Issue - meetings

At the chair’s request, the committee agreed to consider the contents of report AG175 alongside AG174 as there was significant overlap between both.  Simon Mathers (EY) also agreed to this approach.

Mr Mathers (EY) introduced the report and emphasised that apart from the issue identified at Appendix B of AG174 where the auditors had been unable to gain assurance, the council’s accounts and financial arrangements were generally of a good quality.  However, the auditor’s view was that resolving the judgemental differences relating to the land and property valuations were now a high priority. 

Mr Mathers advised that the management response referred to at Appendix A of AG174 had been received since the report was published and would be included in the final report.  It was noted that the Director (Finance) had circulated the text of the management response to committee members prior to the meeting as set out below.

Management response

Management will continue to deliver the Housing Compliance Improvement Plan.  In response to the SIAP and Counter Fraud reviews, management has also compiled a Housing Property Services Improvement Plan which addresses the weaknesses in internal control and risk management arrangements.  Progress against this improvement plan will be monitored by the Executive Leadership Board and reported, at a summary level, to the Cabinet Committee: Housing.  Many of the proposed improvements have been considered in drafting the ITT for the new repairs and maintenance contract, where enhanced technology and workflows will improve controls.

The Director (Finance), Mr Mathers and Councillor Cutler responded to questions and comments made.  The Director (Finance) acknowledged that there were judgemental differences between the assumptions used by the valuation teams employed by EY and the council and her intention was to work with both sides to resolve the issue prior to the next audit, however this was reliant on receiving detail from the EY team on those differences. Mr Mathers confirmed that he would provide the granular detail used in the EY valuations to enable this.

The Director (Finance), Mr Mathers and Antony Harvey (SIAP) also responded to questions regarding identified issues relating to housing property services for the Housing Revenue Account (HRA) properties.

RESOLVED:

1.              That the Annual Audit Report 2024/25 be accepted.