Agenda item

To receive a report by Jackson Murray, Grant Thornton.

Jackson Murray from Grant Thornton, covered the highlights of the Audit findings report and concluded the work for this year’s audit. Grant Thornton intended to issue a backstop disclaimer opinion for 2023-24. The reason for this was the lack of opening balance assurance and it was accepted that auditors needed to rebuild assurance over a period of time likely 3 audit cycles. In terms of the audited position and the original draft financial statement, there was one adjustment posted to the comprehensive increment expenditure statement of around £2.5 million.  There was a PFI school that turned into an academy but retained on the Council’s balance sheet and that asset was removed and the £2.5 million related to depreciation and other charges. There was a significant number of works undertaken by both teams and he provided national context on the issue of audit opinions. He went through key items in the report and referenced pg 73 of the agenda pack regarding the materiality levels that was audited 2023-24, a materiality of £13.4 million and a triviality threshold of £700,000. This meant that any error corrected or not was included within the report and any error below that level is discussed by management and not required to be formally reported.

Simon Roach referenced pg 93 and raised the procurement issue, where the council self-identified procurement arrangement had no compliance with the current procedure rules and scheme of delegation and asked if the Committee was going to hear any further about that.

Cllr Suttle responded that at this time due to the ongoing activity, the Committee would not be able to hear anything about the procurement issue, but it was going to come to the Committee as a report in which there would be a full discussion.

Cllr Flower added that judgements being made should be based on data, facts and knowledge of the situation and the Council was not in a position to bring it to the Committee at this time.

Mr Roach requested that the Committee receives the conclusions of the investigation into the procurement issue urgently.

Cllr Clifford reinforced the commitment to bring the report to the Committee as soon as possible.

Decision: 1. The Committee noted the content of the Auditor’s ISA260 reports:

1.1 Dorset Council 2023/24

1.2 Dorset Pension Fund 2023/24

2. Noted the content of the Auditor’s opinions:

2.1 Dorset Council 2023/24

2.2 Dorset Pension Fund 2023/24 (financial statements)

2.3 Dorset Pension Fund 2023/24 (consistency with Pension Fund

Annual Report)

3. The Committee agreed the content of the letters of management representation, and 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 any further changes as required by external auditors Grant Thornton UK LLP

1.1 Dorset Council 2023/24

1.2 Dorset Pension Fund 2023/24

4. The Committee agreed the audited financial statements for the period ending 31 March 2024, and 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 Grant Thornton UK LLP.

Reason for Decision:

As part of the national backstop stop deadline of the 28th February 2025 for the completion of the 2023/24 audit, the committee are asked to approve the recommendations which provide a disclaimer of opinion on the financial statements for 2023/24.