Agenda item

Report FSD24029

The Committee received a report providing the annual audit letter following conclusion of the audit of the 2019/20 Statement of Accounts, draft audit results for the 2020/21 Pension Fund audit and an update on the main Council audit for 2020/21 and subsequent years. Janet Dawson from EY, the Council’s external auditor, attended the meeting.

Ms Dawson explained that all the audit work for 2018/19 was done and consideration of the objections to the 2018/19 accounts was now nearly concluded; this would allow the certificate to be issued for 2019/20 and then EY would assist the Council to re-set towards the correct timetable. The 19/20 audit should follow within months, and the 22/23 audit was subject to a back-stop date of 30^th September 2024. She confirmed that the objector had no right of appeal as the objections were based on public interest rather than unlawfulness. The objections were detailed and substantial, amounting to around 70-80 pages of text, and EY’s work had been delayed until the previous auditor’s work was completed in 2022. The objections had to be worked through carefully, according to set processes. However, as the objections were essentially the same each year, future years should be dealt with more quickly.

A timetable for the 2023/24 audit cycle was set out on page 106 of the agenda pack; substantive work would be carried out over the summer and the process should be completed by the end of the calendar year. The Council’s Head of Corporate Finance and Accounting confirmed that the Government expected Councils to produce their draft accounts within two months

Ms Dawson confirmed that Audit fees were set by the Public Service Audit Authority (PSAA). A Member suggested that the cumulative costs of addressing the objector’s concerns should be drawn up. The Director of Finance confirmed that although the Council might view the objector as vexatious the auditor had to work through the objections. There were concerns about the audit requirements, some of which were more suited to the private sector, and the fees imposed on local authorities by the PSAA. The new value for money assessment was useful – the Director confirmed that there were no concerns for Bromley – but it was intended to identify those authorities struggling financially. The Chairman suggested that the Committee should have further discussion of fees in part 2. 

A Member asked about the Audit Differences commentary (page 65 of the agenda pack). Ms Dawson confirmed that the different benchmarking approaches of MFS and BNY Mellon were not material, and that the Mytime Active exit from the Pension Scheme did not mean that the Pension Scheme was better off, only that the year-end position had not been reversed out.

The Chairman thanked Ms Dawson for attending the meeting and for her work assisting the Council.

RESOLVED that

(1)  The 2019/20 Annual Audit Letter from EY (Appendix 1 to the report) be noted.

(2)  The draft 2020/21 Pension Fund Audit Results report from EY (Appendix 2 to the report) be noted.

(3)  The Audit Update report from EY (Appendix 3 to the report) be noted.