Agenda item

5.1

The Committee received a report of the External Auditors, Ernst and Young (EY).

5.2

The Head of Strategic Finance explained the report concluded the audit for the year 2020/21.  The report summarised the position on the audit opinion which was that there was a clear opinion.

5.3

Janet Dawson, EY, referred to the value for money commentary section of the report. It was mentioned that there were 3 main areas in which EY had explored throughout the year.

• Financial Sustainability
• Governance
• Improving economy, efficiency and effectiveness

5.4

EY were satisfied the Council had sufficient arrangements in place to manage how decisions were made around these developments.

5.5

Members of the Committee asked questions and the key points to note were: -

5.6

The Acting Chief Executive, Eugene Walker, explained the Councils finances had become more pressured over the years. The Councils budgetary position was announced early last year in which the Council had accepted their position and worked alongside external auditors so the situation could be monitored appropriately. It was added that reports around the Council’s budgetary position would be brought to future the Audit and Standards Committees.

5.7

A Member of the Committee welcomed regeneration in the city, although added concerns that since the Council had agreed to sign a lease for properties in the West Bar development, there could potentially be liable to pay rent for those properties.

5.8

A Member of the Committee was happy to see an error of £2.4m was picked up by the external auditors.

5.9

 EY were asked what they thought were the Council’s main risks were for the next 12 months. EY believed the main financial challenges would be around social care expenditure. EY added that they will continue to monitor how the Council intended to save money.

5.10

EY confirmed there was transactions with two previously undisclosed parties. These related partied were not disclosed by Members on their annual declarations.

5.11

The Head of Strategic Finance explained the importance of acting on errors found by EY, which were highlighted in their report. He added the Council were already working with EY to improve on these aspects for the following years. There was also a formal response to recommendations report on the work programme for June 2022.

5.12

RESOLVED: that (1) the Committee noted the report (2) the Group Whips ensure their party Members had their declaration of interest forms up to date and correct (3) the importance of filling in declaration forms correctly should be expressed in new Member training with examples provided; and (4) the Monitoring Officer was asked to send out a further reminder to members to review declarations, 6 months after the elections.