Agenda item

AG.34/22             

The Committee considered a paper from Grant Thornton that provided a progress update on delivering their responsibilities as the Council’s External Auditors.

In discussion, the overriding focus of the debate was on the delay to the Financial Statements Audit for 2022/23.  In particular, the Committee noted that Grant Thornton representatives had informed the Council that that the Audit fieldwork would be delayed due to their audit resourcing shortages.  As a result, the audit opinion would be delivered after the September 2023 publication date.

Whilst appreciating the recruitment challenges, Members expressed their serious concerns over the delay and additional recommendations were therefore PROPOSED and SECONDED that sought to reflect their disappointment.  These additional recommendations read as follows:

 2.    that serious concerns be expressed about Grant Thornton’s ability to deliver the promised external audit service in a timely fashion and in particular to provide audited accounts before the national target date for audited accounts of the end of September 2023.Their continued staffing problems should not be used as an excuse for less than satisfactory service standards.

3.     that these delays will cause SHDC considerable additional work and are likely to mean that we will suffer adverse reputational risk as our Accounts will not be audited by the target date of September 2023.

4.     that at the next meeting Grant Thornton be asked to present a detailed plan, including time scales, showing what actions they propose to take to restore an acceptable level of service and to address their shortage of experienced audit staff.

In the consequent debate, reference was made to:

-       the negative reputational impact on the Council.  In addition, the delay was considered to be particularly unfair on Council officers;

-       Grant Thornton representatives being unable to confirm that there would not be any further delays;

-       the situation being particularly galling given the substantial increase in Audit fees that the Council was now required to pay;

-       the wish of Members to see a detailed Action Plan from Grant Thornton at the next Audit & Governance Committee meeting;

-       the amount of required fieldwork for local authority audits was felt to be wholly disproportionate.

It was then:

                         RESOLVED

1.      That the contents of the Grant Thornton Audit Progress Report and Sector Update be noted.

2.     That serious concerns be expressed about Grant Thornton’s ability to deliver the promised external audit service in a timely fashion and in particular to provide audited accounts before the national target date for audited accounts of the end of September 2023.  Their continued staffing problems should not be used as an excuse for less than satisfactory service standards.

3.     That these delays will cause SHDC considerable additional work and are likely to mean that we will suffer adverse reputational risk as our Accounts will not be audited by the target date of September 2023.

4.     That, at the next meeting, Grant Thornton be asked to present a detailed plan, including time scales, showing what actions they propose to take to restore an acceptable level of service and to address their shortage of experienced audit staff.