken, this motion was declared CARRIED.

RESOLVED – that (A) the external auditor’s Completion Report for 2021/22 and 2022/23 be received and any comments be given; and

(B)   that the 2021/22 and 2022/23 Statement of Accounts be approved.