Agenda item - External Audit Findings Report for Somerset West & Taunton 2022/23

To consider the external auditor's report on the planned scope and timing of the statutory audit for Somerset West & Taunton Council 2022/23 Statement of Accounts for those charged with governance.

9(b) Audit Findings Report from Grant Thornton - to follow.

Councillor Mandy Chilcott proposed the amendments to the audit findings report for Somerset West & Taunton Council 2022/23 which was seconded by Councillor Mike Caswell.

Having been duly proposed and seconded the Audit Committee RESOLVED to approve the Audit Findings Report for Somerset West & Taunton Council 2022/23 subject to the amendments.

Councillor Andy Sully proposed delegating approval for the Somerset West & Taunton for 2022/23statement of accounts to the Executive Director Resources and Corporate Services in conjunction with the Chair or Vice-Chair, once any outstanding matters have been resolved which was seconded by Councillor Tim Kerley.

Having been duly proposed and seconded the Audit Committee RESOLVED to delegate approval for the Somerset West & Taunton for 2022/23statement of accounts to the Executive Director Resources and Corporate Services in conjunction with the Chair or Vice-Chair, once any outstanding matters have been resolved.

Councillor Norman Cavill proposed the Somerset West & Taunton for 2022/23 Letter of Representation 2021-22 subject to there being no material changes to the accounts which was seconded by Councillor Andy Sully.

Having been duly proposed and seconded the Audit Committee RESOLVED to approve the Somerset West & Taunton for 2022/23Letter of Representation 2021-22 subject to there being are no material changes to the accounts.

The Audit Committee noted the additional fees as set out in the attached appendix.

The Manager for Public Sector Audit presented the report highlighting the fact that the audit was substantially complete and the audit opinion will be unqualified.

She went on to explain that the report highlighted that the value for money work was not yet complete and the auditors annual report would be issued later in the year and there was a letter explaining this delay sent to the Chair and was included in the report.

The report showed two significant risks, the valuation of investment property and the valuation of land and buildings which resulted in some material changes to the accounts being made. Revisions had to be made in the fixed asset register to adjust the financial statements.

The question was asked why the material requirements planning (MRP) was lower.

The Case Officer Support Services explained that it was not surprising that the MRP is lower as year on year it goes up or down. The MRP is based on the close imbalance of the capital finance requirement each year when the budget is set based on the capital budget and the estimated borrowing that was planned. As often was the case the borrowing may not materialise. The Case Officer Support Services explained that was how MRP worked in general. The specifics on why it went down for Somerset West and Taunton, he would need to take away and provide a written response to the committee once he had the details.

It was queried as to why the Brewhouse was not included before and the Case Officer Support Services confirmed that this was because it was leased with a third-party organisation. The agreement previously was that it would be included at 0 value and this was at the discretion of Somerset West and Taunton. It was now reviewed because of the responsibility of the Council around maintenance of the building and in his view it was incorrectly included at 0 value and therefore should be revalued and included at its proper value as per a professional value estimate. This had to be included in for this year and done as a prior period adjustment which could not go back longer than one year.

The Audit Committee RESOLVED:-