Agenda item

External Audit Findings Report and Audit Conclusion for South Somerset District Council 2022/23

Report and Appendices to be published 25 March 2024.

Decision:

The Audit Committee  

 

1.     Noted the status of the ongoing audit by reviewing the latest Audit Findings report from the external Auditors Grant Thornton UK LLP, as per Appendix 1 of the report 

 

2.      Noted the revised Statement of Accounts as attached in Appendix 2 of the report for South Somerset District Council for 2022/23.  

 

3.    Delegated approval for the final accounts to the Executive Director of Resources and Corporate Services in conjunction with the Chair or ViceChair, once any outstanding matters have been resolved provided below materiality threshold. 

 

4.     Delegated approval for the signing of a letter of representation, alongside point 3. 

 

5.      To receive the final External Audit Findings Report and Audit Conclusion for South Somerset Districtat 30 May 2024 meeting of the Audit Committee. 

 

Minutes:

The Chair welcomed the Director and PSA Head of Audit Quality - Regulation, Audit Grant Thornton UK LLP, Barrie Morris and PSA Director, Grant Thornton UK LLP, Beth Bowers.

 

The Audit Committee received the External Audit Findings Report and Audit Conclusion for South Somerset District Council 2022/23.

 

The Director and PSA Head of Audit Quality - Regulation, Audit Grant Thornton UK LLP, Barrie Morris, presented the report, highlighting: that following an exceptional workload for the Audit Committee, in receiving 10 sets of accounts to consider and sign off, the aim that all reports going forward, to be issued in line with the normal committee time scales;  summarised the delays that the audit had experienced, including staff capacity, loss of knowledge and quality of documentation held; summarised the number of items without sufficient evidence to conclude the audit, and the expectation to complete in April 2024; the options to the Audit Committee to consider for sign off on the report, including delegation to the Chair, where there are no material changes and the report to brought back to 30 May 2024 Audit Committee meeting; and that any further delays in completing the audit would have significant impact on the timely completion of the 2023/24 accounts.

 

The PSA Director, Grant Thornton UK LLP, Beth Bowers, further added to the above points, highlighting; the progress on the outstanding items since publication of the report and the outstanding work planned to be completed in April 2024; that the materiality set for the financial statements audit remained the same; and the detailed reporting set out against each area, both outstanding and concluded.

 

The Audit Committee asked a number of questions and made a number of comments which were responded to at the meeting, as follows:

 

        The financial statements key findings arising from the group audit accounts and the significant issues relating to the review of the component auditors work - Beth Bowers advised that further detail could be obtained by request of copies of the accounts through Old Mill Accountants.

 

        Clarification of the auditor risk identification of management overrides of journal entries and management control environment, fraud and manipulation of the financial transactions. 

        The delegated authority to the Chair to sign off the accounts, including concerns of outstanding actions and the pragmatic way forward to provide a baseline for the new Council audit 2023/24 – Barrie Morris and the Executive Director - Resources and Corporate Services, Jason Vaughan, emphasised the importance of the Audit Committee to provide critical challenge.

        The complexity and length of time to progress property queries - The Service Director Finance and Procurement, Nicola Hix, paid tribute to the Finance and Property teams for the hard work and going above and beyond expectations to complete the report.

        The necessary member and public oversight and transparency, with the final report to be received by the Audit Committee on 30 May 2024.

        The national significant delays in the completion of audit work and the issuing and ongoing challenges of audit opinion completion across the Local Government sector, comparison with other Local Authorities

 

The Deputy Leader and Lead Member for Resource and Performance, Cllr Liz Leyshon, paid tribute to the incredibly diligent working and phenomenal effort and work of the Finance team, the Audit Committee, the predecessor Councils and Auditors on the work achieved.

 

The Chair summarised the position of the accounts, and paid testament to all involved in providing a solid base to start the Somerset Council 2023/24 audit. 

 

Cllr Mandy Chilcott, proposed, Cllr Mike Hewitson seconded, and the Audit Committee agreed, an additional recommendation:

 

5.        To receive the final External Audit Findings Report and Audit Conclusion for South Somerset District at 30 May 2024 meeting of the Audit Committee.

 

Following consideration of the officer report, appendices and discussion, the Audit Committee

 

1.        Noted the status of the ongoing audit by reviewing the latest Audit Findings report from the external Auditors Grant Thornton UK LLP, as per Appendix 1 of the report. 

 

2.        Noted the revised Statement of Accounts as attached in Appendix 2 of the report for South Somerset District Council for 2022/23. 

 

3.        Delegated approval for the final accounts to the Executive Director of Resources and Corporate Services in conjunction with the Chair or Vice Chair, once any outstanding matters have been resolved provided below materiality threshold.

 

4.       Delegated approval for the signing of a letter of representation, alongside point 3.

 

5.        To receive the final External Audit Findings Report and Audit Conclusion for South Somerset District Council at the 30 May 2024 meeting of the Audit Committee.

 

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