This will be a verbal update instead of a written report.

A verbal up A verbal update from the Council’s external auditors, BDO LLP, was noted.

The Committee was informed that in line with the previously reported expectations, finalising the audit of the 2019/2020 financial statement of accounts was still in progress.

It was confirmed that the outstanding work was still regarding the Council’s acquisition of investment assets which it was estimated would take between 4 and 6 weeks to complete with final sign off for the accounts taking a little longer.

Members expressed their disappointment with this news.  It was agreed that if further slippage was likely beyond the anticipated October 2023 completion date for the 2019/2020 External Audit, the Committee would be advised prior to the next scheduled meeting in October.

The DLUHC had, that afternoon, issued proposals with regard to the future conduct of external audits and posed options to simplify and streamline the process as well as how best to deal with the backlog that a significant number of other local authorities were experiencing.  Officers would be in a position to present details of the proposals and any new regulations and guidance subsequently issued with regard to completion of External Audits to the next scheduled meeting of the Committee in October.  It was anticipated that the audit code of practice would be updated in December 2023.

The Committee was informed that it was unlikely that the audits for 2020/2021 and 2021/2022 could be produced in tandem, they would have to be done sequentially to comply with the existing auditing standards.  BDO stated that they had resources in place to start the 2020/2021 audit in the early part of 2024 and intended to complete both of the remaining audits, for 2021/22 and 2022/23, during 2025.  However, this was subject to the emerging guidance.  Whilst accepting this, Members were concerned about public perception and uncertainty caused by the continued delay.

It was noted that as the acquisitions in question still appeared in the opening and closing balances for 2022/2023; that any issues, if there were any, would still be reported and the responsibility for giving an opinion on Value for Money and Financial Sustainability remained relevant.

The Committee did not want to entertain the prospect of qualified audits; particularly if the Council had provided all sufficient and appropriate information requested by the external auditors in line with the guidance on disclaimers.  Officers would work closely with the external auditors to meet the necessary deadlines.

Officers from BDO were asked to provide a written report (rather than a verbal update) in advance for future meetings, if at all possible.  This would enable Members to consider questions to ask in advance of the meeting.

RBC Officers confirmed that the statutory notice regarding the closure of the 2022/2023 statement of accounts had been issued, noting that only 30% of local authorities had met the publication deadline.  The return to the pre-covid deadline of the end of May had not been achieved owing to a number of challenges.  For Runnymede, there were three issues to be resolved before the draft accounts for 2022/23 could be published.  These were: a minor accounting adjustment between the Housing Revenue Account and General Fund which needed to be resolved, updating for the transfers to reserves as recommended to a recent meeting of the Corporate Management Committee, and the Group accounts, which brought together all the accounts of the Council’s subsidiary companies, comments on which were awaited from the Companies’ accountants CSL.  Officers were confident these would all be resolved shortly so that a draft statement could be published at the end of August 2023.

Officers were thanked for their update which was duly noted.

date from Officers of BDO was noted.

The Committee was informed that the external auditors were unable to fulfil the previously reported expectation of finalising the audit of the 2019/2020 financial statement of accounts.

Officers stated that the outstanding work was still regarding the Council’s acquisition of investment assets which it was estimated would take between 4 and 6 weeks to complete but that actually being able to sign off the accounts would take a little longer.

Members expressed their disappointment with this news.  It was agreed that if further slippage was likely beyond the October 2023 deadline for the 2019/2020 External Audit, the Committee would be advised prior to the next scheduled meeting in October.

The DLUHC had, that afternoon, issued proposals with regard to the future conduct of external audits and posed options to simplify and streamline the process as well as how best to deal with the backlog that a significant number of other local authorities were experiencing.  Officers would be in a position to present details of the proposals and any new regulations and guidance subsequently issued with regard to completion of External Audits to the next scheduled meeting of the Committee in October.  It was anticipated that the audit code of practice would be updated in December 2023.

The Committee was informed that it was unlikely that the audits for 2020/2021 and 2021/2022 could be produced in tandem, they would have to be done sequentially to comply with the existing auditing standards.  Officers stated that they had resources in place to start the 2020/2021 audit in the early part of 2024 and that by 2025 they were confident of completing both the 2021/2022 and the 2022/2023 external audits.  However, this was subject to the emerging guidance.  Whilst accepting this, Members were concerned about public perception and uncertainty caused by the continued delay.

