Issue - meetings

The Section 151 Officer presented an update from the Audit and Governance Committee on the application of the local authority backstop.

Members noted that the audit regime for local authority accounts has broken with only 1% of local authority bodies having published audited accounts on time last year, with a backlog of over 1,000 unaudited accounts.  

In response Government had laid legislation to set a statutory backstop of 13 December 2024 for the publication of audited accounts for all financial years up to and including 2022/2023; on the understanding this would not be possible for most cases, and these being then deemed disclaimed and not audited. 

Members were advised that the Council had published accounts for 2021/2022 and 2022/2023 but had not yet been audited.  A letter from auditors Grant Thornton stated that they consider there is insufficient time to conclude their work for these years before 13 December 2024.  The expectation by Grant Thornton is that they would apply a backstop for 2021/2022 and 2022/2023 giving a disclaimer on these accounts in that they had been unable to gain assurance necessary to issue an audit opinion by the backstop date.

Members were pleased to note that accounts for 2023/2024 have been through the public inspection period and it was envisaged that these accounts would be audited by the required backstop date of 28 February 2025 with the audit already in full progress and bringing the Council up to date without the need to rely on any future backstops.

Councillor Ian Barlow proposed the recommendation which having been seconded by Cllr Chris Burhop were unanimously carried.

RESOLVED:  That Council note the position of backstops being applied to the Council’s accounts for 2021/2022 and 2022/2023.

Peter Barber from Grant Thornton update Members about the backstop. He agreed this was not a desired position to be in and that this was a sector-wide problem across the Country. He pointed out that this did give an opportunity for a reset to work with the 2023/24 accounts onwards while meeting deadlines. The Committee’s remit was to make sure that this happened as this was public money, with the council needing to prepare audited accounts. 

The Chair stated that the ramifications for the 2021/22 and 2022/23 accounts going forward would impact future audits. Peter Barber confirmed this position but stated Grant Thornton were undertaking further work due to the backstop to give confidence in accounts going forward.

RECOMMENDED to Council;

That the backstop for 2021/22 and 2022/23 be recommended to Council with a covering report from the Director of Finance to explain the position for Members understanding.