Agenda item

A report from Bury’s External Auditors, Mazars, is attached.

Karen Murray presented the Committee with an update of the progress made by Mazars in relation to the work for the 20/2021 financial year. The report had two purposes, firstly to ensure that the audit work is on track and secondly to ensure that the Committee were satisfied with the governance of the council.

Karen reported that the External Auditors would not be able to deliver the audit work in line with the deadline of the end of September as set out in the regulations, but would be reporting back to the Committee in November.

A notice would be published on the Council website which would state that the work was ongoing, as long as this was done then the Council will have complied with its statutory duties.

As at end of June 2021 there were still 100 authorities who were waiting on their 2019/2020 accounts to be audited and work hadn’t even started on their 20/2021 accounts.

Karen referred to the work that was ongoing in relation to the findings of the Redmond Review and how this would inform the audit regime going forward.

Karen also referred to other information that was provided in section two of the report that set out the guidance from the National Audit Office relating to changes in respect of the VFM that the external auditors carried out and how from 2021the new code of practice will direct the external auditors to provide a commentary and not give a conclusion as previously.

Karen also referred to the Government Office report on the response to the pandemic and explained how this was useful as it set out the challenges that had been faced and would be faced by local authorities and S.151 Officers going forward.

The Audit Strategy will be brought to the next meeting of the Audit Committee

Those present were given the opportunity to ask questions and make comments and the following points were raised:-

• Councillor Whitby stated that it was disappointing that the work would not be completed in the required timescales. Councillor Whitby referred to the work that had been carried out by the Council Officers.

• Councillor Gartside referred to the number of Councils that still not had their 2019/2020 audits completed.

Karen explained that there were a number of Councils that not had their 2019/2020 Audit of accounts completed which meant that work could not start on the 2020/2021 accounts. Bury were not within this group and therefore the 2020/2021 accounts would be audited but the work would be completed late.

• Councillor Gartside asked what the issues were regarding the lateness of the audit last year.

Karen explained that this was the first year that Mazars were working remotely due to the pandemic. It was also explained that the Council had agreed that they would complete the work later to enable the Council to deal with the issues highlighted the previous year.

• Councillor Gartside asked if the audit completion work should be back on track for the following year.

Karen explained that measures were in place to deal with the back log at a national level as 60% of Council’s would not have their accounts audited within the timescales. Actions were in place and proposals were currently being consulted on. It was explained that it was anticipated that it would take a couple of years to get back on track.

• Councillor Rydeheard referred to the background behind the issues around the deadlines and Council’s not meeting these.

Karen explained the background around this and how deadlines had been changed to assist with the work being completed.

Councillor Whitby referred to the fact that the national situation was worsening as the numbers of councils not meeting the deadlines had increased.

Delegated decision:

That the contents of the report be noted.