Issue - meetings

This report details the response provided by the Council to the external auditors Enquiries of Management in order to meet expectations of the Financial Reporting Council (FRC).

Ben Ainsworth (Head of Finance) introduced a report providing the Audit & Standards Advisory Committee with the opportunity to review the responses provided by management to the External Auditors Enquiries of Management 2023-24, in order to comply with the expectations of the Financial Reporting Council (FRC).  Members were advised that the Enquiries of Management related to those charged with governance for both the Council and also Council’s Pension Fund with the management responses detailed in Appendix 1 (Brent Council Enquiries of Management) and Appendix 2 (Pensions Fund Enquiries of Management).

The Committee noted the following key points:

·             Confirmation was provided that the key issues identified as having a significant impact on the financial statements for 2023-24 had included the cost-of-living crisis, inflation, increase in demand for temporary accommodation, Dedicated Schools Grant High Needs Block deficit and pressures on the Housing Revenue Account.

·             The confirmation provided in relation to the ongoing appropriateness of the accounting policies adopted by the Council which, subject to a minor technical change identified in relation to the treatment of cash in transit, remained in accordance with the CIPFA Code of Practice.

·             The response had also identified no change in circumstances that would lead to any impairment in relation to non-current assets with all financial investments (covered under the accounting standards) also confirmed as being subject to an Expected Credit Loss review  under IFRS9.

·             The outcome of the fraud risk assessment, with no concerns or issues having been identified within the response in respect of fraud that may result in a material misstatement to the financial statements and assurance provided that all know material risks had been considered as part of the Council’s Internal Audit planning process and key financial system/control programme of work.  Reference was also included to the work of the Counter Fraud Team in seeking to prevent, detect and prosecute fraud and role of the Audit & Standards Advisory Committee in monitoring this activity.

·             The response also provided assurance in relation to the Council’s compliance with relevant laws and regulations highlighting the range of management controls in place to support the process including the recruitment and training of staff, robust policy and procedure framework and effective management oversight and control.  These controls were supported by the inclusion of legal and financial considerations in all reports for decision alongside the independent and objective assurance provided through the Internal Audit function and Internal Audit Plan, with activity focussed around the highest risk areas for the Council and the scope for each audit review including compliance with policy, plans, law and regulations.  In terms of the impact of any litigations and claims these were also subject to a detailed review process involving legal with any likely to impact on the financial statements disclosed as part of the Statement of Accounts as either provisions or contingent liabilities.

·             The outline included as part of the response in relation to the arrangements for disclosure of related party transactions and related procurement policy as well as the audit approach adopted in relation  ...  view the full minutes text for item 14