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Agenda item

External Auditors Annual Report 2021/22

Purpose

To receive a verbal update on the External Auditor’s Annual Report on Cotswold District Council 2021/22.

 

Reccomendation

To note the update.

Minutes:

The Chair invited Pete Barber as the External Auditor from Grant Thornton to introduce the report.

 

It was outlined how various factors had impacted all councils such as the inflationary increases. It was noted how financial sustainability was crucial for the council when it operates in an uncertain environment.

 

It was also noted how the governance arrangements are also considered by Grant Thornton. This examined how decisions are made in the Council and any risks are managed.

 

The Committee noted in Appendix C how the different types of recommendations can arise from Value for Money work.

 

It was highlighted how statutory recommendations issued to other councils due to concerns over service delivery did not apply to this Council.

 

It was noted that the Council does have arrangements to ensure Value For Money and there were no key recommendations noted for this.

 

It was noted that 2021/22 was a year where the Council did deliver against its targets, but that this was a year that had government grants which assisted.

 

The withdrawal of the Recovery Investment Strategy in 2022 was mentioned as a good governance decision in light of the worsening financial situation. The establishment of the Cabinet Transformation Working Group was also key to ensuring financial sustainability. However further officer and member challenge was needed to maintain financial sustainability.

 

In regards to governance, the capacity of the financial team was mentioned as a concern in the report. It was noted that in 2021/22, the team was under pressure to deliver the financial audits.

 

The Peer Review exercise in 2022 was crucial as a way of providing a direction for oversight of areas of improvement. It was highlighted that communication with Publica and other stakeholders was important to build upon this work.

 

The Committee asked about the Code of Conduct between Publica staff and those retained staff by the Council and any differences. The Deputy Chief Executive highlighted that there were some minor differences but there was a recommendation that the Code of Conduct needed to be updated for retained staff.

 

Councillor Jenkinson as an observer member asked about the term Value for Money and how it was used, and the extent to which information flows through the organisation to manage risk. Pete Barber said that the Value for Money definition is outlined by the Audit Office’s guidance. In terms of risk and performance management, it was noted that Grant Thornton’s report examines how the Council manages risks through the information to decision makers.

 

It was noted that some of the actions were completed, but that some of them like the workforce strategy were perhaps a bit more difficult to deliver. It was asked if there was a timeline for completion. The Deputy Chief Executive noted the AGRESSO Business World recommendation is in regards to optimising the system so that the Council’s data and Publica’s data could be more streamlined. On workforce planning, Publica was developing a workforce strategy to pick up succession planning and future needs.

 

The Deputy Leader and Cabinet Member for Finance commented that expectation is that retained officers have an action plan to follow-through with Publica. On the report’s recommendations around financial sustainability, it was noted that resourcing for the finance team was being looked at. The Deputy Leader also highlighted that the Cabinet Transformation Working Group was focussed on the 2023/24 budget and delivering the savings against the projections. 

 

It was also noted by the Deputy Leader that the immediate focus was around the financial sustainability of the Council, and delivering the savings required.

 

Pete Barber noted an update that all areas bar one have been concluded and that an update on trianevaultation had been undertaken.

 

It was estimated that the 21/22 accounts could be signed in the next 2 weeks.

 

The Deputy Chief Executive noted that the circulation of the adjustments to the 2021/22 statement would be published online. It was also noted that there was a delegation from April’s meeting to the Deputy Chief Executive and the Chair to approve the final accounts for 2021/22. This would then enable work to commence on the 2022/23 accounts.

 

The Committee re-confirmed the delegated authority given at April’s meeting.

 

RESOLVED: That the Committee note the report and confirm receipt of the pension liabilities update circulated within the meeting.

 

Supporting documents:

 

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