Agenda item

The Committee received an update on the 2020/21 Statement of Accounts; the audit backlog backstop date and its impact on the Council; the impact on future years audit and change of auditor if opinion with limited scope was issued; and a summary of audit progress covering 2020/21 to 2022/23. Mr Mark Stocks, Audit Partner, Grant Thornton, External Auditor was in attendance for this item. Mr David Skinner, Section 151 Officer introduced the item.

Key points raised during the update and in discussion included:

·       It was highlighted that the backlog of accounts was not exclusive to Buckinghamshire and was an issue nationally. The Government proposal was to implement a series a backlog dates whereby accounts should be concluded. The implication of this was that some disclaimers of opinion may be issued for a limited number of years. The plan for Buckinghamshire was to conclude the 2020/21 accounts by the end of December 2023, then dependant on what came through in legislation there could potentially be a disclaimer of opinion issued for the 2021/22 and 2022/23 accounts, following which it was hoped that the 2023/24 could be concluded around winter 2024. The 2020/21 accounts would be presented to the January meeting of this Committee for approval and sign off.

·       The Council continued to work cooperatively and engaged positively with the external auditor, meeting requests for information in a timely and efficient manner. The external auditor spoke highly of the Council’s preparedness and the efforts made to have reached a position where an unqualified opinion on the 2020/21 accounts was now achievable. The Committee was advised that whilst it was a challenging period for the finance team who were also undertaking the budget setting process for the next financial year, there was adequate resource in place to meet these challenges although there was susceptibility to illness and unexpected time off due to the relatively small size of the team.

·       The Committee heard that the finance team had accumulated knowledge of the legacy Councils and there was a more robust process in terms of the working papers. There were also more of the team involved in certain stages to avoid there being a single point of failure should someone leave the authority. From an external audit perspective, it had been evident that there was a great deal more preparation undertaken in terms of providing working papers and significant work had been completed on areas to get them to a reasonable level.

·       It was thought to be the correct course of action to aim to complete work on the 2020/21 accounts as it provided assurances over the opening position for Buckinghamshire Council. Members were informed that in ordinary circumstances a disclaimed opinion would reflect poorly on the Council as it would indicate Buckinghamshire had poor accounts and record keeping, however in this instance should it be required for 2021/22 and 2022/23 it would be due to timing and Government legislation. Communication to the public would be important to ensure the right message was shared. Should there be disclaimers of opinion, it would allow the 2023/24 accounts to be completed at an earlier time.

·       The Committee heard that one potential change in the future to be considered was the regulatory requirements put on local authorities and external auditors around the work required to make local authority accounts understandable and relevant for stakeholders and ease the resources required to deliver the accounts.  This would require changes to the National Audit Office Audit Code of Practice and CIPFA Code of Accounting.

RESOLVED:

That the update be noted.