Agenda item
External Audit Findings Report and Audit Conclusion for Sedgemoor District Council 2022/23
To consider the report.
To follow: Appendix 1 - Legacy Sedgemoor District Council’s Statement of Accounts 2022- 23
Decision:
The Audit Committee:
1. Approved the Statement of Accounts as attached in Appendix 1 of the report, once any outstanding matters have been resolved.
2. Approved the updated Annual Governance Statement as included within the Statement of Accounts.
3. Noted the Audit Findings report from the external Auditors Grant Thornton UK LLP as per Appendix 2 of the report.
4. Approved the signing of the letter of representation as per Appendix 3 of the report.
Minutes:
The Chair welcomed the Key Audit Partner, Grant Thornton UK LLP, Julie Masci.
The Key Audit Partner, Grant Thornton UK LLP, Julie Masci, presented the report, highlighting: that the 2022/23 external audit for Sedgemoor District Council had been finalised; that the audit finding report issued by Grant Thornton UK LLP presented an unqualified opinion of the audited accounts, accompanied by findings of the external auditors; including an emphasis of matter paragraph highlighting the Council's demise and the creation of Somerset Council from 1 April 2023; confirmed all outstanding work had been concluded; key findings and two significant matters: the Northgate yard asset and exit packages.
The Audit Committee asked a number of questions and made a number of comments which were responded to at the meeting, as follows:
- Northgate Yard asset valuation change and reduction and property revaluation timescales and trends – Head of Corporate Finance, Ben Bryant, advised of the work with property services to provide asset classification and valuation, including assets under construction.
- Amendment page 39, from: -
Somerset West and Taunton invested a £37m commercial property portfolio in the three years to 2021/22
to
Sedgemoor District Council invested a £37m commercial property portfolio in the three years from 2021/22 - Head of Corporate Finance undertook to amend the report.
- Late supplemental reports and the challenge and pressure for Members to understand the level of detail –The Chair commented on the enormous and exceptional workload of the Audit Committee for 2023 – 2024, and projected a reduction in workload for 2024/25, with a view to ensure that reports are received in a timely matter.
- The audit work completed remotely through October 2023 – March 2024, the Director PSA Head of Audit Quality - Regulation, Audit Grant Thornton UK LLP, Barrie Morris, advised that audit remote work is more costly than onsite audit work, the Executive Director - Resources and Corporate Services, Jason Vaughan and Barrie Morris confirmed the intention to encourage teams, where reasonably possible, to work onsite to complete audit work for 2023/24.
- The significant ramifications of not having the 2022/23 audits completed by 30 September 2024, including the formal action taken by the Government to address the national audit crisis.
- The value of using the cover report to highlight any key elements within reports and expected verbal updates.
- Pension fund values and impact of the triennial revaluation of liabilities and changes in actuarial assumptions.
Cllr Mandy Chilcott advised that there was no disagreement with what had been presented, however, without having had oversight of the previous audit reports or accounts for the predecessor council Sedgemoor District Council, she felt unable to make comment, agree or disagree or support the sign off.
Following consideration of the officer report, appendices and discussion, the Audit Committee:
1. Approved the Statement of Accounts as attached in Appendix 1 of the report, once any outstanding matters have been resolved.
2. Approved the updated Annual Governance Statement as included within the Statement of Accounts.
3. Noted the Audit Findings report from the external Auditors Grant Thornton UK LLP as per Appendix 2 of the report.
4. Approved the signing of the letter of representation as per Appendix 3 of the report.
Supporting documents:
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Cover Report SDC 22-23 final accounts, item 79.
PDF 74 KB
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Appendix 2 Grant Thornton UK LLP 2022-23 Audit Findings Report, item 79.
PDF 8 MB
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Appendix 3 Legacy Sedgemoor District Council’s Letter of Representation, item 79.
PDF 143 KB
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Appendix 1 – Legacy Sedgemoor District Council’s Statement of Accounts 2022-23, item 79.
PDF 1 MB