Agenda item

The Azets representative introduced the report which set out their plan for the 2024/25 Statement of Accounts. He said that work had already commenced earlier in the year to avoid falling further behind, but that chunks of work would be unachievable due to the backstop. 

The Azets representative drew Members attention to page 19 of the report, which detailed materiality. He referred to the guidance issued by both the Local Audit Reset and Recovery Implementation Guidance (LARRIG) and the government to build back assurance and said that page 15 of the report provided a year-by-year overview of their aims to achieve this. 

The Azets representative said that key risks were the Council’s assets and the size of its pension fund, adding that the MRP wasflagged as something to be looked at - although this would not impact an opinion. 

The Chair thanked officers for the report and observed that problems had arisen from issues with resources.

The Azets representative said that barriers were created when records did not exist or took longer to obtain – being too much for the Finance Team to respond. 

The Director for Finance, Risk and Performance said that a report would come before the Committee at their November meeting which would give an update on the action points raised by the previous external auditor.

Councillor Nicholls asked if the revised method of working was more costly.

The Azets representative said that it was, but that fees were set by the Public Sector Audit Appointments (PSAA). He said that that the government had set aside extra funding for additional costs – as long as authorities produced accounts on time and their audit fees had been paid. He said that the reporting of fees was more complex but was good for transparency – showing any additional work undertaken and the reasons as to why. 

The Chair asked how East Herts compared to other local authorities.

The Azets representative said that the complexity of East Herts was less than some of its neighbours, and that approximately fifty percent of the country currently found itself in a disclaimer position. He said that missing the backstop and receiving statutory recommendations was not so normal, but the thinking and arrangements now in place at East Herts were promising.

Mr Sharman said that the comparability and build back charts were clear and asked if record keeping would support the ability to look back over the past three/four years.

The Director for Finance, Risk and Performance said that the Council was required to keep six years of records – and so this was not a major concern.

Councillor Nicholls thanked the Azets representative for the refreshing ‘critical friend’ style of his report.

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

RESOLVED – that the external auditor’s Audit Plan for 2024/25 be received and any comments made.