The Audit Committee of Ealing Council met on Thursday, 26 September 2024, to review the council's financial performance and audit arrangements. Key discussions were scheduled to cover treasury management updates, audit backlog issues, external audit progress, and the council's statement of accounts. The committee also planned to review internal audit progress reports and risk management.

Treasury Update (Q4 / Q1 Outturn)

The committee was scheduled to receive an update on the council's treasury management activities and performance for the fourth quarter of the 2023/24 financial year and the first quarter of 2024/25. This included reviewing the council's borrowing and investment activities, performance against targets, and the council's investment balance. The report, titled Treasury Management Outturn Update 2023/24 [1], outlined that all treasury management activities had been carried out within approved limits. It also noted prevailing economic conditions and recommended that members note the treasury management activities and performance against targets for the period to 31 March 2024, as well as the council's investment balance of £511.686m as at 31 March 2024.

A separate report, Treasury Management Q1 Update 2024/25 [2], provided an update for the quarter ending 30 June 2024. This report indicated that all treasury management activities had been carried out within approved limits and noted the council's investment balance of £526.928m as at 30 June 2024.

Audit Backlog Update

A report was scheduled to discuss the government's efforts to address the backlog in local government audits across England. The Audit Backlog Update 2024 [3] detailed immediate actions being taken by various bodies, including the Financial Reporting Council (FRC) and the National Audit Office (NAO), to clear the backlog and establish a sustainable local audit system. Proposed secondary legislation to facilitate timely audits, set backstop dates, and manage audit fees was also to be discussed. The report noted that auditors were likely to issue 'disclaimed' audit opinions for outstanding accounts up to 2022/23, and that this was a response to a national issue.

External Audit Update (Financial Years 2022 and 2023)

The committee was to receive an update from Deloitte LLP, the council's appointed external auditors for the financial years 2022 and 2023. The report, External Audit 2022 and 2023 [4], outlined how Deloitte would deliver the audit of the financial statements for the Council and the Pension Fund up to the proposed December 2024 backstop date for all open accounts to 2023. Deloitte LLP was in attendance to present these reports. A separate report, Ealing Backstop Planning Report Final [5], provided specific planning details for the 2022/23 audit, noting that due to time constraints, it would not be possible to complete all audit work required under auditing standards before the backstop date, likely resulting in a disclaimer of opinion.

Statement of Accounts (Q4)

The committee was scheduled to review the draft 2023/24 Statement of Accounts [6]. This report presents the overall financial position of the council in the balance sheet and details revenue activities for the 2023/24 financial year, including the General Fund, Pension Fund, Collection Fund, Housing Revenue Account, and Group Accounts. The committee was asked to note the report and the publication date of the draft statement of accounts.

Quarter 4 Reports

The committee was to receive a covering report [7] for Quarter 4 documents, which included:

• Annual Governance Statement [8]: This report outlines the council's compliance with its Code of Corporate Governance and highlights how financial management arrangements conform to CIPFA's Statement on the Role of the Chief Finance Officer. It also details the outcomes of the review of the effectiveness of internal control.
• Head of Internal Audit’s Opinion 2023/24 incorporating Quarter 4 Internal Audit & Investigation Update Report [9]: This report provides an update on the work of the Internal Audit & Investigation team for the period 1 January 2024 – 31 March 2024, and includes the Head of Audit's annual opinion for 2023/24. The opinion indicated reasonable assurance on the overall control framework, an improvement from the previous year's limited assurance.

Progress Report on the Work of Internal Audit and Anti-Fraud (Q1)

A report was scheduled to provide an update on the performance of the Internal Audit & Investigation team for the first quarter of 2024/25 (1 April to 30 June 2024) [10]. This report details the work undertaken against the internal audit plan and includes outcomes and performance of investigations. The report indicated that 11% of the audit plan was completed by the end of Q1, with some delays attributed to recruitment challenges.

Risk Management (Q1)

The committee was to receive an update on the council's Strategic Risk Register (SRR) and Heat Map for the first quarter of 2024/25 [11]. This report highlights key risks identified and the status of their mitigations. There were no material changes to the risk register since the previous quarter, although a number of mitigations had been updated.

Annual Work Programme (Q1)

A draft indicative work plan for 2024/25 was presented for the Audit Committee's agreement [12]. This plan outlines the proposed audits and reviews for the upcoming year, allowing members to agree on the programme.