Agenda item

Members heard from the External Auditor who detailed the progress made on the risk assessment, he explained that the audit plan had been brought to Committee on 16 April 2024, and that the resulting Value for Money Risk (VFM) Risk Assessment was one component of the audit plan, and that a statement of financial accounts formed the second.

The Auditor provided a verbal update on the statement of financial accounts separately to the Value for Money Risk Assessment, explaining that as they approached the end of the audit there were no significant concerns. He explained that with regard to the Value for Money Risk Assessment, no significant risks of weakness had been identified; however, some improvement opportunities were highlighted regarding the medium-term financial plan, namely, the appropriateness of the identification and development of savings plans, and the monitoring of those saving initiatives.

It was further explained that the audit covered the effectiveness of governance processes, with no significant concerns identified; however, some improvement opportunities were identified, firstly, in relation to the timing of the Council’s Risk Management Strategy, which was currently being reviewed. Secondly, he highlighted that there was an opportunity for reflecting upon the Council’s process of procurement regarding contract exceptions. Thirdly, it was outlined that there were some opportunities for improvement and potential lessons to be learnt from the Council’s performance and provision of services, when compared to other similar authorities. Finally, he explained that there were considerations to be made regarding operating in partnership with other bodies.

The Auditor brought attention to the next steps for their team, which were to complete the work on financial statements, and then to build upon the findings of the audit if there were any other risk areas or observations identified. The work would then enter a public commentary phase, where the findings would be available to view on the Council website.

In response to a query from Members regarding the availability of the financial statements element of the audit, it was clarified by the Auditor that the report was due to be finalised and brought to the Committee in November 2024, ahead of the delayed statutory instrument deadline of February 2025 set by central government.

Members thanked the Auditor, and remarked on the report’s complexity and comprehensiveness, noting that the risk assessment outcome was low. However, concerns were raised that the Risk Assessment Management Strategy had not yet been released, to which the Section 151 Officer responded that the release of this strategy was dependent on the increased Member uptake in the completion of the Risk Management Questionnaire. Members were satisfied with this response, and the Section 151 Officer explained that the questionnaire would be recirculated to increase participation.

In light of potential financial constraints from central government, Members sought assurance that the findings of the audit had informed the Council’s forward planning, which was confirmed by the Section 151 Officer.

Having been moved and seconded, it was unanimously

RESOLVED that members had considered the content of the report and identified any actions required.