This Technical Note will be published on the Council’s website following circulation to Members. Its contents may be disclosed or shared outwith the Council.
The Council continues to be advised of delays to the Audit of Financial Statements which have prevented the maintenance of the required cycle of Financial Reporting within its Annual Accounts.
In December 2024 Council agreed the 2022/23 Financial Statements having passed these to External Auditors in March 2023 as set out in TN-112-23. Delivery within an 18-month timescale were unprecedented with significant implications for the completion of the work for 2023/24 now the 2024/25 Financial Statements.
In addressing these ongoing risks Officers have now implemented temporary arrangements to supplement resources within the Finance team and bring Financial Reporting back within Statutory Timescales. These arrangements are specified to support enhanced delivery within an exceptionally challenging plan of work set against overlapping priorities and financial years.
Interim arrangements have been implemented to move the Council’s Chief Internal Auditor, Gillian McConnachie, into a Financial Compliance Manager role supporting the two Principal Accountants in Finance whilst working closely with Forvis Mazars, the Council’s External Auditors, and holding them to account. This will also ensure that the provision of information to auditors is aligned to their resource plans and that these are adequate to address the backlog of work.
As a temporary measure the Paul Brown, one of the Council’s long standing Senior Auditors, will cover the role of Audit & Risk Manager including the Chief Internal Auditor role supported by the Chief Finance Officer.
The Council’s Chief Finance Officer will continue to lead all aspects of this work whilst accelerating meetings with Audit Scotland to reinforce that the criticality of the current, unstainable, situation. This liaison will require an equal commitment from Audit Scotland, as the procuring body, to ensure that Forvis Mazars, in delivering the audit, is held to account in terms of their performance and audit approach.
Furthermore, the Council’s Chief Executive will meet with the Controller of Audit to further reinforce the criticality of the situation, setting out the commitments made by Council to bring audit arrangements back on track, and adhere to statutory requirements.
Progress will be Reported back to Council in due course.
