Tabled covering report published 17 April 2023.

The Director of Resources apologised for the lateness of the covering report (the auditor’s report was included in the original agenda pack) and drew attention to the two recommendations asking Members to note the external auditor’s Annual Report and to consider the six recommendations contained within it.

Darren Wells, Grant Thornton, introduced the Annual Audit Report 2021-22 which discharged their responsibility to provide commentary on the Council’s arrangements to secure economy, efficiency and effectiveness.  He said that it was the second year of a new style of reporting and was based on the requirement that the code of audit practice established by the National Audit Office (NAO).  He advised their role as auditors was to review the Council’s arrangements to ensure financial stability, good governance and to ensure the Council used it’s resources at its disposal in the most economic and most effective way possible.   They were also responsible for highlighting any significant weaknesses and any positive aspects of the Council’s arrangements.

Mr Wells reported that no significant weaknesses were identified.  Some areas of improvement had been identified and they proposed three recommendations in respect of improvement and three recommendations in respect of governance. 

Members were invited to ask questions and points raised included:

·         Did not support recommendation (4) Independent Members and considered the Committee should solely consist of elected Members;

·         could see the benefit of having Independent Members sit on the Audit Committee, especially if they had expert knowledge of audit; and

·         the audit experts were not members of the Committee but the officers employed and paid for by the Council so Independent Members did not need to be experts in audit.

There was some confusion around the external auditors recommendation (1) “reporting the achievement or not of savings into the annual budget”.  Mr Wells provided some background as to why they were requesting the recommendation, which they considered would ensure completeness and transparency.  He said it was meant as an enhancement to the Council’s existing budget monitoring report not an additional report. 

The Director of Resources reported that Independent Members on the Audit Committee was likely to become a mandatory requirement.

The Chair asked Members to consider the recommendations one by one.

Councillor Angela Harrison proposed that recommendation (1) from the external auditors not be accepted as it was already part of the Council’s budget monitoring report.  This was seconded by Councillor Tim Gibson.

Councillor Richard Palmer proposed that recommendation (2) from the external auditors be approved.  This was seconded by Councillor Angela Harrison.

Councillor Tim Gibson proposed that recommendation (3) from the external auditors be approved.  This was seconded by Councillor Angela Harrison.

Councillor Richard Palmer proposed that recommendation (4) from the external auditors be approved.  This was seconded by the Chair.  On being put to the vote the proposal was lost.

Councillor Richard Palmer proposed that recommendation (5) from the external auditors be approved.  This was seconded by Councillor Angela Harrison.

Councillor Denise Knights proposed that recommendation (6) from the external auditors be approved.  This was seconded by Councillor Tim Gibson.

Resolved:

(1)  That the external auditor’s Annual Report be noted.

(2)  That the managements responses to the auditors recommendations be noted and recommendations (2), (3), (5) and (6) of the external auditor’s Annual Report be agreed.

(3)  That recommendation (1) and (4) of the external auditor’s Annual Report be refused.