Agenda item

To receive the Audit Results Report, Letter of Representation, Statement of Accounts and Annual Governance Statement. ANNUAL GOVERNANCE STATEMENT APPENDIX TO FOLLOW.

With the aid of a report prepared by the Director of Finance and Corporate Resources (a copy of which is appended in the Minute Book), the Committee received the Audited Statement of Accounts 2021/22 and Annual Governance Statement for publication.

Auditors from Ernst and Young presented the report which included updates on the five areas of work concluded since the April 2023 Audit Report and the decrease of the Council’s Pension liability as a result of the Triannual Report on Pensions. Further information with regard to value for money would be included in the Auditor’s Annual Report when produced. The Fixed Asset Register had been highlighted in the April 2023 Audit Report and a new Fixed Asset Register would be used henceforth using data from the March 2022 balance sheet. This had led to a significant number of audit adjustments including to revaluation reserves, capital accounts, asset investments, assets held for sale, One Leisure and the Huntingdon Multi-storey Car Park.

Councillors Harvey and Jennings asked whether time had been allocated for the 2022/23 audit of Huntingdonshire to allow the auditor to meet the necessary timeframes. They were informed that the deadline for the 2022/23 Audit Financial Statement was in three days and that most audit suppliers had yet to start work on this. Thus, a date for the current year’s audit had not been scheduled.

Ernst and Young thanked Councillor Howell for asking if there were anything the Council could do to reduce audit times, however, nationally progress against the public sector audit market could not be made until the Minister determined whether the priority of the market was a reset or to provide maximum assurance. Until this point, delays in public sector audits would increase. In February 2023, prior to the Minister’s announcement, auditing firms had released a letter stating that no 2022/23 audits would commence prior to November 2023.If an audit reset was demanded, the 2022/23 audit may be cancelled in favour of catching up to timelines. Equally, Councillor Hodgson-Jones highlighted that guaranteeing maximum assurance would create additional delays but was informed it was unlikely maximum assurance would be delivered to only some local authorities, although it was recognised some Councils did require greater intervention from DLUHC than others.

Councillor I Taylor was informed that external audit was a statutory requirement of local authorities appointed to registered public sector auditing bodies. This pool was limited to six or seven auditors, two or three of which had exited the market for the 2023/24 audit year. This had contributed to delays.

Councillor Gray noted that investment property balance had reduced between 2020/21 and 2021/22. The Fixed Asset Register valuation had been partially impacted by changes in the land/building split for two investment properties.

The Director of Finance and Corporate Resources confirmed with the Chair and Councillor Gray that the Annual Governance Statement, a replica of the March 2023 statement, had been signed today at the auditor’s request and that she was content for the Letter of Representation to be approved.

Whereupon, it was

RESOLVED

(a)  that the Audit Results Report (Annex A) be received and noted;

(b)  that the letter of representation (Annex B) be approved and the Director of Finance and Corporate Resources (as Section 151 Officer) be authorised to sign it on behalf of the Council; and

(c)  that the Chair of the Committee in consultation with the Director of Finance and Corporate Resources (as Section 151 Officer) be authorised to sign the audited Statement of Accounts (Annex C) on behalf of the Council subject to the auditors confirming an unqualified opinion on the SOA 2021/22.