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Agenda item

Informing the Audit and Governance Risk Assessment 2021/22

To consider the external auditor’s report on informing the Audit and Governance risk assessment for Tewkesbury Borough Council 2021/22.

Minutes:

9.1            Attention was drawn to the external auditor’s report on Informing the Audit and Governance risk assessment for Tewkesbury Borough Council 2021/22.  Members were asked to consider the information provided.

9.2            The representative from Grant Thornton advised that the report included a series of questions and the responses received from Tewkesbury Borough Council’s management team which helped Grant Thornton, as external auditors, to understand more about the Council in terms of the financial risk assessment.  The general enquires were set out at Pages No. 52-54 of the report and included questions around the key events that would have a significant impact on the financial statements for 2021/22, the appropriateness of the accounting policies adopted by the Council, use of financial instruments and transactions outside the normal course of business as well as questions around the use of solicitors, service providers and advisors consulted through the year.  Members were informed that the Internal Standard on Auditing (ISO) 240 covered auditors’ responsibilities relating to fraud within financial statements and Grant Thornton was required to consider the arrangements in place with regard to fraud risk so a series of questions had been asked as set out at Pages No. 56-62 of the report.  It was noted there was always a presumption of fraud in terms of expenditure but this was usually rebutted for local government authorities and that was the case for Tewkesbury Borough Council this year supported by the responses from management.  Pages No. 63-65 of the report related to law and regulations and Pages No. 66-67 covered related parties.  In terms of matters related to going concern, set out at Pages No. 68-69, Members were advised that local authorities were assumed to be a going concern in the event of anticipated continuation of provision of services, unless there was clear evidence to the contrary.  Pages No. 70-73 related to the general enquiries of management in respect of accounting estimates with the estimates set out at Appendix A to the report.  The representative from Grant Thornton confirmed that nothing had been identified which was likely to cause an issue in terms of additional risks being identified.

9.3            A Member drew attention to Page No. 60 in relation to fraud risk and she asked whether staff were required to lock their computer screens when they left their desks.  The Head of Corporate Services confirmed that was the case.  In terms of Page 64, a Member noted that question four asked if there were any actual or potential litigation or claims that would affect the financial statements and the response stated that this would be disclosed in the financial statements – she felt this was inadequate and asked for clarification as to where the financial statements could be found and if anything had been identified in this regard.  The Head of Finance and Asset Management advised that the draft statement was on the Council’s website under Budget and Spending.  He stressed that the response in the report had been provided by the Council to Grant Thornton on the basis that it would not help to disclose any actual or potential litigation or claims for the purposes of this report; however, he undertook to let Members know if there was anything to disclose.  The Member felt it would also be useful to have a link to the relevant webpage.  With regard to question one on Page 67, a Member noted that all senior managers and Councillors had been sent a related parties form to complete and she asked if any Councillors had failed to complete them.  The Head of Finance and Asset Management advised that every attempt was made to achieve a 100% completion rate but he would check this following the meeting.

9.4            It was

RESOLVED           That the external auditor’s report on informing the Audit and Governance risk assessment for Tewkesbury Borough Council 2021/22 be NOTED.

Supporting documents: