Issue - meetings

Committee is asked to consider the Audit progress report and sector updates from Grant Thornton, the Council’s external auditor.

The Committee received the Audit Progress Report and Sector Updates from the Council’s external auditors, Grant Thornton. The Chair welcomed Joanne Brown from Grant Thornton, attending remotely, to present the item.

Grant Thornton informed the Committee that the report provided an update on the conclusion of the 2024/25 external audit, noting that the Audit Findings Report and Value for Money (VfM) work had previously been shared with the Committee. The finance team had made the required amendments to the final financial statements, which were on the agenda for approval. Subject to the Committee’s consideration, Grant Thornton expected to sign the audit opinion before the statutory backstop date at the end of the week.

Grant Thornton also outlined the planning work underway for the 2025/26 audit, including early substantive testing focused on operating expenditure, fees and charges, investment income, payroll, and property, plant and equipment. Early testing would support a more efficient year?end process, with the aim of completing the audit by November 2026. It was confirmed that members of the finance team had attended Grant Thornton’s annual Local Government Accounts webinar.

Grant Thorton highlighted that the remainder of the report provided broader updates on sector developments.

Philip Briggs queried the disclaimer of opinion referenced in the audit report, particularly concerning uncertainty over closing balances for property, plant and equipment and investment property. He asked whether, as at 31 March 2025, there were any material asset or liability balances over which the auditors had continuing concerns. Grant Thornton referred to the RAG-status appendix within the Audit Findings Report, which summarised where assurance could and could not be obtained. She explained that the absence of cumulative opening balance assurance continued to present challenges, particularly for PPE valuations. She undertook to reconfirm the position after the meeting.

Philip Briggs also asked about the reference to internal audit programme deficiencies within the VfM commentary. Grant Thorton explained that this reflected the position reported in their Annual Auditor’s Report presented to the Committee in November, where several recommendations had been agreed. The audit opinion cross?referenced the same points for completeness.

Councillor Nichols asked what actions the Committee should take between now and the next external audit deliverables in November. Grant Thornton advised that they had been working with the finance team on lessons learned and on improving the quality and timeliness of audit evidence. Early testing was intended to relieve pressure during the main audit period. It was also noted that progress against the Council’s improvement plan including areas relevant to Value For Money would continue to be reviewed.

Councillor Nichols further asked how the Committee would have visibility of progress. Grant Thornton confirmed that the Audit Plan scheduled for the July meeting would provide an update on early testing, planning progress, and the status of recommendations.

RESOLVED that the Committee noted the Audit Progress Report and sector updates from Grant Thornton.