Agenda item

Reshma Ravikumar introduced her report, which highlighted insights into the current status of the audit process, specifically focusing on the interim audit findings report. The speaker mentioned that two reports have been prepared for the committee, including a briefing paper on Rebuilding Assurance. However, the speaker emphasised that the audit work cannot commence until the updated 2023-24 draft accounts are received, which are expected soon. Additionally, the speaker noted that the previous accounts are still pending completion, and any changes to the audit plan will be communicated to the committee once EY finish their accounts.

Members raised concerns about the amber RAG status due to delays in audits and the potential consequences of not meeting the audit timetable by April 2024. Reshma Ravikumar explained the statutory backstop, and outlined plans to recover from previous disclaimers in future audits. The Directory of Finance reassured Members of ongoing efforts to expedite recovery through revaluations and emphasised the importance of changing the system to prevent future backlogs.

In response to a question raised regarding the opening balance for the fiscal year 2023-24 and the implications of disclaimers on accounts; the officer explained that achieving an assured opening balance will take several years, and emphasised the importance of a complete revaluation of fixed assets to eliminate disclaimers for future audits.

Janet Dawson introduced her report which highlighted the introduction of new legislation that sets a deadline for audit completion and the updated audit practices from the National Audit Office (NAO). The speaker reassured the committee that the review of arrangements for value for money has not revealed significant weaknesses, emphasising the importance of the committee’s approval of the accounts before the impending deadline.

Members expressed concerns about the late distribution of the supplementary papers on the Statement of Accounts Update, reflecting the previous discussion when the committee agreed to take the late item.

Councillor Tony Humphreys moved the recommendation that the Audit Committee:

1. Approve the Statement of Accounts 2020/21
2. Approve the Statement of Accounts 2021/22
3. Approve the Statement of Accounts 2022/23
4. Approve the Letter of Representation 2020/21
5. Approve the Letter of Representation 2021/22
6. Approve the Letter of Representation 2022/23

On being put to the Committee the motion was declared CARRIED by the Chair, the voting being 5 For, 0 Against, 1 Abstention.

RESOLVED:

That the Audit Committee:

1. Approve the Statement of Accounts 2020/21
2. Approve the Statement of Accounts 2021/22
3. Approve the Statement of Accounts 2022/23
4. Approve the Letter of Representation 2020/21
5. Approve the Letter of Representation 2021/22
6. Approve the Letter of Representation 2022/23