Agenda item

To receive a verbal report on the Audit of 2017/18 Accounts from the External Auditors

Minutes:

Suresh Patel updated the Committee on the audit of the 2017/18 accounts. He explained that the plan was for External Audit to sign off the 2017/18 accounts in August and no work would be carried out on the accounts until then. In response to concerns regarding capacity, Suresh Patel explained that Ernst & Young were currently recruiting, although it was noted that August was a time when both auditors and accountants went on leave.

 

2018/19 Accounts

It was noted that External Audit could not work on the 2018/19 accounts until the 2017/18 accounts were signed off. Suresh Patel explained that the plan was for the 2018/19 accounts to be signed off by Christmas 2019. This would mean that the accounts for 2019/20 could be signed off on time.

 

The Deputy Head of Finance explained that the priority was to get the 2018/19 accounts signed off as soon as possible. To this end, officers were working on the 2018/19 accounts to ensure that they would be ready for External Audit in December this year.

 

External Audit’s fees

It was suggested that External Audit should offer a refund on their charges for the 2018/19 accounts, as they would be completing the audit late and this would cause disruption to the Accountancy Service. Suresh Patel explained that it was more efficient for External Audit to complete all their work on the 2017/18 accounts in August, than to continue to work piecemeal on these accounts.

 

It was suggested that as Ernst & Young were not working on the Council’s 2018/19 accounts during the months of May to July, they should be available to work on our 2017/18 accounts during this time. Suresh Patel explained that the audit of 2018/19 accounts had not been scheduled for May to July as he had not expected them to be ready.

 

It was noted that under the current arrangements, the Public Sector Auditor Appointments Limited was responsible for appointing the Council’s external auditor.

 

Value for money conclusion

It was noted that Suresh Patel would be meeting with the Interim Executive Director and Chief Executive shortly, to discuss this issue. He agreed to update the members of the Committee following this meeting. Suresh Patel also explained that External Audit would have to consider issuing Section 24 recommendations to full Council regarding the failure to sign off accounts. Council would have 30 days in which to respond. This matter would also be discussed with senior officers at this meeting.

 

Task and Finish Group

The Chairman, Councillor Tony Mason, explained that a Task and Finish Group would be set up to monitor the progress of signing off the accounts and would report progress to the rest of the Committee.

 

Staffing

It was noted that the Interim Executive Director would leave the authority next month. The Deputy Head of Finance explained that new staff had been recruited to accountancy and he was confident that the Council had the capacity to complete the necessary work to get the accounts prepared for External Audit in time for the stated deadlines. Councillor Heather Williams suggested that it would be useful for the Committee members to have an organisational chart for the Council’s finance team.

 

Timescales

Frustration was expressed at the fact that the 2017/18 accounts were still not signed off and at each meeting the Committee were given a new timescale, which then was not met.

 

Actions

The Committee were promised

·         Training on the Investment Strategy.

·         An effective Audit toolkit from Ernst & Young.

 

The Committee agreed to receive an update from the External Auditors at the next meeting in July.