Issue - meetings
External Auditors Annual report 2025/26
Meeting: 28/01/2025 - Audit and Governance Committee (Item 316)
316 External Auditors Annual report 2023/24 
PDF 540 KB
Purpose
To update the Committee on the findings of the financial statement and Value for Money (VFM) external audit of the 2023/24 financial year.
External Audit expect to sign the accounts on the w/c 3 February 2025 following the completion of a small number of outstanding points and after the committee have had the opportunity to review the findings of their audit work.
Recommendation
That the Audit and Governance Committee resolves to:
- Note the Audit Completion Report (Annex A) and revised 2023/24 Statement of Accounts (Annex C)
- Delegate authority to the Deputy Chief Executive and S151 Officer, in consultation with the Chair of the Audit and Governance Committee, to approve the 2023/24 Statement of Accounts upon receipt of advice for any outstanding issues from the External Auditor.
- Recommend that the Chair of the Audit and Governance Committee and Deputy Chief Executive and Section 151 Officer sign the Letter of Representation (Annex D)
Additional documents:
- Annex A_ CDC Audit Completion Report 2023-24 - FINAL, item 316
PDF 4 MB
- Annex C_STATEMENT OF ACCOUNTS 2023-2024_20.1.25, item 316
PDF 2 MB
- Annex D_CDC Letter of Representation 202324, item 316
PDF 61 KB
- Webcast for External Auditors Annual report 2023/24
Minutes:
The purpose of the item was to update the Committee on the findings of the financial statement and Value for Money (VFM) external audit of the 2023/24 financial year.
The External Auditor was expected to sign the accounts in the week commencing 3 February 2025, following the resolution of a few outstanding points. Signing would take place after the Committee had had the opportunity to review the findings of the audit work.
- The Deputy Chief Executive & Section 151 Officer explained to Councillors that there were two additional papers related to the item: the Bishop Fleming audit completion report with annexes which addressed the findings from the Council’s financial statements audit, including the updated annual statement of accounts for the financial year 2023-24.
- the Bishop Flemming auditor's annual report focused on the value-for-money conclusion.
It was emphasised that this was not the final version, as some changes were still required to reflect the Council’s budget position for 2024-25 and certain aspects of the Publica review narrative.
Alex Walling, Key Audit Partner from Bishop Fleming, presented the audit completion report, outlining key risks and compliance with auditing standards. This was Bishop Fleming’s first year auditing The Council’s local government accounts, and processes were still being refined. Despite delays in receiving working papers, the audit was largely smooth, with no significant issues identified.
In response to a question, it was confirmed that risks related to revenue and expenditure recognition were common, and local government-specific risks included property valuation, investment properties, and pension fund net liability. The audit was ongoing, with outstanding work noted on p.15 and amendments on p.23. Minor audit adjustments were mostly presentational, with one unadjusted misstatement of £90,000 related to the Gloucestershire pension fund, deemed immaterial.
The Deputy Chief Executive highlighted competing priorities affecting audit readiness. Efforts would be made to bring forward VFM work to avoid last-minute tasks. The audit opinion deadline was set for 28 February 2025, with the audit certificate to be delivered by the National Audit Office (NAO)
It was noted that some meeting papers were received late. The Deputy Chief Executive acknowledged this, citing draft reports received the prior week and unexpected delays. He apologised and committed to reviewing processes for timely document delivery.
The Committee questioned the pension fund undervaluation, which was linked to a wider Gloucestershire fund undervaluation of £3m. The 2022 valuation stood at 90% funded, with the next expected to show improvement.
The Committee questioned the additional audit cost of £2,500 plus VAT. The Deputy Chief Executive attributed this to Bishop Fleming redeploying resources due to delays. The auditor emphasised the importance of adhering to agreed deadlines. Submission deadlines were confirmed as 27 February 2026, 31 January 2027, and 30 November 2027 moving forward. The backlog of 1,000 plus public sector audits was decreasing, but recruitment challenges in external audit firms remained. The audit fee increased by 151% to £131,000 under the new PSAA contract.
Members of the Committee stressed the need for adequate finance team resources. The Deputy Chief Executive ... view the full minutes text for item 316