Meeting documents

To consider this report.

Barrie Morris fromGrant Thornton presented the report and highlighted the following key points. 

·                     Page 58 is an Introduction to audits and the four significant risks –  

1.             Revenue transactions 

2.             Management override of controls 

3.             Valuation of land and buildings 

4.         Valuation of net pension fund liability 

·                     Materiality - 13.5 mil materiality with a 1.5% gross expenditure. This means that there Is a good control environment in place at the council. 

·                     Page 60 provides more detail of work in relation to significant risks.  

·                     Page 62 details other risks such as infrastructure assets which is a national issue. Many local authorities with material infrastructure have not been properly following audit practice and the code for accounting in relation to recording assets.  

·                     Page 71 is about the audit team and page 72 to73 details the audit fees. 

·                     Page 74 shows the certification of the Teachers’ Pension Scheme. 

Questions 

·                     Cllr Kerley asked about property valuations and the national issue.He asked how SCC compares to other authorities who may be experiencing this issue as well?The officer advised that the issue was widespread and largely due to theincrease in demand for valuation of land and buildings.   

·                     Cllr Davies asked about Infrastructure assets and specifically historical buildings. He asked if these were being undervalued because they need repairs.The officer explained that valuations would consider the ‘as new’ value of the property, and then factor in depreciation and how much work must be undertaken,to reach the net book value.  

·                     Page 70 - Cllr Sullyasked about transactions to new authority. He asked why this is not looking at ‘22/’23 budgets?The officer advised that auditors usually look in the past and have reviewed financial statements up to 31st March ‘22. He added that they also have regard to lessons learned and build this into the ‘22/’23 budget audit.  

·                     Page 57 - Cllr Chilcott asked about climate change and asked if there are currently any financial assumptions or costs in place to meet this goal.  

·                     Page 58 - Cllr Chilcott asked about value for money arrangements and specifically the weaknesses identified. When would is this review coming back to committee? 

·                     Page 96 –Cllr Chilcott queried audit fees and the extra £10000 added to cost and questioned how remote working has caused an extra £10000 worth of audit work. What ways of working are causing the increase in fees?  

·                     Page 61 - Cllr Bakerasked about valuation of land and buildings. He asked for more details on the tender process for valuers? He asked for reassurance that there no conflicts of interest here. The officer advised that grant Thornton use three valuation firms,all of which are experienced in the public sector and suitably qualified, with no pre-existing or current relationships with the council.  

·                     Page 53 – Cllr Lewis asked about cash handling and its deferral. He was concerned that this was a significant risk in the past. THIS QUESTION REFERS TO INTERNAL AUDIT ITEM 6.