To provide the committee with a progress update of the work being undertaken by the external auditor, Grant Thornton.

It was noted that due to Covid-19 the external audit timetable had been extended to 30 November.    The audit had been a slower process than normally expected but measures were now in place to progress it.

The effect of Covid-19 on the value for money opinion would be a factor for the 2020/21 audit.

The Redmond Review had been published and Grant Thornton would be presenting a report to the committee at its meeting on 14 October on the recommendations contained within the review.

Following a request from Grant Thornton, the council had amended information in a couple of areas (details contained on page 44 of the agenda pack).  It was reported that there were no common threads as to the areas which had been requested to be amended. 

Grant Thornton confirmed that they were no difficulties in obtaining the information required for the audit and there were secure file sharing processes in place. 

It was noted that there would be uncertainty over property valuations for some time but this would have very little direct impact on councils as property valuations do not drive council tax levels.   However, Grant Thornton would urge caution in connection with the valuation of commercial property.

Following a query from a member of the committee, it was confirmed that there would be 6-9 months’ notification of any potential issues in connection with a S114 judgement.  Details would come through Cabinet, Audit and Governance Committee and other committees.  It was noted that the council would have to make tough budgeting decisions due to the Covid-19 but the Chief Finance Officer was comfortable that there were sufficient reserves and that the council were engaging with stakeholder groups, including Government.    The position was being actively monitored. 

Following a query from a member of the committee, it was confirmed that there was liaison between internal and external audit.  The internal audit plan was developed on a risk basis and that a number of sources were used in developing the plan.   There would be audits where no control issues had been identified.   If this was the case, then the area would not be audited for approximately 3 years.

RESOLVED that

the progress report and sector update attached at appendix 1 was reviewed.