Agenda item

This report presents the Council’s External Auditor’s Annual Report on value for money as part of the 2022 - 23 audit of the year end accounts. It also sets out the key recommendations made within the Annual Report.

Members are asked to note that a representative of the Council’s External Auditor’s (Grant Thornton) will be present at the meeting to respond to any issues raised.

Council RESOLVED to note the external auditor’s annual report on Value for Money as part of the 2022-23 audit of the year end accounts.

Eligible for call-in: No

In accordance with the change in the order of business agreed at the start of the meeting, the Mayor then invited Sophia Brown (Grant Thornton) as the Council’s External Auditor Partner to introduce the External Audit 2022-23 Annual Report on Value for Money (VFM).

In introducing the report, Sophia Brown summarised the approach towards the VFM audit and drew Members attention to the positive nature of the process and key findings detailed within the Annual Report.  As part of the auditor’s work, members were advised that no significant weaknesses had been identified in terms of the Council’s VFM arrangements.  Whilst a small number of improvement recommendations had been identified, it was pointed out these had been designed to enhance existing processes rather than in response to any weaknesses identified.  In commending the report to Council, she once again highlighted the positive outcome of the audit, Council’s overall financial sustainability and achievement in being able to complete closure of the 2022-23 Statement of Accounts, with thanks expressed to all those involved in supporting the process.

The Mayor then invited Councillor Tatler, as Deputy Leader & Cabinet Member for Finance, Resources & Reform, to respond to the Annual report on behalf of the Council.  In welcoming the report, she felt it important to recognise the positive nature of the independent audit opinion and findings identified in relation to the Council’s VFM arrangements, particularly given the Council’s challenging budgetary position and significant issues faced in this respect by other local authorities. 

Whilst recognising the difficult nature of decisions which had needed to be taken in order to deliver a balanced budget and maintain the Council’s financial sustainability, all those involved were thanked for their efforts to ensure the Council was able to continue operating on the basis of a prudent, financially sustainable and resilient approach towards management of its finances.  In highlighting the fact that no areas of significant weakness had been identified within the audit findings Councillor Tatler advised she was also pleased to note that the audit had found the Council’s approach towards financial planning both over the short and longer term to be based on sound judgement with a good track record in setting and achieving balanced budgets and identifying and responding to financial risks.  Confirmation was also provided that the improvement recommendations identified had all been accepted with management responses provided, as detailed within the report. 

Highlighting the value of continued collaboration given the ongoing financial and economic uncertainty, Councillor Tatler ended by thanking Sophia Brown and her team along with the Council’s finance officers, Councillor Chan and the Audit & Standards Advisory Committee for the diligent work undertaken on the audit.

The Mayor then invited contributions from other members, with the following comments received.

In response to the outline of the audit process provided, Councillor Lorber sought further detail as to whether this had included any review of arrangements for the management and recovery of debt owed to the Council, management of the Council’s commercial property portfolio (given specific concerns highlighted relating to rental yield and collection) and progress on delivery of the Altamira Morland Gardens housing scheme.  In responding on the issues raised Sophia Brown advised that the scope of the audit had been focussed on the Council’s overall arrangements for delivering Value for Money as prescribed within the National Audit Office Code of Audit Practice rather than on the delivery of specific schemes or projects.  Whilst again not focussed on specific schemes, an assurance was provided that arrangements for the management of debt and borrowing had been reviewed as part of the audit of the Council’s Financial Statements with management of the Council’s Property Portfolio and capital projects due to be considered as part of the audit arrangements for 2023-24.

As no other members indicated they wished to speak the Mayor once again thanked Sophia Brown for her attendance and then put the recommendations in the report to the vote which were declared CARRIED.

It was therefore RESOLVED to note the External Auditor’s Annual Report on Value for Money as part of the 2022-23 audit of the year end accounts.