Issue - meetings

To receive the External Auditor’s Annual Report for 2023/2024.

Ms C Mellons, Audit Partner, Ernst and Young LLP, was in attendance for consideration of this item.

The Committee received and noted a report by the Corporate Director – Finance and Resources (a copy of which is appended in the Minute Book) providing an update on the findings of the external auditors for the audit year 2023/24.

Ms C Mellons, the Council’s Audit Partner advised that there was no new content to report since the previous meeting and drew attention to the commentary which had been provided in respect of the financial statements and value for money conclusions.

Councillor J A Gray expressed his disappointment that despite the audit being completed, the Council was not in a position to sign off the accounts. In noting there was a going concern, he then queried how much of this was attributed to the availability of resources within Ernst & Young and internally within the Council. Ms C Mellons responded that owing to the disclaimed audit opinion, the audit results report was where assurance had been received, with particular mention being made to the balance sheet. Whilst a detailed review had not been undertaken at the time, the Committee were informed that the External Auditor’s were not required to give an opinion on going concerns as part of the 2023/24 audit. In response to a subsequent question, the Corporate Director – Finance and Resources confirmed that she had prior sight / knowledge of the disclaimed audit opinion and that such opinions were not uncommon in the local authority sector. Furthermore, she acknowledged that this wasn’t the ideal position to be in but that the Council should now look to the future going forward.

Attention was then drawn to a number of factual inaccuracies within the report and concern was raised over the significant weaknesses which had been identified in the value for money arrangements for governance. In terms of the former, the Corporate Director – Finance and Resources agreed to investigate the inaccuracies outside of the meeting. Councillor P J Hodgson-Jones made comments in relation to the timing of report. His view was that the report should have been presented a month earlier and other local authorities had held special meetings for this purpose. Ms C Mellons responded that the External Auditors had three months from signing off the 2023/24 accounts to produce their Annual Report which was stipulated by the National Audit Office. The accounts were signed off at the 29th January 2025 meeting where an update on the audit position was also delivered to the Committee at the time. Furthermore, it was confirmed that the lack of External Audit resource did not impact upon the audit opinions given.

In response to a question raised by Councillor I P Taylor concerning gaps in the internal audit provision, the Corporate Director – Finance and Resources reported that these issues were historic but that since her arrival in October 2024, steps had been taken to address the matter and put adequate resources and support in  ...  view the full minutes text for item 61