Issue - meetings

To be informed and assured as to the progress against the Action Plan and responsesto the 2023-24 External Auditor’sAudit Findings Report.

The Interim Chief Accountant presented the progress against the Action Plan addressing the Audit Findings Report 2023-24 recommendations. The Action Plan aimed to improve governance, risk, and accounting control processes. Significant progress had been made, with most actions completed by the target date. Some key developments included the conclusion of the finance partnership with Mole Valley, with Ola Owolabi as the new interim Chief Accountant/Deputy Chief Finance Officer now in post. Regular dialogue with Grant Thornton had been established on a fortnightly basis to review progress. The Committee was asked to note the progress updates and continue receiving regular updates at future meetings to ensure ongoing oversight and improvement in financial reporting and governance.

The Committee inquired about International Financial Reporting Standard (IFRS) 16 issues referenced in the Action Plan. Ola explained that the Council had been advised to reverse its work on IFRS 16 for 2023-24 and undertake a detailed review in 2024-25, aligning with CIPFA code expectations. This involved identifying all leases where the Council was a lessee, lessor, or intermediate lessor, and gathering detailed information for each lease. The Council was expected to implement IFRS 16 in 2024-25, in line with most public sector bodies. The Committee also asked

about the state of the fixed asset register. Ola mentioned the introduction of new CIPFA Fixed Asset Register software, to be implemented to reconcile to the Financial Statements. It was noted that the 2023-24 register needs to be updated before data migration. The Committee questioned the quality assurance measures for the migration process. Ola responded that the Finance team was working with the Assets team to ensure proper capture of assets.

The Committee resolved to agree they had been informed and assured as to the progress against the Action Plan and responses to the 2023-24 External Auditor’s Audit Findings Report.