To update the committee on the conclusion of the external audit work for 2018/19.

Grant Thornton presented the report.

It was noted that an unqualified value for money audit opinion had now been issued following further work performed on significant risks.  Details of this work was detailed on pages 110 to 112 of the agenda pack. 

It was noted that the second significant risk had been in relation to the South Link Road procurement project relating to the procurement of a contractor.   The contract in respect of this procurement had not been awarded.  Grant Thornton were recommending that there was a review of the governance processes for capital projects.

Grant Thornton explained that for the value for money opinion, they looked at all the circumstances that could have arisen had the procurement process had concluded.   As the contract had not been let, there was no loss to the council.  This was the reason why the value for money was unqualified. 

Following a query from a member of the committee, the chief executive explained outcomes of the peer review are available to councillors and members of the public.  The chief executive agreed to prepare a summary of how peer reviews work and how council engages them.

Following a query from a member of the committee, it was explained that Hoople was a contractor to the council and the services it carries out on the council’s behalf.   The work is carries out on behalf of the council is audited as part of the internal audit plan and the committee can seek assurance from the internal audits.

Hoople is majority owned by the council.    The organisation has its own board and a council office sites on the board.   A concern was raised that the committee are less able to give an assurance on the financial probity or risks within Hoople as it did not review the accounts.  It was noted that this was a challenge, but group accounts are now included within the statement of accounts.   This sets out more clearly the relationship with Hoople and how that relationship works.    It was noted that when the annual governance statement was presented to the committee for review, they could consider whether that provided any assurance with regard to Hoople.      It was noted that Hoople was a Teckal company which can benefit from other work which are commissioned by the council without going through a tendering process.   This enables Hoople to provide services to other companies which Hoople does do.  

It was noted that an update on tracking of external audit recommendations would be presented to the meeting of the committee to be held on 19 November 2019.  

Grant Thornton confirmed that they were still not in a position to issue a completion certificate for the 2016/17 accounts.    Progress was being made on the confidential outstanding matters. 

RESOLVED

That the report be noted.