Issue - meetings

Verbal update from the Head of Finance (Deputy Section 151 Officer).

Resolved

(1)            That the verbal update on the External Audit 2022-2023 be noted.

Kevin Suter, Partner Assurance – Government and Public Sector at EY provided a verbal update on the External Audit 2022-23.

The Committee was advised that due to the backstop arrangements introduced by Central Government that required Statement of Accounts up to 2022-23 to be published by 13 December 2024, EY would only be able to provide a disclaimed opinion for the Council’s accounts 2022-23. The Committee was advised that this was a nationwide issue and it did not imply that there was anything wrong with the Council’s accounts, rather that it was as a result of the fact that no audit work had not been undertaken due to the backlog in the sector.

In response to questions from the Committee, the External Auditor confirmed that no work had been undertaken for the 2022-23 Accounts. This was due to delays in completing previous audits along with resourcing issues. The Committee was also advised that as opening balances would not be certified it would take time for appropriate assurances to be re-built. To prevent accounts for every susbsequent year being given a disclaimer opinion, the Financial Reporting Council (FRC) was in the process of issuing guidance for for auditors to help build assurances over the next 3 – 4 years, subject to good quality accounts.

In response to questions regarding the EY fees for the work undertaken, the Committee was advised that EY did not have a contract with CDC rather with  Public Sector Audit Appointment (PSAA), which set the fees. PSA had yet to confirm fees and would look at each audit and set an individual fee for each audit.  The Committee was advised that the Council would still receive formal assurance certificates relating to Value for Money as part of the fees being charged by EY.

Resolved

(1)            That the verbal update on the External Audit 2022-2023 be noted.