Agenda item

To receive a report by Sean Cremer, Corporate Director, Finance and Commercial.

The Corporate Director for Finance and Commercial introduced the report. Scope for this was Dorset Council and the Dorset Council pension fund. The report showed the Council was effectively hindered by the backstop arrangements and the maximum opinion in insurance is hampered by that happened a few years ago which was a national matter. Therefore, the opinion on the closing balance carried forward to the following year, but this would be the last year the backstop lingered in the accounts. Views from Grant Thornton would lead to a clean bill of health, and there were hundreds of pages of detail regarding findings and were continuing to identify improvements which were welcomed.

The Engagement Leader from Grant Thornton introduced the documents. The documents regarding Dorset Council and Dorset Pension fund were brought up to date. Appendix 2, recalled a verbal update was brought at the last meeting regarding an additional paper, and had been incorporated into the final report so there was nothing new and was just a final complete document. The pension fund was on its last year of unwinding.

In appendix 4 and 6 was the letter of representation which was signed by senior management to make sure that all information had been disclosed to the auditor and covers areas such as fraud.

Dorset Council’s audit, appendix 1, was presented at the last meeting but there were 3 key areas highlighted to be finalised. The first was around final work regarding concluding council leases. Big changes last year in authorities leasing standards which effectively brought on additional leases not previously held by the council.  Valuation of the Council’s property assets had been taken to an external professional valuer and expect to take very different assumptions which can lead to sizable swings in the balance but has been given additional levels of scrutiny with additional expertise being used. In relation to the health and safety investigation there was a meeting with the police to gain a helpful update allowing additional work to be completed. Was pleased to say no audit tests revealed there were no other issues, and all three areas have been concluded. Disclaimer opinions still retain on the council. The council valued property every 5 years so was not subject to the value of the current year so will take a while before some property comes back around for valuation. There would be discussion with colleagues on what the period of recovery will look like to get there as soon as possible.

Decision: The Committee agreed and noted the recommendations set out in the report.  

Reasons for Decision:  

In accordance with the national backstop deadline of 27 February 2026 for the completion of the 2024/25 audit, the Committee was asked to approve the recommendations which provided a disclaimer of opinion on the financial statements for 2024/25.