Agenda item

Georgia Jones, Audit Manager presented the report. 

The Auditor’s Annual Report confirmed the final opinion on the financial statements and the outcome of the review of the Authority’s value for money arrangements for securing economy, efficiency and effectiveness in its use of resources.

The report re-affirmed the draft opinion on the accounts previously reported to the Committee that they had completed their audit of the Authority’s financial statements and issued an unqualified audit opinion on 30 November 2022.

The review of value for money arrangement covered the 3 areas of: i) financial sustainability; ii) governance and iii) improving economy, efficiency and effectiveness. The auditor’s review did not identify any significant weaknesses in arrangements across any of these areas, but had made 2 improvement recommendations as set out pages 63 and 64 of the agenda pack as now considered by Members:

1.    Recommendation – That the Authority should continue to closely monitor the delivery of its savings and efficiency plans to minimise the reduction of reserves and achieve strategic objectives. Management Comment - Agreed, this was usual practice but had slipped due to staff vacancies;

2.    Recommendation – That the Authority should closely track the delivery of its capital programme to ensure any ongoing slippage did not impact the delivery of its strategic objectives and longer-term plans.  Management Comment – Agree, we already do this.

The Director Corporate Services explained that the Service faced challenges with the deadline for the completion of the accounts for a number of reasons: i) the deadline had moved several times over previous years (including due to the Covid pandemic), ii) experienced officers had left the finance team; iii)  and with the Service implementing the new Oracle Fusion financial system. It was noted that the government deadline for preparing the draft accounts was by the end of May (with the creation of the accounts by the end of July) however, there was a consultation taking place to extend this deadline.

Georgia Jones advised that the external audit could not take place until the accounts were finalised and therefore the outcome of the consultation was awaited.  Even if the deadline for audited local authority accounts to be published moved into September, it still may not be achieved given the challenges outlined.  She provided reassurance however, that she would work closely with the newly appointed Director of Corporate Services.  CC Singleton queried whether there were any implications if the deadline could not be met.  In response, Georgina Jones explained that the government wanted to bring the deadline forward to enable it to generate its own accounts (which included public sector accounts such as from local authorities and other bodies).  This was for efficiency purposes and to support decision-making.  There was no real impact on the Authority if the deadline could not be met (ie: there were no punitive measures however, questions were sometimes asked at a Public Accounts Committee).

In response to a question from County Councillor Hennessy regarding the improvement recommendation outlined on page 64 of the agenda pack, the Director of Corporate Services provided reassurance that the delivery of the capital programme was monitored by the Resources Committee. 

Resolved: - That the Committee noted and endorsed the report.