The Accounts and Audit Committee of Ribble Valley Council met on Wednesday, 26 June 2024, to discuss several key financial and audit-related matters. The committee endorsed the accounting policies for the 2023/24 financial year, approved the Strategic Internal Audit Plan for 2024/25 to 2026/27, and noted an increase in audit fees for the 2022/23 financial year. Progress reports on internal and external audits were also presented, along with an update on the Strategic Risk Register.

Review of Accounting Policies 2023/24

The Director of Resources and Deputy Chief Executive presented a report seeking endorsement of the Accounting Policies to be used in producing the Financial Statements for the 2023/24 financial year. It was noted that no major changes to the CIPFA Code of Practice on Local Authority Accounting in the United Kingdom (The Code) had been identified, and therefore, no material changes to the policies had been made. The committee resolved to endorse the use of the policies shown at Annex 1 to the report, subject to any further changes identified during the preparation of the financial statements.

Strategic Internal Audit Plan 2024/25

The Director of Resources and Deputy Chief Executive submitted a report presenting the 3-year Strategic Internal Audit Plan for 2024/25 to 2026/27 for consideration and approval. The plan defined the scope and rationale behind each of the individual assignments and the resources required to deliver it. It provided assurance regarding the effectiveness of controls and the management of risk, focusing on the Council’s strategic risk register and the new objectives in achieving the Corporate Plan (2023/27). The committee approved the Strategic Internal Audit Plan, subject to minor amendments discussed during the meeting.

Audit Fee Variation in Respect of 2022/23

The Director of Resources and Deputy Chief Executive informed the committee of an audit fee variation notification received from the Public Sector Audit Appointments (PSAA) for the 2022/23 financial year. The previously notified fees were £55,384, and the revised total fees were now £78,384. The additional £23,000 had already been included in the Revised Estimate for the 2023/24 financial year and were budgeted for. It was noted that the fees for 2022/23 fell within the agreement previously negotiated by the PSAA in 2017, reflecting the increased amount of work due to new auditing standards.

Internal Audit Progress Report 2023/24

The Director of Resources and Deputy Chief Executive provided an update on the progress made in delivering the 2023/24 Internal Audit Plan. Fourteen audits were currently in progress, with one referral for investigation remaining open. The progress and coverage on the audit plan were considered good, enabling a sound draft audit opinion to be formed in May 2024.

External Audit Progress Report

Grant Thornton presented their audit progress report. The External Audit Manager provided a verbal overview, highlighting materiality, significant risks, audit responsibilities, IT audit strategy, and Value for Money (VFM) work. Initial planning work was ongoing for the 2023/24 audit, and the committee was informed of the audit timetable for the forthcoming year.

Strategic Risk Register

The Director of Resources submitted an information report detailing the strategic risk management activity that had taken place between November 2023 and March 2024. The Strategic Risk Register contained sixteen open risks as of March 2024, affecting the delivery of the Corporate Strategy. Members noted the risk management activity that had taken place.