Issue - meetings

To receive and consider the Indicative External Audit Plans (including the Pension Fund) for the year ending 31 March 2025.

For the Committee to receive and consider the Indicative External Audit Plan (including Pension Fund) for the year ending 31 March 2025.

Sophia Brown (Key Audit Partner - Grant Thronton) introduced a report providing the Committee with an update on progress with completion of the initial planning for the 2024-25 audit of the Council’s financial statements and Brent Pension Fund. 

In presenting the indicative audit plan for the London Borough of Brent report the Committee noted:

• The key developments identified as impacting on the current audit approach which included the proposals for reform of the local audit system, the wider national context in relation to the economic, social and health challenges impacting on local government alongside the local context in relation to the financial position in Brent and impact arising from the new accounting standards and reporting developments including IFRS16.
• The backstop arrangements for the publication of audited financial statements for the year ended 31 March 2025 had been set as 27 February 2026.
• The scope of the audit process and outline of significant risks to be considered which had included management of override controls, valuation of land and buildings as well as council dwellings, IFRS16 leases implementation and risk of fraud in revenue and expenditure recognition.
• The planning financial statement materiality had been determined as £22.624m (PY £16.1m) for the Group and £22.524m (PY£16.1m) for the Council, which equated to approximately 2% of the prior year gross operating costs.  In addition, members were advised the External Auditors were required to report uncorrected omissions or misstatements other than those which were ‘clearly trivial’ to those charged with governance. Clearly trivial had been set at £1.131m (PY £0.830m) for the Group and £1.126m (PY £0.805m) for the Council and with a specific lower materiality of £20,000 per individual, for senior officer remuneration and termination benefits.
• At the time of preparing the report it was reported that Grant Thornton had not concluded the detailed VFM planning and risk assessment procedures with a  further update to be provided for the Committee on the outcome of the planning procedures, resulting risk assessment and planned responses to identified risks of significant weaknesses (including those relating to the Council’s financial resilience) at the next Audit & Standards Advisory Committee meeting in July 2025.  The Committee was advised this would also include consideration of the Council’s self-referral to the Regulator of Social Housing as a potential additional significant weakness under the VFM work.
• The update provided on progress against prior year audit recommendations including the management actions identified in response on which a final update would be included as part of the External Audit Annual Report due to be presented to the Committee in September 2025 as well as scope of the IT audit strategy.
• The initial outline of audit logistics and timescales as detailed on page 41 of the report with the initial planning and risk assessment audit visit having taken place in April 2025 and final visits scheduled from July to September 2025.

The Chair thanked Sophie Brown for the update prior to seeking comments from the Committee with the following issues highlighted:

• Further details were sought on  ...  view the full minutes text for item 13