Agenda item

3.1      The Acting Chief Accountant presented the report. He said that the amendments to the 2022/23 Audit of Accounts by 30 November 2023 had not been achieved as had been hoped. This was because some evidence around leases and asset information was not available. Officers now had the information which had been cleared by Grant Thornton. Officers had been agreeing all the amendments that had been put into the accounts. A cash amendment was still outstanding and would be sent to Grant Thornton for clearance, but officers were very close to closing the audit. It was hoped that the final statement would be agreed with Grant Thornton in the next few days.

3.2     The Audit Findings Report and all the addendums would be submitted to a future meeting of this Committee. They would be formally agreed by the Chair and the Acting Executive Director of Corporate Resources and the final accounts agreed with Grant Thornton.

3.3      A representative from Grant Thornton, Ms Brown addressed the Committee. She assured members that no material adjustments had come out since this Committee reviewed the audit report. They were all captured in the amendment document. She said that she had not noted anything of concern. The annual audit report was also in the agenda pack which was a more detailed report covering Grant Thornton’s value for money responsibilities. It required final management. It would be finalised with management responses but management had seen the report and agreed it in principle.

3.4      The Acting Director of Finance advised that responses to the Value for Money Report were being collated. A report would be brought back to the next meeting of this Committee which would include management responses.

3.5      A member referred to the VFM report and improvement recommendation 1. It was considered to be vague. Grant Thornton were asked whether they were aware of any organisations or strategies along he lines suggested for implementation. Ms Brown said that this was classed as a minor improvement point but accepted the member’s point regarding sharing and learning. She agreed to identify other local authorities that Lewisham may wish to contact to  identify whether there was anything further, in the way of actions, that could be taken. She agreed to share some examples with the Acting Executive Director for Corporate Resources. This could possibly be built into the management response.     

3.6      In response to a question about improvement recommendation 3, members were advised that officers were clear about what savings were required and the action needed to be put in place to achieve these savings. Reporting reflected this and it would form part of the management response that was being drafted. There had been previous discussion at Public Accounts Select Committee, and recommendations regarding the importance of sufficient sensitivity analysis. Going into next year, this was partly about moving to a forward look rather than a backward one and ensuring that there is a broader look at the risks and the potentials. In January there would be discussions about overspends reduction before the budget. This followed some of the recommendations made by Grant Thornton and officers would continue to look at making improvements.

3.7      A councillor asked a question about information regarding amendments to collection fund creditors and debtors as set out at page 61 of the agenda. Mr Jacklin advised that the adjustments were fairly small and did not have a massive impact on the position. They were moving in the same direction. The debtors figures were decreasing and creditors were increasing In totality, it was a £3m figure which was below materiality levels. The acting Chief Accountant agreed to supply more detailed information to the member if required.

3.8      The Chair wanted to place on record her thanks to everyone involved in this Audit and was pleased to see stability in the accounts going forward. She thanked Grant Thornton for their work of the past few years and looked forward to seeing the final version of the 2022/23 External Audit of the Statement of Accounts.

            RESOLVED that the following be noted:

            (i) the contents of the report.

(ii) the Audit Findings Reports 2022/23 and addendums from Grant Thornton following the external audit of the Council’s Statement of Accounts and Pension Fund Accounts; and

(iii) the Auditor’s Annual Report 2022/23 from Grant Thornton