Issue - meetings

REPORT OF DIRECTOR – KPMG

To receive the Audit Plan for 2024/25.

RESOLVED: That the Committee noted the External Audit Plan & Strategy 24/25.

Audio recording – 6 minutes 4 seconds

The Engagement Director – KPMG advised that there were two papers on the agenda from KPMG. The first report, the ‘External Audit Plan and Strategy 2024/25’, was being presented at this meeting as it now included the value for money risk assessment, which was not included in the draft version presented in June 2025.

The Public Sector Audit Manager – KPMG presented the report entitled ‘External Audit Plan and Strategy 2024/25’ and highlighted that:

·       The draft version of the report was bought to this Committee in June 2025 and there were limited changes.

·       The materialities outlined on page 18 of the report pack had not been revised, as the forecasted amounts were accurate to the actual year end performance. 

·       Four significant risks were outlined on page 20 of the report pack, which were valuation of land and buildings, valuation of investment property, valuation of post-retirement benefit obligations and management override of controls.

·       Following the mid-year General Ledger migration, an additional risk had been included to cover the risks associated with this move.

·       Further narrative relating to the audit risk of each of the identified areas was included within the report, and the assumptions made in reaching the significant risk rating.

·       The significant risk associated with the fraud risk from revenue recognition and expenditure recognition had been rebutted, as outlined on page 26 of the reports pack. The main reason was that the nature of the income was simplistic and provided limited area for manipulation.

·       An issue relating to this provision of high needs housing provision in Hitchin had been identified as a performance improvement observation, as outlined on page 43 of the report pack. However, a report was being taken to Cabinet in November 2025, which would seek decisions on this identified issue.

·       The Audit Timeline was included at Appendix B to the report, and KPMG were confident with there ability to meet the backstop deadline at the end of February.

In response to a question from Councillor Paul Ward, the Public Sector Audit Manager – KPMG responded that the observations laid out would be followed up in a future report to ensure completion.

Councillor Vijaiya Poopalasingham proposed and Councillor Matt Barnes seconded and, following a vote, it was:

RESOLVED: That the Committee noted the External Audit Plan & Strategy 24/25.