Agenda item

Introduction and Audit Plan

Report of KPMG

Minutes:

9.1

The Committee considered a report of the Council’s new External Auditors, KPMG.

 

9.2

Tim Cutler (Partner, KPMG) introduced himself to the Committee. 

 

9.3

Matthew Moore (Senior Manager, KPMG) introduced himself to the Committee.

 

9.4

Tim Cutler explained that the report shared with the Committee was KPMG’s audit plan for the coming year. He mentioned that the plan was draft as they were yet to risk assess the Council’s VFM and they were yet to see the legislation relating to the backstop date for signing off the unaudited statement of accounts. Once these areas were concluded a report would be presented to the Audit and Standards Committee.   

 

Matthew Moore outlined the Council’s significant risks identified by KPMG and gave the Committee more details on each of the following:

 

  • Valuation of land and buildings.
  • Management override of controls.
  • Valuation of post retirement benefit obligations.
  • Completeness of non-pay expenditure.

 

He mentioned that there was one further risk identified which related to Ledger Migration.

 

9.5

Members of the Committee made comments and asked questions and the following responses were provided: -

 

9.6

Tim Cutler confirmed that KPMG had been working with the Council’s finance officers in order to ensure that the audit for the 2023/2024 Statements of Accounts started on time.

 

9.7

Tim Cutler confirmed that KPMG would use a 3-year period in order re-build assurance.

 

9.8

Hayley Clark confirmed that EY would carry out all the appropriate processes in order to handover the audit to KPMG.

 

9.9

Tim Cutler explained that auditing standards required auditors to put materiality relating to financial statements in a range between 0.5% and 3%. The figures for Sheffield City Council could be found on page 35 of the agenda.

 

9.10

Tim Cutler explained that KPMG had carried out various risk assessment processes when looking at Council assets although he mentioned that it will be at year end when they received those valuations and went through the challenge process.

 

9.11

Tim Cutler confirmed that KPMG would continue to work and understand the Council’s budgetary controls and monitoring before presenting their VFM risk assessment report at a later stage of the year.

 

9.12

RESOLVED: That the Audit and Standards Committee notes KPMG’s audit plan.

 

 

Supporting documents: