Agenda item

To receive a report by Ian Howse, Deloitte

The Executive Director Corporate Development introduced the report and set the scene. He explained that accounts were published and audited to ensure the transparency and accountability for public money and how it was spent on public services and to build up public confidence. In recent years there had been a growing back log of unaudited accounts. For example, for the financial year 2022/23 just 1% of Councils and national bodies published their audited accounts on time.  The Government had got together with key local audit partners to tackle the backlog and set statutory backlog dates of 13^th December for the publication of audited accounts for financial years 2022/23. There had also been Further backstops for the 2023-24 accounts which were later in the year. The Government plan was for auditors to focus on more updated accounts and to clear the backlog and bring the Committee up to date.

Ian Howse informed that the 2021/22 accounts both for the Council and the Pension Fund, would be issued with an unmodified opinion. The 2022/23 accounts of both the council and pension fund would be disclaimed due to insufficient time due to the backstop date. Those opinions would say that Deloitte were unable to give an opinion due to the lack of time to complete.  In terms of the 21/22 audit, the audit plan set out the significant risks which were completeness and accuracy of the accrued expenditure and the capitalisation of infrastructure assets under construction. There were complex assumptions made around property valuations and the accounting around those property valuations. Finally, the valuation of the pension scheme liability. Some misstatements had been identified in terms of capitalisation but nothing material and some misstatements over accruals. There were some issues coming out of the audit that stood uncorrected and he requested that the committee asked management to correct auditing standards. These were not material and if not corrected these would not impact on the opinion of the 2021/22 accounts. There was a significant adjustment in relation to Colefox school which was an academy school. There was one disclosure misstatement. 

Proposed by Cllr Suttle, seconded by Cllr Flower.

Decision:

1. The Committee noted the content of the Auditor’s ISA260 Reports

1.1 Dorset Council 2021/22

1.2Dorset Pension Fund 2021/22

2. The Committee agreed the content of the letters of management representation, and to delegate authority to the s151 Chief Financial Officer (in consultation with the Chair of the Audit and Governance Committee or the Chair of the Pension Fund Committee as appropriate) subject to any further changes as required by external auditors Deloitte LLP.

1.1 Dorset Council 2021/22

1.2 Dorset Pension Fund 2021/22

3. The Committee agreed the audited financial statements for the period ending 31 March 2022 for Dorset Council (including Dorset Pension Fund accounts), and to delegate authority to the s151 Chief Financial Officer (in consultation with the Chair of the Audit and Governance Committee or the Chair of the Pension Fund Committee as appropriate) to approve the accounts subject to any further changes as required by external auditors Deloitte LLP.

Reason for Decision

As part of the national backstop stop deadline of the 13th of December 2024 for the completion of the 2021/22 audit, the committee are asked to approve the recommendations which provide an unmodified opinion on the financial statements for 2021/22.