Agenda and draft minutes

None received.

To confirm, as being a correct record, the minutes of the Audit Committee, held on 28 November 2024, and for them to be signed by the Chair.

The minutes of the Audit Committee held on 28 November 2024 were confirmed as a correct record and signed by the Chair of the meeting.

Items of other business notified under Council Procedure Rule 30 to be announced, together with special circumstances that justify their consideration as a matter of urgency.  The Chair to rule on the admission of such items.

There were no items of other business.

To receive any declarations of interest.

There were no declarations of interest.

This report sets out the latest position for external audit of the Statement of Accounts for 2023/24. The latest version of the Statement of Accounts 2023/24 is presented to the Committee for approval alongside the Letter of Representation.

The accounts will be signed and published on the Council’s website ahead of the relevant backstop date of 28 February 2025.

Recommendations

i.                 To approve the Statement of Accounts 2023/24 at Appendix 1.

ii.                To approve the Letter of Representation 2023/24 at Appendix 2.

iii.               To agree that the Section 151 Officer, in consultation with the Chair of the Committee, can make further changes to the Statement of Accounts 2023/24 and the Letter of Representation for 2023/24 that may arise during the completion of the audit.

iv.              Agree that the Committee authorise and instruct the chair to sign the Statement of Accounts for 2023/24 once finalised and signed by the Section 151 Officer to confirm that the Statement of Accounts presents a true and fair view of:

(a)   The financial position of the authority at the end of the financial year to which it relates; and

(b) That authority’s income and expenditure for that financial year.

The Director of Finance introduced the report.

In response to concerns raised regarding the significant increase in audit fees, the Director of Finance explained that the previous fees were set too low, contributing to financial issues within the sector, and also explained that there is an ongoing dispute with the Public Sector Audit Appointments (PSAA) regarding these fees, emphasising the lack of direct negotiating power with auditors. The conversation touched on the uncertainty surrounding the resolution timeline of the dispute.

The Director of Finance also clarified that the Leader of the Council should be named in the financial statements as of the times the accounts are signed, rather than the year of the statements.

Councillor Tony Humphreys moved the recommendation, seconded by Councillor Keith Martin, that the Committee:

1. To approve the Statement of Accounts 2023/24 at Appendix 1.

2. To approve the Letter of Representation 2023/24 at Appendix 2.

3. To agree that the Section 151 Officer, in consultation with the Chair of the Committee, can make further changes to the Statement of Accounts 2023/24 and the Letter of Representation for 2023/24 that may arise during the completion of the audit.

4. Agree that the Committee authorise and instruct the chair to sign the Statement of Accounts for 2023/24 once finalised and signed by the Section 151 Officer to confirm that the Statement of Accounts presents a true and fair view of:

(a)      The financial position of the authority at the end of the financial year to which it relates; and

(b)      That authority’s income and expenditure for that financial year.

On being put to the Committee the motion was declared CARRIED by the Chair, the voting being by general assent.

RESOLVED:

1. To approve the Statement of Accounts 2023/24 at Appendix 1.

2. To approve the Letter of Representation 2023/24 at Appendix 2.

3. To agree that the Section 151 Officer, in consultation with the Chair of the Committee, can make further changes to the Statement of Accounts 2023/24 and the Letter of Representation for 2023/24 that may arise during the completion of the audit.

4. Agree that the Committee authorise and instruct the chair to sign the Statement of Accounts for 2023/24 once finalised and signed by the Section 151 Officer to confirm that the Statement of Accounts presents a true and fair view of:

(c)      The financial position of the authority at the end of the financial year to which it relates; and

(d)      That authority’s income and expenditure for that financial year.

Independent Auditor’s Report to the members of Three Rivers District Council.

Paul Grady from Azets introduced the report. The speaker explained the quality indicators of the Council’s financial accounts, noting that while there are amber indicators due to missed deadlines, there is a clear path towards improvement. He emphasised that the Council is on track to meet future deadlines and aims to resolve identified errors. The speaker reassured that there are no significant weaknesses in the Council’s arrangements for value for money, indicating that the Council’s governance and financial sustainability are sound. The speaker also mentioned ongoing discussions about rebuilding assurance and the importance of collaboration with regulatory bodies.

In response to questions raised regarding inadequacies of an audit in detecting irregularities and potential fraud within the Council’s operations and the financial significance of the new income strip scheme that the Council has entered into, the speaker elaborated on the nature of fraud that should be detected, including misappropriation of assets and financial reporting discrepancies. He clarified that the current audit does not relate to a specific project in South Oxhey but highlights a broader issue regarding the Council’s arrangements for fraud detection. The conversation emphasised the need for thorough investigations into possible fraud, which were hindered by procedural limitations.

The speaker also explained the nature of the financial scheme, explaining that it involves a long term financial obligation, dependent on rental income from sub leases. Despite the complexities of the scheme, the speaker expressed that among various councils with similar schemes, this particular one is the least concerning, due to features like inflation-linked income. However, he noted that a clean accounting opinion cannot yet be given, as further assessment is needed. The speaker also clarified that the accounts are not filed in the same way as commercial accounts. There is a legal requirement to publish the accounts online and an audit certificate is also published as a supplement.

RESOLVED:

The Committee noted the report.

None

If any confidential business is approved under item 3, it will also be necessary to specify the class of exempt or confidential information in the additional item(s) and a resolution be passed in the following terms:

“that under Section 100A (4) of the Local Government Act 1972, the press and public be excluded from the meeting for the following item(s) of business on the grounds that they involve the likely disclosure of exempt information as defined under the respective paragraphs 1 to 7 of Part 1 of Schedule 12A to the Act.”