Issue - meetings

The Committee received a report from the Council’s External Auditors on the External Audit Plans 2021/22.  It was agreed that the report, on a supplementary agenda, be considered on the grounds of urgency as the Plans had not been available when the main agenda was published.

It was noted that it was the fourth year of a five year contract.  The intention was for sign off of the Statement of Accounts by the Chair and Chief Executive subsequent to submission of the final report to the Committee in November.

The External Auditors went through the report in detail.  Particular mention was made of the Civic Centre accounting treatment which was now with the Mazars Technical audit team.  The fees for audit and other services for 2021/22 were indicative due to additional non-PSAA work and would be reported to a future meeting of the Committee.

In response to questions by Members, it was noted that the threshold of £10.5m for materiality was in accordance with the benchmark.  A materiality level of approximately 3% of gross revenue expenditure was fairly standard for Local Authorities.  Areas below that threshold would not be reported to GARMS unless it was material for reasons other than value.  In relation to risks regarding pension and property, the Auditors would review the work of the Council’s valuers and would use their own valuers to check any variances.

The Committee asked a number of questions with regard to the migration from SAP to D365.  Members were informed that the external auditors were working with the finance department as to the level of archiving and level of migration.  The Auditor’s IT team would also work with the Council’s IT section regarding the move to Sharepoint by the time SAP was decommissioned at the end of August.  A minimum of six years plus the current financial year of data must be held to meet HMRC requirements.  The Head of Strategic and Technical Finance confirmed that historical data would be archived and reviewed in due course.

With regard to the Pension Fund a Member asked whether experts reviewed the valuation of investments.  It was noted that the standard tool was for the Auditors to use internal experts.  The reports from fund managers were based on judgement and Mazars’ experts reviewed a selection with the expectation that they be similar.

RESOLVED:  That the External Audit Plans (Audit Strategy Memoranda) for the Council and the Pension Fund be noted.