Issue - meetings

The Committee heard from the External Auditor who provided an overview of the year-end report, known as the ISA260, which was required under the Local Audit and Accountability Act and various auditing and ethical standards. It was recalled that the Audit Plan, which had been presented at the April 2024 Governance and Audit Committee meeting, had set out materiality levels, risks to be examined, and the aims of the audit. It was explained that the current report built on that by providing the findings. The Auditor noted that the audit was substantially complete, pending the receipt of signed management representation letters, financial statements, narrative statements, and the Annual Governance Statement. It was highlighted that a clean audit opinion was anticipated, indicating that the accounts provided a true and fair view of the Council's financial performance and position as of 31 March 2024.

The Auditor continued, detailing audit misstatements which had been identified, alongside the Officer amendments to those misstatements, and any audit recommendations. It was outlined that four significant risks had been identified, as well as two other risks. One misstatement was highlighted by the Auditor, specifically in relation to the year-end value of surplus land. It was confirmed that the misstatement had since been amended in the accounts. The Auditor then emphasised that overall, valuations were deemed optimistic, but within an acceptable range. A minor point regarding management review controls over valuation was raised, with the Auditor acknowledging that it was typically inappropriate in a public sector setting to use an additional valuer to meet auditing standards.

The Auditor detailed the process involved in auditing the valuation of investment properties, noting that the Audit Team were comfortable with the valuations.

The Audit Team had identified a risk in relation to the valuation of the local government pension scheme, including the associated liability; the Auditor highlighted a necessary adjustment of £7.9 million, which it was confirmed had since been made.

Another identified risk, it was explained, was related to management override. The Auditor highlighted that an issue regarding the segregation of duties had been identified, which it was confirmed had since been rectified.

The Auditor also addressed other audit risks, such as recognition surrounding revenue expenditure capital expenditure, and confirmed that no significant concerns were raised in these areas. It was stated that the narrative statement and Annual Governance Statement had been reviewed, with no misleading information found. In addition, no significant concerns regarding Value for Money had been flagged by the Audit Team.

The Auditor continued his presentation outlining the audit fees, including an additional fee of £9,500 for the revised ISA315, and an additional fee of £8,000 for the completion of the audit. It was confirmed that audit fees were set by Public Sector Audit Appointments (PSAA).

The Audit Team’s independence was confirmed by the Auditor. The presentation was concluding with a summary of recommendations. It was noted that appropriate changes had been made in response, and all identified audit misstatements had been corrected by Officers. The Auditor  ...  view the full minutes text for item 115