To consider the external audit findings report for the year ended 31 March 2024.

N.B Appendix 1: The Audit Findings (ISA260) Report for Herefordshire Council year ended 31 March 2024 – papers to follow.

The Director of Finance (DOF) introduced the report and offered her thanks to the Senior Manager (SM), Grant Thornton (GT) and her team for their hard work and dedication. The following principal points were noted:

·       The draft accounts were published on 31st of May in line with the statutory deadline. At that point it was noted by the auditors that the expenditure in the council’s comprehensive income and expenses statement exceeded the £500 million threshold which prompted a change in their audit classification to “a major local audit”. As a result, additional procedures, the audit scope and layers of review were undertaken by GT, an additional partner review and technical review. This inevitably presented some changes in the council’s disclosure and presentations in the accounts which were detailed in the audit findings report.

·       No material errors had been found and where auditor’s had recommendations these had been accepted and where appropriate corrections made straight away, or action plans put in place to remedy.

The SM advised the committee they planned to give an unmodified opinion, later in the agenda subject to some items that were still outstanding. These included:

·       A response from the external property valuer had been received, and that work was completed and was subject to review.

·       A letter was expected from the engagement lead for the pension fund audit which would enable GT to complete and close on this work.

·       GT were awaiting final sign off on the hot review and ethics process.

·       Their aim was for the accounts to be signed off by the statutory deadline of 30 September.

The Public Sector Audit Manager (PSAM) GT provided the committee with details on the recommendations that had been made, the errors that had been found and what had been done to remedy those.

In response to committee questions, it was noted:

1.     The PSAM advised that some software packages would not allow journals to be posted unless it had been approved by an appropriate approver. Unfortunately, the council’s software did not accommodate this, and it was advised that this could be achieved by an appropriate approver signing a piece of paper and scanning in as evidence or an email.

2.     The process for auditing the valuation of assets was explained.

3.     The DOF explained the presentation error with regards to the placement of the £8.4M.

RESOLVED

That: The report of the external auditor attached at Appendix 1 was considered and the committee determined that no issues raised in the report required inclusion in the committee’s future workplan.

To consider the external audit findings report for the year ended 31 March 2024.

N.B Appendix 1: The Audit Findings (ISA260) Report for Herefordshire Council year ended 31 March 2024 – papers to follow.