The Audit Committee received Telford & Wrekin Council's draft statement of accounts for 2022/23 and heard a report from the authority's external auditors, Grant Thornton. The committee approved the statement of accounts and noted the findings of the external auditors.

Draft Statement of Accounts 2022/23

The committee received a report on the draft statement of accounts for 2022/23. The statement had been certified by the Chief Financial Officer in May 2023 and made available for public inspection.

The committee was told that the audit of the 2021/22 accounts had been delayed due to a number of factors, including a sector-wide technical matter relating to the reporting of infrastructure assets.

The proposed changes to the Accounts and Audit Regulations would require Category 1 authorities, like Telford & Wrekin Council, to publish audited accounts for financial years 2015/16 to 2022/23 by 30 September 2024.

The committee heard that Grant Thornton had now substantially completed the audit for the 2022/23 statement of accounts and that an unqualified audit opinion was expected well ahead of the proposed backstop deadline.

A number of changes to the accounts had been identified.

The changes did not affect the outturn position or General Fund Balance which remained as reported to Cabinet on 15 June 2023.

Some members raised the provision for single status and the impact on general reserves. The Finance Manager and Interim Director: Finance & Human Resources explained:

The Single Status Provision had been reclassified as a reserve due to there being no equal pay claims to date.

The committee voted unanimously to:

• approve the 2022/23 statement of accounts
• grant authority to the chair to sign the letter of representation
• grant delegated authority to the Interim Director: Finance & Human Resources to make any final changes required to the statement of accounts prior to publication

Audit Findings Report 2022/23

Grant Thornton presented their audit findings report on the 2022/23 audit and financial statements. Key findings included:

• the reclassification of the single-status provision
• the reclassification of investment properties
• other adjustments to the financial statements

A small review of one piece of outstanding evidence was required prior to the letter of representation being signed, which was expected to confirm an unmodified set of accounts.

The auditors reported that:

• work had taken place on significant risks such as overriding controls, the valuation of buildings and investment properties, the calculation of values, and fraudulent expenditure
• an action plan had been drawn up in relation to NNDR and Council Tax debtor and creditor balances
• three recommendations had been made that would enable the audit to be more efficient
• the council should review the assets in its ownership in relation to depreciation and any disposals of assets that had taken place

The meeting heard that:

• the letter of representation had been signed by the chair during the meeting
• recommendations were in progress in relation to the MRP and updated regulations, which were due to come into force from 2024/25.

The auditors also reported on the council's arrangements for securing value for money in its use of resources.

At page 5 of the Annual Auditors Report and line with the Audit Office Code of Practice, it was considered that the Council had put in proper arrangements in relation to economy, efficiency and effectiveness and no significant improvements had been identified.

The report covered both the 2021/22 and 2022/23 audits, bringing the council's audit cycle fully up to date. The auditors highlighted a number of positives, including:

• good risk management in place, together with effective management
• a proactive and robust response to the CSE Inquiry
• appropriate steps being taken to embed changes into the council's ways of working
• sound financial stability, including sound financial planning and achieving savings targets and a balanced budget

Challenges for the 2024/25 budget would be the increase in Council Tax to support adult social care and Children’s Safeguarding services and pressures across the whole sector.

The chair thanked officers for their hard work and thanked Grant Thornton.