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Paul Harvey attended the
meeting on behalf of Grant Thornton (External Auditor) and provided
an audit update report which stated that Grant Thornton’s
audit planning for 2021/22 financial statements had been delayed
due to outstanding legacy council audits. It was stated that this
had also had an impact on the Council’s ability to prepare
financial statements for 2021/22.
 
Planning work has been
undertaken by External Audit in relation to:
 

·      
Preliminary going concern assessment

·      
Review of the journal control environment

·      
Review of the IT environment

·      
Gained an understanding of some businesses processes
for significant transactions in the financial
statements.
 
It was reported to the
committee that work in these areas identified issues in relation to
the IT and the Journal control environment. 11 significant
deficiencies, 14 deficiencies and 3 improvement opportunities were
identified in relation to the IT environment.  Majority of deficiencies related to legacy IT
systems and risk mitigation had been identified and
implemented.
 
An update was also provided in
relation to the current backlog of Local Government audits where
the Government is implementing a backstop. It was noted that the
consultation period was due to commence imminently on a
30th September backstop date. Members heard that the
backstop would require auditors to issue a disclaimed opinion on
all audits up to and including 2022/23 that had not been signed off
by September 2024.
 
External Audit were planning to
commence planning work for the 2023/24 audit in February 2024 with
an eye to present an audit plan to members of the Audit &
Governance Committee at its next meeting in April 2024.
 
Members heard that North
Northamptonshire Council was working with West Northamptonshire
Council to disaggregate the closing balances of Northamptonshire
County Council. Although both authorities have been able to agree a
significant proportion of these balances there area a small number
of areas whether there is a disagreement on how the balances should
be split. For these areas the Council’s were seeking
arbitration to determine the disaggregation. External Audit stated
the matter as a significant weakness in their Value for Monney
assessment of the Council for 2022/23 and raised concerns regarding
the process.
 
It was heard that determination
arrangements had been put in place following correspondence by both
authorities to the Secretary of State. The Council was yet to
receive a response regarding arrangements for next steps.
Conversations remained ongoing with West Northamptonshire Council
and Grant Thornton.
 
Grant Thornton issues their
Value for Money arrangements for 2021/22 and were undertaking work
on the arrangements for 2022/23. No significant weaknesses in
arrangements identified but improvement recommendations were made
in relation to financial sustainability, Governance and Improving
economy, efficiency and effectiveness.
 
Members then received an update
regarding Corby Borough Council legacy accounts. It was noted that
the accounts were yet to be signed off by Ernst & Young
(External Auditors). The accounts were yet to go through the
professional review where there were five separate items under
review. Three items had been completed and may potentially require
minor disclosure changes.
Both officers and members declared their disappointment and concern
regarding the delay in the accounts being signed off by external
audit. It was also noted that the Northamptonshire County Council
accounts had been signed off.