Issue - meetings

The Council’s external auditors, Grant Thornton, had prepared their annual audit plan for 2020-21, which was attached to the report submitted to the Committee. The plan detailed the scope of the audit and the programme of work that Grant Thornton intended to carry out during 2020-21, the approach they would adopt and significant risks that they would review as part of the audit. 

Pages 25 and 26 of the audit plan detailed the fee that Grant Thornton would charge in respect of the external audit of the Council.  The scale fee for the core audit, which was published by Public Sector Audit Appointments (PSAA) Ltd of £44,300, had not changed since 2018-19. However, the Financial Reporting Council (FRC) had set out its expectation of improved financial reporting from organisations and the need for auditors to demonstrate increased scepticism and challenge and to undertake additional and more robust testing. 

Within the public sector, where the FRC had recently assumed responsibility for the inspection of local government audit, the regulator required that all audits achieve a 2A (few improvements needed) rating.  This had led to additional work being required.  The revised fee for 2020-21 would therefore be £80,300 for the core audit.  A further fee of £24,000 was estimated in respect of the audit of grant claims.

PSAA were responsible for appointing an auditor to principal local government and police bodies that had chosen to opt into its national auditor appointment arrangements.  At its meeting on 6 December 2016, the Council resolved to opt-in to the appointing person arrangements made by PSAA.  Grant Thornton UK LLP had been successful in winning a contract in the procurement process and were recommended by PSAA as the Council’s auditors for a period of 5 years from 2018-19.  This appointment was made under Regulation 13 of the Local Audit (Appointing Person) Regulations 2015, and was approved by the PSAA Board at its meeting on 14 December 2017 and by Council on 10 April 2018.

PSAA had recently consulted on their draft prospectus for public sector audit from April 2023.  As part of the exercise the Council would need to decide in the autumn if it wished to be part of the national procurement exercise or whether it wished to undertake its own procurement exercise and set up an independent auditor appointment panel.

In considering the audit plan, some concern was expressed regarding the increase in the audit fee.  In response to a request for an update on progress with the current audit of accounts, the Director of Resources reported that it was anticipated that the draft accounts would be published in September and the timescale for the completion of the audit would be discussed with Grant Thornton at that time.

Having considered the external audit plan, the Committee

RESOLVED:

That the external audit plan submitted by Grant Thornton, attached as Appendix 1 to the report submitted to the Committee, including the audit fee set out on page 25, be approved.

Reason:

To enable the Committee  ...  view the full minutes text for item 25