Issue - meetings

REPORT OF DIRECTOR – KPMG

To receive the Auditors Annual Report for 2024/25.

RESOLVED: That the Committee noted the External Audit Auditors Annual Report 24/25.

Audio recording – 13 minutes 26 seconds

The Engagement Director – KPMG presented the report entitled ‘External Audit - Auditors Annual Report 2024-25’ and highlighted that:

·       This report was mandatory as part of the Audit Code and was being presented to the Committee as a draft report, as the deadline required to present this was 30 November 2025.

·       The approach to value for money assessments had not changed and the detail of the areas assessed were outlined at page 63 of the reports pack. Where areas of potential  weakness were identified, further work is conducted to assess whether this would lead to an actual weakness.

·       Two risks of significant weaknesses were identified, one around ‘Governance’ and one around ‘Improving economy, efficiency and effectiveness’ but there was no actual significant weakness identified.

·       The ‘Governance’ risk, as outlined on page 70 of the reports pack, where the statutory reporting deadline for draft account publication was missed,  was identified as not being a significant risk, as the accounts were published in mid-July 2025, which was an was improvement on last year.

·       The ‘Improving economy, efficiency and effectiveness’ risk, as outlined on page 73 of the reports pack, was identified due to a requirement for appropriate staffing levels, and the relatively small Senior Management Team at the Council, as well as shortages in other areas. However, following discussions with Officers, it was clear this was being addressed by management as appropriate. It was therefore deemed that this was not an actual significant risk.

The following Members asked questions:

·       Councillor Paul Ward

·       Councillor Matt Barnes

In response to questions, the Director – Resources stated that there were no penalties applied or actual implications for the Council missing the accounts publication deadline and that KPMG were made aware at the time.

In response to questions, the Engagement Director – KPMG stated that:

·       The issue of late reporting of accounts in the 2023/24 financial year was highlighted in the report  last year, but it may not have been identified as a significant risk weakness after full assessment.

·       There was a sector wide backlog of audit work, and therefore the ‘Direction of Travel’ had a downward arrow to highlight the potential of this wider risk.

·       Since the mitigations around staffing were already being addressed by management, KPMG would not add any additional recommendations.

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

RESOLVED: That the Committee noted the External Audit Auditors Annual Report 24/25.