Issue - meetings

To receive Grant Thornton’s Audit Findings for 2021/2022.

The Committee had before it, and NOTED, a report * from Grant Thornton setting out their findings from the 2021/22 external audit.

The following was highlighted within the report:

·       Their opinion on the Council’s accounts had been provided later than planned due to a number of reasons such as capacity issues and changes to statutory regulations meaning more audit work was needed in order to complete the audit. Nationally, only 12% of audits had met stated deadlines.

·       A small number of queries remained to be resolved, however, it was anticipated that an unqualified audit opinion on the Financial Statements would be issued after this meeting.

·       Regarding the Group Accounts they were still waiting for the 3 Rivers Auditors Report which had been held up by the Business Plans needing to be decided by a special meeting of the Cabinet the following week. Grant Thornton could not issue an opinion until then.

·       To date there had been no material errors within the Financial Statements, risk was driven by materiality and this was a key area of their audit work.

·       The auditors had identified a small number of errors within the 3 Rivers accounts which they had requested be adjusted for and 3 Rivers had agreed to make the necessary changes.

·       Whether a company or ‘an entity’ was a ‘Going Concern’ was a key consideration within the issuing of a final opinion. Grant Thornton were confident that the Council could meet its obligations within 12 months time.

·       An estimation difference had been identified which had arisen as part of Grant Thornton’s debtors testing, specifically long term debtors. A figure of £128k had been identified by Grant Thornton meaning that the Council had a slightly longer long term debtor than was being disclosed. This would be more money that would be received in due course. This was not material to the accounts but needed to be formally minuted.

·       Work was underway on the Value for Money opinion which had a slightly later deadline than the Statement of Accounts. A draft report would be with officers by the end of February.

·       An ‘Emphasis of Matter’ was explained as an opinion the 3 Rivers auditors may wish to make.  

Consideration was given to:

·       Whether the Council would still be classed as a ‘Going Concern’ should 3 Rivers be wound up.

·       Whether further adjustments in relation to the Impairment figures would need to be made.

The Committee requested that their disappointment at the delay’s involved in the Cabinet reaching a decision about the future of 3 Rivers be referred back to the Cabinet as soon as possible. It was the Committee’s opinion that a decision should have been reached in a much more timely fashion in order to inform the budget for next year.

Note: * Report previously circulated; copy attached to the signed minutes.