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This is what we want to do about it
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These are the next steps
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Continue to address the recommendations
·
Significantly improve the Annual Audit Report for
2024-25
·
Progress the Action Plans to provide the Committee with
reassurance as the
actions being undertaken and to enable oversight
of progress
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·
Continue to implement the agreed Action Plan
·
Review progress against the Action Plans at each meeting of
the Audit Committee
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Ensure that the Corporate Risk Register is updated to
reflect the agreed Action Plans
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1.1
This
report seeks to provide members of the Committee with progress
updates against the Action Plansto address the Annual Audit Report Key and
Improvements recommendations agreed by the Audit Committee in
February 2025.
1.2
The
External Auditors make recommendations to improve the governance,
risk and accounting control processes in place. It is important to
monitor the implementation of these recommendations that will
improve the financial reporting control environment and provide
assurance of delivery.
2.
Key issues
2.1
Local
authorities are required to have theiraccounts independently
audited annually by external auditors and to receive an annual
audit opinion on the effectiveness and efficiency of their
arrangements for securing Value for Money.
2.2
The
Action Plans cover all the recommendations made in the
Auditor’s report, and reflect the initial management
responses/action, a
responsible officer, along with target completion date.
2.3
Progress against target dates will continue to be monitored
and reported back to the future meetings of this Committee. A key
measure of progress will be the external audit reports for 2024-25,
and there has been significant progress made within expected target
date across the plan.
2.4
The
record of activityagainst these actions is attached as Appendix A.
Update reportson the progress of the remaining actions and the
financial reporting
improvement plan overall willbe provided to the future Audit
Committee meetings throughout the year.
3.
Options
analysis and proposal
3.1
Option
1 – Consider the
attached Actions Plan progress
updates and agree to continue to receive progress reports
at each Committee meeting throughout the year.
3.2
Option
2 – suggestamendments to the attached ActionPlan progress
updates and agree to continue to receive progress reports at future
Committee meetings.
3.3
Option
3 – do not accept the actionplans progress updates.
4.
Financial management
comments
4.1
The
Annual Audit Report has a significant focus on financial issues.
The Action Plans seek to address the recommendations
made.
5.
Risk management comments
5.1
The
Annual Audit Report identifies a number of key corporate risks. One
of the Key Recommendations relatesto reviewing the Corporate Risk
Register and aligning it to focus on the risks identified in the
report by the auditors. Officers have done an initial review to
identify how the Corporate Risk Register couldbe re-configured,
which has now been
addressed.
6.
Procurement comments
6.1
One of
the Key Recommendations in the AnnualAudit Report relatesto
Procurement and is addressed in the Action Plan.
7.
Legal comments
7.1
Pursuant to Section 151 of the Local Government Act 1972
the Council is under a general duty to make arrangements for the
properadministration of their financial affairs.
7.2
Section 3 of theLocal Audit and Accountability Act 2014
requires the Council to keep adequate accounting records and to
prepare a statement of accounts in respect of each financial year.
The Accounts and Audit Regulations 2015 contain various
requirements in relation to the Council’s statement of
accounts which the Council must comply with.
7.3
Audit
Committeeoversees the Council’s financial reporting
process,and more particularly it is within the Committee’s
remit to “Seek assurances that action is being taken on risk
related issues identified by auditors and inspectors”. This
report seeks to provide such assurances in relation to the matters
previously raised within the external auditor’s Annual Audit
Report.
8.
Otherconsiderations
8.1
The content of the Audit Findings Action Plan is
also contained within the overall Consolidated Action Plan
encompassing: Public Interest Report, CIPFA Capital Assurance Report, LGA Peer Review
follow up and the Grant Thornton Annual Audit Report for 2023-24
and Audit Findings 2023-34 and the Best Value Inspection report.
The Consolidated Action Plan is later on the Agenda of this
meeting.
8.2
Behind the Action Plan is a Gantt chart to visually show
the timing of anticipated actions.
9.
Equality and Diversity
9.1
Good
governance underpins ability to make decisions to address
appropriately. The Equality, Diversity & Inclusion (EDI)
policyis in place and a full strategy to be developed, However, all
projects should have undertaken an equality diversity and inclusion
impact assessment to ensure the project meets EDI requirements this
is monitored in the implementation of a project.
Sustainability/Climate Change Implications
9.2
Good
governance underpins ability to make decisionsto address the
challenges of sustainability and climate change.
10.
Timetable for implementation
10.1
The
Action Plan for the Annual Audit Report will continue to be
presented at every meeting of the Audit Committee.
11.
Contact
·
Terry
CollierChief Finance
Officer – t.collier@spelthorne.gov.uk
,
·
Daniel
Mouawad, Chief Executive -dcm.cex@spelthorne.gov.uk
·
Lee
O’Neil - Deputy Chief Executive
-l.o'neil@spelthorne.gov.uk
·
Linda
Heron – Monitoring Officer –
l.heron@spelthorne.gov.uk
·
Ola Owolabi , Deputy Chief Finance
Officer- O.Owolabi@spelthorne.gov.uk.
Please submit any material
questions to the Committee Chair and Officer Contact by two days in
advance of the meeting.
Backgroundpapers:
Annual Audit Report
2023-24
Appendices:
Appendix A
–
Progress update
regarding ActionPlan for Audit Findings Recommendations
Appendix B
– Summary of Key and
Improvement Recommendations contained within the 2023-24 Annual
Audit Report
Audit
Committee