To review and agree the external auditor’s draft annual plan for 2024/25.

The Senior Manager (SM), Grant Thornton (GT) introduced the report of which the following principal points were noted:

1.     The report outlined the significant risk areas and audit approach for both the financial statements and the value for money audit.

2.     Significant risks for the audit approach were outlined on pages 36-39 of the report and were consistent with what the committee had seen in prior years.

3.     GT’s approach to materiality was outlined on page 45 , It was noted that the percentage applied had increased since the prior year due to an update in their internal guidance. A maximum 2% had been applied as they did not consider there to be any specific risks in the control environment at Hereford.

4.     Risks of significant weakness in Value For Money (VFM) arrangements were outlined on pages 55 and 56. 3 risks of significant weakness had been identified within the financial sustainability and improving economy, efficiency and effectiveness criteria. These linked back to the prior year’s recommendations that were raised around the budget gap, Designated Schools Grant deficit and improvements need in the Children's Social Care Services. These would remain under review and would be followed up as part of GT’s work and report alongside the audit findings report to be delivered in September.

3.              The audit logistics and team were outlined on page 58. A consistent team is in place to deliver the audit, logistics and the time frame. It was confirmed that the audit would be going into Phase 1 audit running from mid-June until late September, hoping for a timely sign off, of the accounts towards the end of September early October.

In response to committee questions, it was noted;

       i.         The SM confirmed that the improvements noted by Ofsted and the Children's Commission's Commissioner had been taken into account.

     ii.         GT identify potential signification risks as part of their planning enquiries by communicating with the Chair of Audit and management to see if anything had happened in year that they should pay particular attention to.

    iii.         It was confirmed that Inflo is a digital audit platform that they used which integrates advanced data analytics, client collaboration, and quality management. This was not a new software programme and had been used for a number of years.

    iv.         The SM advised she was not aware of any new auditing standards coming in the next few years.

     v.         It was confirmed that Herefordshire are opted into the Public Sector Audit Appointment (PSSA) national scheme who are responsible for appointing an auditor and setting scales of fees for relevant principal authorities. It was highlighted that GT are market leaders in public sector audit.

    vi.         Audits are conducted on a sample basis and based on materiality level.

   vii.         In the SM’s opinion Herefordshire is in a very positive position being one of three that had their accounts signed off on time with no previous backlogs and compared to others in the region and nationally are considered to  ...  view the full minutes text for item 49