42.1          Attention was drawn to Grant Thornton’s progress report, circulated at Pages No. 12-26, which set out the progress that had been made in relation to the Audit Plan, together with any emerging national issues and developments that might be relevant to the Borough Council.  Members were asked to consider the report.

42.2           Members were advised that the interim accounts audit had been undertaken in February 2016 and an Audit Plan had now been produced which would be considered under the next Agenda item.  The final accounts audit 2015/16 was still planned for completion in August 2016 and Grant Thornton was required to provide an opinion by 30 September 2016.  It was noted that, in the coming years the deadline for submission would be brought forward and the Engagement Lead advised that, for 2017/18, the accounts would need to be audited by the end of July.  A Member noted that the draft financial statement and Annual Governance Statement were expected by 30 June 2016, however, the Audit Committee was due to meet on 22 June 2016.  He was informed that, previously, the accounts had to be brought to the Committee by the end of June to approve the draft but the rules had been changed a few years earlier; the accounts were now published by the end of June but they were not taken to the Committee until September when they were approved and signed.  In response to a query as to how that might change going forward, Members were advised that the deadline for the Finance Team would be the end of May which meant that in 2018 there would only be a one month period to complete the accounts as opposed to three.

42.3           The Audit Manager for Grant Thornton went on to advise that the National Audit Office was now responsible for issuing value for money guidance and the criteria had changed so that external auditors were now required to assess the risks applicable to the Council rather than a suite of risks.  Work was ongoing with various partners in relation to financial stability and resources within the Council and a lot of work had been conducted with the Finance Team in this regard.

42.4           Members were informed that a number of articles had been produced on issues which the external auditors wished to bring to the Committee’s attention.  The first one was relatively new and related to Grant Thornton’s ongoing review of local government governance.  There was also a report on “CFO insights”, an online analysis tool that gave access to insight on the financial performance, socio-economic context and service outcomes of every local authority in England, Scotland and Wales.  Page No. 22 related to public right of inspection of the accounts which had changed for 2015/16.  Previously there had been a requirement to advertise in the newspaper for a certain number of days but the accounts must now be published on the Council’s website for inspection.  The 30 working day period for the exercise of public rights had to include the first 10 working days of July and therefore local authorities would not be able to approve their audited accounts or publish before 15 July 2016.  The other two reports, set out at Pages No. 23 and 24, related to fair value measurement, which was a major accounting change this year but one which was not anticipated to affect Tewkesbury Borough Council due to the make-up of its asset base, and unlodged non-domestic rate appeals which could now be backdated to 1 April 2015.  A Member questioned what the impact of this would be and the Finance Manager indicated that it was unknown as local authorities would need to estimate a provision for unlodged appeals; ideally a contingency would be put in place but this had not been included in the accounts for 2015/16 as there would be no financial impact for that year.  The Member queried whether money would be allocated for that and he was advised that earmarked reserves were set aside ready for next year but they may need to be increased to account for this change.  A Member questioned if there was a trend for more business rate appeals and the Revenues and Benefits Group Manager explained that they were fairly constant; rating agents and very large companies were particularly keen to submit appeals due to the success of the Virgin revaluation.  Officers anticipated that the number of appeals would reduce as there had been a period of adjustment when rents had not been as high as before but this was pure speculation and it was a situation which needed to be closely monitored.

42.5           It was

RESOLVED          That the Grant Thornton progress report be NOTED.