The Governance and Audit Committee of Knowsley Council met on Monday, 17 June 2024, to discuss various significant topics, including a presentation from STAR Procurement, an external audit plan from Grant Thornton, and updates on the Council's financial statements and internal audit quality assurance.

STAR Procurement Presentation

Lorraine Cox, Director of STAR Procurement, and Elizabeth McKenna, Assistant Director, provided an overview of STAR Procurement's role and achievements. STAR Procurement is a public sector shared service hosted by Trafford Council, serving six councils, including Knowsley. The presentation highlighted STAR's performance metrics, such as local spend and compliance rates, and discussed the upcoming implementation of the Procurement Act 2023, which will go live on 28 October 2024. The Act aims to introduce more flexible and creative procurement approaches, targeting local businesses and communities.

External Audit Plan by Grant Thornton

John Farrar from Grant Thornton presented the external audit plan for the 2023/24 financial year. The plan outlined significant risks, including management override of controls, valuation of land and buildings, and pension assets and liabilities. The audit will be conducted on a hybrid basis, combining remote work with onsite presence. Materiality for the audit was set at £8.8 million, with a clearly trivial threshold of £441,000. The audit is expected to be completed by December 2024, with a final report presented to the Committee in January 2025.

Financial Statements Update

Dan Barlow, Head of Finance, provided an update on the preparation of the Council's 2023/24 statement of accounts. Despite national capacity pressures, the Council aims to complete the accounts by the end of June 2024, ahead of the formal deadline of 31 May. The accounts will then be audited by Grant Thornton, with the final audit report expected in January 2025.

Internal Audit Quality Assurance and Improvement Programme

Karen Hogan, Chief Internal Auditor, presented the Internal Audit Quality Assurance and Improvement Programme for 2024/25. The programme aims to ensure the internal audit service is effective and adds value. Key tasks include reviewing new professional standards set by the International Internal Audit Standards Board, which will be effective from January 2025. The programme also includes actions to implement recommendations from the Chartered Institute of Public Finance and Accountancy (CIPFA) to improve the Council's assurance framework.

Other Discussions

• Audit Progress Report and Sector Update: John Farrar and Sophia Iqbal from Grant Thornton provided an audit progress report and sector update, highlighting key responsibilities and deliverables for 2023/24.
• Internal Audit Plan for 2024/25: The Committee approved the key themes for the Internal Audit Plan, which covers governance, risk management, and internal control systems.

The meeting concluded with the Committee noting the updates and reports presented.