Verbal Update from Ernst and Young (External Auditors).
Minutes:
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6.1 |
Janet Dawson informed Committee that she had taken over as the Lead Partner for Sheffield City Council at Ernst and Young and was currently reviewing files and trying to ensure a seamless transfer. It was hoped to report back to the Audit and Standards Committee in April.
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6.2 |
Hayley Clark (Ernst and Young) explained that a review process was currently underway to ensure that the new Lead Partner was comfortable with the previous audit. A small team would come back in March to close down queries on the audit. There was a need to check the financial statement and a query on fixed assets.
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6.3 |
It was hoped that all accounts work would be completed in time for the meeting on 15th April and it was hoped to bring the delegations to the meeting to be held on 18th March 2021.
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6.4 |
Councillor Mohammed Mahroof commented that external audit was under many pressures and there were concerns regarding fixed asset valuations for councils which were out of step.
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6.5 |
Dave Phillips noted that the auditors had spent a lot of time on fixed asset valuations, especially Heart of the City II. The project was being well managed and could be slowed down, or even paused and was a mix of office, retail, hospitality and housing.
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6.6 |
Councillor Simon Clement-Jones asked what the risks were for not getting the audit signed off by the deadline. Dave Phillips explained that the consequences were small and mainly reputational. In general, commercial lenders can worry about bodies with late audit opinions, but the Council was not currently expecting to borrowing from any such lenders. In addition, there were many other councils in the same situation. The biggest risk was in catching up next year.
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6.7 |
Janet Dawson agreed and explained that the external auditors would look at priority audits first, with continuity of staff. It was hoped to take a more digital approach if the Council and its systems allowed.
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6.8 |
The Chair suggested that a letter be sent to the LGA to ask them to make representation to the Government outlining the concerns regarding the current national situation with regard to external audit.
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6.9 |
RESOLVED:- That (1) the update be noted; and
(2) the Assistant Director of Finance draft a letter to the LGA outlining the concerns regarding the current national situation with regard to external audit. |