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

Grant Thornton presented an interim external audit report.  The audit had been undertaken remotely due to Covid-19 and had taken longer to conduct.

Grant Thornton were anticipating an unqualified opinion but there may be adjustments to the statement of accounts.   They were waiting for the council to undertake some work with regard to the capital programme which would inform the value for money opinion.   They were satisfied and had no criticism of the council’s financial sustainability and governance.  

It was expected that the audit opinion work would be concluded by the committee meeting due to be held on 24 February.  It was also hoped that the value for money work would be concluded as well but this was dependent on the council. 

As part of the discussion of the item, the following points were made.

1.     Grant Thornton were not sure whether the pending decision on the bypass (2 February 2021) would have any implications for the value for money work but it would be looked at because it was a significant item in the capital programme.   Any decision would be outside of the audit year but it is a post balance sheet event and would need to be considered.

2.     The McCloud position was in connection with pensions.  It was reported that the council and actuary had no further work to do in relation to pensions.  However, Grant Thornton did need to undertake work.  

3.     It was explained that journal authorisation was an important part of the external audit.  It was accepted that there were controls in place but believed that it ought to be bought to the attention of the committee due to its inherent importance.   It was noted that the council were considering whether the Business World system could be used or whether to continue with the controls outside of the system. 

4.     There were continuing discussions with government in connection with the outcome of the Redmond Review.  

5.     It was noted Herefordshire and Worcestershire had worked jointly to provide an explanation in connection with the valuation of the waste plant which had satisfied the auditors.

RESOLVED that

The progress update attached at appendix A was reviewed.