Issue - meetings

Members considered the External Audit Strategy Memorandum (Plan) for 2021/22. In presenting the report the Audit approach as detailed on page 10 of the report was highlighted.

Significant audit risks highlighted by the External Auditor included, the management override of controls; the Valuation of Property, Plant and Equipment, Investment Properties and assets held for sale; and the Valuation of Net Defined Benefit Liability (Pensions).  Key judgements highlighted being, Minimum Revenue Provision (MRP), and Group Accounts. Members were advised further information could found on pages 12 to 19 of the report.

The materiality levels applied, fees for the audit and value for money statement were briefly summarised to Members.

The External Auditor advised Members that the report focussed on changes in financial systems. Mazars were engaged with IT audit colleagues to support governance and project management arrangements, which included substantive testing around the transfer of balances.

The audit completion deadline had again begin extended from 31 July to 30 November 2022. In concluding his report, the External Auditor indicated, in extending the deadline, it had been acknowledged that a number of significant changes were in motion at West Lindsey, including team changes, implementation of a new financial system and the pending appointment of a new Section 151 Officer.

Debate ensued and in response to concerns raised about the level of fees, the Auditor advised that fee levels were approved by Public Sector Audit Appointments Ltd., and reiterated that fees for the Council’s 2021 audit would not exceed £8000. Members learnt that the trigger for an increase included identifying an item that would signify any issues and potential weaknesses in the accounts.

In responding to comments on the formatting and accessibility of the reports, Members were informed that the feedback would be passed to relevant officers, and future reports could be tweaked.

Having been moved and seconded on being put to the vote it was unanimously

RESOLVED that the External Audit Strategy Memorandum (Plan) for 2021/22 be accepted.