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Agenda item

External Audit Annual Report West Oxfordshire District Council 2021 2022

Purpose:

External Auditors Annual Report 2021/22.

 

Recommendation:

That the External Auditors Annual Report is noted.

Minutes:

Peter Barber and Jason Granger introduced themselves to the Committee and stated that they were in attendance on behalf of Grant Thornton (GT), public sector auditors. The main objectives were to give an independent audit opinion on the Council’s financial position and a value for money conclusion.

Mr Barber presented a summary of the External Auditors’ Annual Report for 2021/22.

 

Mr Barber confirmed there were three areas considered as part of the report:

  1. Finance sustainability, budget setting, monitoring, variances, delivery, planning for medium term and strategy;
  2. Governance, interested in how the Council makes decisions, oversees the process and the Audit and Governance Committee is key to the governance effective process;
  3. Economy, efficiency and effectiveness.

 

Mr Barber referred the Committee to Appendix C, Page 60. In the report there were no statutory recommendations, and no key recommendations, and therefore the Council was reassured of the appropriate processes in place, in the three areas listed. The only recommendations from GT were 14 improvements, and therefore the processes at the Council were effective, with just these recommended improvements.

Mr Barber concluded that the report was very detailed.

The Chair clarified to the Committee that the report referred to was in the supplementary report pack.

Mr Granger guided the Committee through highlights of the work undertaken. Mr Granger referred the Committee to pages of interest within the report that had recommendations already in place to enhance processes. Recommendations included:

·         Page 25, Financial Sustainability;

·         Page 35, Governance arrangement;

·         Page 48, Improvement in economy and effectiveness.

 

Mr Granger thanked the Chief Finance Officer and her team for the support given to GT during the audit.

The Chair invited the Committee to discuss the audit, which raised the following clarification points:

 

  1. There seemed to be an overlap with FMOS (Finance and Management Overview and Scrutiny Committee) and this Committee, what were other Councils practices;

 

Mr Granger referred to the Council’s constitution and that there were three Overview and Scrutiny Committees, but required further definition and terms of reference. GT would recommend that the Council conducts a self-assessment in line with CIPFA (Chartered Institute of Public Finance and Accountancy) practice statement.

 

  1. Page 21 Executive summary says risk identified, then no risk found;

 

Mr Granger explained that initially when looked at, they thought there could be a risk but after investigation the verdict was no risk found.

 

  1. In improvement recommendation seven, the Council seemed to disagree with the first part, but agree with the follow up;

 

The Chief Finance Officer explained that they could agree to disagree with findings. However the first part was in relation to budget holders having access to the system and in fact they did have access, however they didn’t seem to use that access. Therefore at the present time the Council disagreed that access needed to be improved.

 

  1. Recommendation 13, to talk to Publica to aligning management, which management was this, Publica, the Council or both;

 

The Chief Finance Officer explained it was WODC management.

 

Mr Granger referred the Committee to the Audit Opinion 2021/22 and explained that at the end of March 2023, GT had presented the Audit Findings Report to Committee, which had been delayed due to the Pension fund position. It was envisaged that the letter would not be available until September, so a report was unable to be cleared. The Chief Finance Officer announced that the Council had received confirmation from Oxfordshire County Council that the letter would not be available until November, and confirmed the delay was as a result of limited resources.

The Committee thanked GT, the Chief Finance Officer, the Chief Accountant, and the Finance Team for all their incredible hard work and support.

The Committee Resolved to:

  1. Note the Grant Thornton Audit Findings for WODC report.

 

Supporting documents:

 

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