Agenda item

To receive an update from the Chief Finance Officer on the External Audit Plan 2020/21 – TO FOLLOW.

(Mr M Hodgson, Audit Partner, Ernst & Young LLP was in attendance for consideration of this item).

The Committee received a report by the Chief Finance Officer (a copy of which is appended in the Minute Book) to which was attached the Council’s External Audit Plan 2020/21, which had been produced by the Council’s External Auditors, Ernst & Young LLP.

The Chief Finance Officer delivered a brief introduction to the report where it was noted that the Audit Plan provided an overview of the 2020/21 strategy, outlined audit risks and value for money risks, provided information on audit materiality and the scope of the audit and included detail on the audit team, audit timeline and independence.

Referring to the report, Mr M Hodgson drew the Committee’s attention to key messages contained within the report which included planning materiality, performance materiality and audit differences. In terms of the former, it was reported that this had been set at £2,112 million representing 2% of the previous year’s gross expenditure on the provision of services. Attention was then drawn to the audit risks and the areas of focus and an explanation was delivered on each new or increased risk. Value for money was then discussed, where it was noted that risk assessments had been undertaken on the Council’s arrangements to enable commentary to be provided under the three reporting criteria. He then concluded by drawing Members’ attention to the provisional audit timeline and the scale of the audit fees.

In response to questions which had been raised, Mr Hodgson confirmed that detailed information on the phasing plan produced for the audit had previously been shared with all Section 151 Officers and that a buffering period of one week had been built into the existing plan either side of the audit. If the Council’s planned audit had not been completed within the agreed timeframe then auditing would cease and investigations put into a queue alongside other authorities who may be in a similar position. In response to subsequent questions, it was confirmed that the District Council’s audit was due in the penultimate phase and that it was not envisaged that there would be a long period to wait if the audit was not completed on time. In the event of delays with the audit, the Chief Finance Officer confirmed there would be a process to follow in the event of delays with the publication of the accounts, which would be similar to the process adopted with the previous year’s accounts.

Other matters that were discussed included whether the external auditor’s value for money assessment would be produced in time for the Committee’s next meeting on 14th September 2021 and the potential reporting of significant weaknesses in the Council’s arrangements for delivering value for money. In terms of the latter, the Committee were reminded of the role of Senior Leadership Team in providing assurances to Members in the handling of its financial and business affairs including its response to the COVID-19 pandemic.

Whereupon, it was

RESOLVED

(a)  that the content of the External Audit Plan 2020/21 as attached as an Appendix to the report now submitted be noted; and

(b)  that the timetable for reports and updates to the Committee as set out in paragraph 4.6 of the report now submitted be noted.