To consider a report from Deloitte.
Minutes:
Members considered
the planning report for the year ending 31 March 2020 from Deloitte.
Ian Howse from Deloitte presented the report highlighting the
significant audit risks to members.
The Executive Director
– Corporate Development advised the committee that the 2018/19 Accounts for
Weymouth and Portland Borough Council, West Dorset District Council and North
Dorset District Council had now been signed off by the Chairman and himself. The delay had been due to the complexity of
the transition into the new Council, combined with the new External Auditor
needing time to get up to speed.
However, his team were already preparing for this year’s accounts.
One member
expressed concern regarding Risk 6 – Value for Money and felt it looked as if
there had been very little progress made.
He felt this could potentially be a reputational big risk and asked how
members could gauge improvement. Mr Howse, Deloitte
advised that his job was to look across the whole year with the aim to bring
back areas where progress has been made and where there are still areas of
concern. His experience suggested this was more of a long-term project.
The Chairman
advised that he had spoken with SWAP officers earlier to ask them to attend
future committee meetings in order to give more assistance to members. He thought it might also be helpful for a
representative from Deloitte to attend meetings quarterly. Mr Howse advised
that there plans in place for an interim report in March following the interim
audit. He was happy to attend as and
when members wished but was unlikely to produce a draft report for July due to
time constraints. The Chairman welcomed those and felt whilst members still had
concerns about finances, this would go some way to address this.
In response to a
request for reassurance in terms of value for money in areas of expenditure in
respect of Children’s Services relating to one individual, Mr Howse advised that the work that auditors did on value for
money only looked at high level arrangements that the council had in place. The
way the system worked at the moment they would not be looking at benchmarking
at that level. The focus was on the numbers that were in the accounts which
didn’t go into that level of detail. Cllr Christopher asked for a letter to be
sent to the Chairman from Deloitte confirming these arrangements.
The Corporate
Director – Legal and Democratic Services advised members of the potential next
steps with regards to Risk 6 in that the value for money conclusion element of
the opinion on the accounts would be qualified. If there was a significant risk be
questioned whether it would be for the auditors to follow through or would it
be for the Overview and Scrutiny Committees to take forward as there was
mention of this in their terms of reference. The Vice-Chairman felt members
needed to be assured that they had the right methods in place and felt it was
for the Scrutiny Committees to take forward and for the Audit Committee to then
review.
One member felt it
would be appropriate for the People Scrutiny Committee to look at the Blueprint
for Change programme and for Audit to then see how the project had gone and if
there had been any lessons learned.
In respect of the
Deloitte approach to materiality the Chairman asked where the 1.7% had come
from. Mr Howse
advised that the range was usually between one and two per cent, it was purely
a judgement factor and would be reassessed throughout the audit.
Decisions
1. That Deloitte
write to the Chairman confirming the level of detail in the accounts regarding
the Value for Money risk.
2. That Overview
and Scrutiny Committees take forward the detail on the Value for Money risk.
3. That a report on
the Blueprint for Change Programme be added to the Forward Plan.
4. The Clerk to send meeting dates to Deloitte for them to establish when they will report back to members.
Supporting documents: