The Engagement Lead from Grant Thornton presented the External Audit - 2019/20 Audit Plan. He explained that this plan slightly differed from previous years and included Group accounts which incorporated accounts for Rubicon Leisure.
Members’ attention was drawn to page 9 of the report and Grant Thornton reported the 3 key risks that would require special audit consideration and explained what was meant by Materiality in regard to this audit process, the levels that had been set and rationale behind these figures. All uncorrected omissions or misstatements would be reported back to the Audit, Governance and Standards Committee.
It was noted on page 17 of the report that the significant Value for Money risk was Financial Sustainability and Grant Thornton explained that they would follow the progress of the two key areas identified in the report that would establish the Financial Sustainability of the Council.
The Committee advised that due to the significant pressures of undertaking the Audit this would not be completed prior to 31st July and the audit opinion would therefore be presented to the Committee in October. The Authority would have to publish the un-audited accounts by 31st July with a statement to explain the audit is ongoing. He reassured Members that there were no reputational consequences if the audit opinion was submitted at a later date.
Members questioned why there was more flexibility in the dates this year after moving the dates earlier in the previous year. Grant Thornton explained that due to the Redmond Review of Local Authority audits by The Chartered Institute of Public Finance and Accounting (CIPFA) it was found that the current timetable was unsustainable. The Redmond Review was also concerned with looking at how to make accounts of Local Authorities more simplified. Grant Thornton reassured Members that they were not easing off, that the deadlines were still important and that the Council had to send the statement of accounts by 31st May to the Auditors and publish by 31st July..
Grant Thornton explained that the proposed fees were higher than in previous years but remained lower than prior to the new tender being implemented.
RESOLVED that
the 2019/20 Audit Opinion Plan be noted and approved.