It was noted that as the acquisitions in question still appeared in the opening and closing balances for 2022/2023; that any issues, if there were any would still be reported and the responsibility for giving an opinion on Value for Money as dis Financial Sustainability remained relevant.

The Committee did not want to entertain the prospect of qualified audits; particularly if the Council had provided all sufficient and appropriate information requested by the external auditors in line with the guidance on disclaimers.  Officers would work closely with the external auditors to meet the necessary deadlines.

Officers from BDO were asked to provide a written report (rather than a verbal update) in advance for future meetings, if at all possible.  This would enable Members to consider questions to ask in advance of the meeting.

Officers confirmed that the statutory notice regarding the closure of the 2022/2023 statement of accounts had been issued, noting that some 30% of other local authorities were in the same position.  The pre-covid deadline of the end of May had not been achieved owing to a A verbal update from the Council’s external auditors, BDO LLP, was noted.

The Committee was informed that in line with the previously reported expectations, finalising the audit of the 2019/2020 financial statement of accounts was still in progress.

It was confirmed that the outstanding work was still regarding the Council’s acquisition of investment assets which it was estimated would take between 4 and 6 weeks to complete with final sign off for the accounts taking a little longer.

Members expressed their disappointment with this news.  It was agreed that if further slippage was likely beyond the anticipated October 2023 completion date for the 2019/2020 External Audit, the Committee would be advised prior to the next scheduled meeting in October.

The DLUHC had, that afternoon, issued proposals with regard to the future conduct of external audits and posed options to simplify and streamline the process as well as how best to deal with the backlog that a significant number of other local authorities were experiencing.  Officers would be in a position to present details of the proposals and any new regulations and guidance subsequently issued with regard to completion of External Audits to the next scheduled meeting of the Committee in October.  It was anticipated that the audit code of practice would be updated in December 2023.

The Committee was informed that it was unlikely that the audits for 2020/2021 and 2021/2022 could be produced in tandem, they would have to be done sequentially to comply with the existing auditing standards.  BDO stated that they had resources in place to start the 2020/2021 audit in the early part of 2024 and intended to complete both of the remaining audits, for 2021/22 and 2022/23, during 2025.  However, this was subject to the emerging guidance.  Whilst accepting this, Members were concerned about public perception and uncertainty caused by the continued delay.

It was noted that as the acquisitions in question still appeared in the opening and closing balances for 2022/2023; that any issues, if there were any, would still be reported and the responsibility for giving an opinion on Value for Money and Financial Sustainability remained relevant.

The Committee did not want to entertain the prospect of qualified audits; particularly if the Council had provided all sufficient and appropriate information requested by the external auditors in line with the guidance on disclaimers.  Officers would work closely with the external auditors to meet the necessary deadlines.

Officers from BDO were asked to provide a written report (rather than a verbal update) in advance for future meetings, if at all possible.  This would enable Members to consider questions to ask in advance of the meeting.

RBC Officers confirmed that the statutory notice regarding the closure of the 2022/2023 statement of accounts had been issued, noting that only 30% of local authorities had met the publication deadline.  The return to the pre-covid deadline of the end of May had not been achieved owing to a number of challenges.  For Runnymede, there were three issues to be resolved before the draft accounts for 2022/23 could be published.  These were: a minor accounting adjustment between the Housing Revenue Account and General Fund which needed to be resolved, updating for the transfers to reserves as recommended to a recent meeting of the Corporate Management Committee, and the Group accounts, which brought together all the accounts of the Council’s subsidiary companies, comments on which were awaited from the Companies’ accountants CSL.  Officers were confident these would all be resolved shortly so that a draft statement could be published at the end of August 2023.

Officers were thanked for their update which was duly noted.

 number of challenges.  For Runnymede, there were three issues to be resolved.  These were: a minor accounting adjustment between the Housing Revenue Account and General Fund which needed to be resolved, updating for the transfers to reserves as recommended to a recent meeting of the Corporate Management Committee, and the Group accounts, which brought together all the accounts of the Council’s subsidiary companies, comments on which were awaited from the Companies’ accountants CSL was awaited.  Officers were confident these would all be resolved shortly so that a draft statement could be published at the end of August 2023.

Officers were thanked for their update which was duly noted.