Agenda item

FSD23046

This report was presented to the Committee by the Head of Corporate Finance and Accounting. Following the conclusion of the 2019/20 accounts, the report provided the auditors reports and an update on the production of the draft accounts for the subsequent financial years.

It was noted that audit of the 2019/20 accounts had been completed. However the completion certificate could not be issued until the objections regarding the accounts for 2018/19 had been concluded.

The Head of Corporate Finance and Accounting explained that an experienced interim former Chief Accountant had been brought in to review and update the 2020/21 and 2021/22 accounts. In the meantime, staff were still working on the initial draft of the 2022/23 accounts. The report stated that the 2020/21 draft accounts would be published on the Council's website around mid-July, but this was now more likely to be the end of July.

The Head of Corporate Finance and Accounting said that going forward, there would be weekly meetings arranged with the external auditors. The Chairman said that Ernst & Young (E&Y) would be attending the next meeting, so the Committee could monitor progress. A Member asked what assurances could be provided that going forward there would not be further delays in the finalising of the Council’s accounts. The Head of Corporate Finance and Accounting responded and said that he was confident that the draft 2020/21 accounts would be completed by the end of July. However, he was not in a position to form an opinion concerning how long the auditing of future accounts would take. This was because the Council was reliant on Ernst & Young in this regard.

It was suggested that what was required was a mutually agreed action plan between the Council and E&Y, which would agree agenda items and timescales. This was something that had not yet been formalised. It was further suggested that the Council keep a record of delays. Consideration could be given to requesting a rotation of E&Y staff. The Head of Corporate Finance and Accounting said that there would now be a designated staff member who would be responsible for co-ordinating responses to E&Y.

It was recommended by an Independent Member that a report should be provided to the next meeting that would provide a clear line of sight concerning proposed actions and timescales for both parties. The Chairman wondered why the objections to the 2018/19 accounts were taking so long to deal with. He wondered if this was normal. An Independent Member asked if the question could be regarded as a ‘nuisance’ question? It was noted that while this matter was ongoing, the Council would be incurring increased costs and officer time. The Chairman stated that he (and the Vice Chairman) had spoken directly with the objector. The objector had submitted objections totalling 300 pages. 

The draft 2020/21 accounts had not yet been published; once they were, this would give the objector a further opportunity to submit new objections. A Member suggested that it may be possible (if there were further objections) to take the matter to court on the grounds that the objections were vexatious and that preparatory work should be undertaken in case this occurred. The Vice Chairman expressed the view that the objections were not vexatious. He felt that one of the reasons the situation may have been dragging on was that the objections were submitted 5/6 years ago and most of the LBB staff working for the relevant environment department at that time had now moved on.

The Chairman requested that when the External Audit Report was presented to the next meeting, it should suggest some options as to how the matter of the resolution of the objections to the accounts could be progressed and finalised. He said that this may also involve consultation with the Council’s Legal Department.

RESOLVED that the contents of the Report be noted.