The Audit and Standards Committee met to discuss the external auditor's plans for the council and pension fund, the annual governance statement, and the committee's annual report. The committee endorsed the external audit plans for both the council and the pension fund, as well as the draft governance statement, and approved the committee's annual report for submission to the council.

External Auditor's Report – Warwickshire County Council Financial Year 2024/25 Audit Plan

Grant Thornton, the external auditor, presented their audit plan for the financial year, with Aftar Sohal, from Grant Thornton, clarifying that they would give an audit opinion at the end of the year, which would either be qualified or unqualified. Hark Vaid, also from Grant Thornton, outlined the significant risks identified, including management override of controls, valuation of the pension fund liability, and valuation of land and buildings. The audit plan also addressed the adoption of a new accounting standard, IFRS 16¹, concerning leases and right-of-use assets, and senior officer remuneration disclosures. The audit fee was a point of discussion, with Andrew Harper, Head of Strategic Finance, noting the proposed fee for the audit was £312,000, which included an additional cost for the independent valuation expert. The scale fee itself is £306,000. Aftar Sohal clarified that the fees are set by Public Sector Audit Appointments (PSAA).

External Audit Plan for Warwickshire Pension Fund 2024/25 Accounts

Grant Thornton presented the external audit plan for the Warwickshire Pension Fund. Aftar Sohal highlighted that the audit plan was similar to the county council's, but with a specific focus on the valuation of level three investments². Chris Norton, Head of Investments, Treasury and Audit, explained the different levels of investments, with level three being the most difficult to value, including private equity, infrastructure, private debt and property. Councillor Edward Harris asked about the fees for the pension fund audit. Aftar Sohal confirmed that the audit fee is established by the Public Sector Auditors, and they would only move from that fee if they thought something had happened or was different.

Annual Governance Statement

Nick Vine, Head of Legal and Governance, presented the Annual Governance Statement (AGS), explaining that the council is required to review the effectiveness of its internal control systems annually and prepare an AGS. The statement was drafted in accordance with the Chartered Institute of Public Finance and Accountancy (CIPFA) and Solicitors Local Government (SOLIS) framework.

Councillor Richard Dickson raised a question about infrastructure project management, given that the council has a major infrastructure project that is significantly over budget. Nick Vine responded that this was captured in the forward plan in terms of building on the capital financial management framework project.

Councillor Harris raised concerns about health and safety governance, counter-fraud measures, and information security governance. The Chair confirmed that these would be taken away and reflected on as part of the engagement piece that the council does after the meeting with the public. Geraint Stoneman confirmed that a risk appetite refresh would be brought back to the committee in November.

Audit and Standards Committee Annual Report 2024/25

Councillor Mark Stevens presented the Audit and Standards Committee Annual Report 2024/25, acknowledging the work of the previous chair, John Bridgman, and all the committee members. Councillor Robert Zara paid tribute to the excellent work the committee's officers had done, naming John Cole, Senior Democratic Services Officer, and Amy, who serviced the committee in earlier periods.

Work Programme and Future Meeting Dates

The committee reviewed the work programme and future meeting dates, with the next meeting scheduled for July. The Chair noted that the September meeting would be a training session and encouraged members to suggest specific topics.

Other Business

Councillor Harris raised a question about the timeline for evaluation of the auditing. Aftar Sohal clarified that the contract is based by public sector audit appointment and runs until 2027 or 2028, at which point another procurement exercise would be done.