Report by:
Ann Davie, Chief Executive
TN Number:
037-24
Monday, 11 March, 2024
Subject:
Annual Audit of Council & Mugdock Accounts
Responsible Officer:
Jamie Robertson – Executive Officer – Finance & Digital Services
Publication:
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.
Details:
- The purpose of this note is to update Members on the delay to the completion of the 2022/23 external audit including the Annual Audit Report and other relevant disclosures as they relate to the Financial Statements and Annual Accounts of the Council, Charitable Trusts and Mugdock Country Park.
- Members will be aware that Mazars were appointed as the Council’s external auditors in 2022 following completion of Audit Scotland’s tenure in the same role during October of that year. In the intervening period Mazars have experienced significant challenges including the ability to resource the audit as planned with issues noted in recruiting suitable, qualified and capable staff to carry out the required work.
- The timetable for completion of the audit is set within Audit Scotland’s planning guidance as the 30 September 2023. This date was brought forward from previous years to align to pre-pandemic dates. The Council planned for completion of the audit work on this basis and as is required by the Local Authority Accounts (Scotland) Regulations 2014 Section 10,1, b.
- In their Audit Strategy Memorandum to the Audit & Risk Management Committee in June 2023 (Report CFO/021/23/GM), Mazars highlighted that they planned to conclude the audit process in October 2023 applying flexibility then offered by Audit Scotland to ensure ‘quality audit work be balanced against planned audit delivery’.
- Mazars have continued to experience difficulties in resourcing the audit in the intervening period. This has been compounded by challenges faced by key Council staff accommodating and responding to audit work outwith our own team plans and during a time where the same staff are now fully engaged in the implementation of the new financial management system including accounts payable, accounts receivable, procurement, general ledger and budgeting. Equally these teams are also at reduced capacity whilst at the same time being key to the delivery of the budget as well as revenue and capital monitoring.
- The Council’s Chief Finance Officer met with the Mazars on on Tuesday 5th March when it was determined that, due to the level of outstanding queries, and proximity of both the Mugdock Park Joint Management Committee and Audit & Risk Management Committee, audit completion and reporting was not reasonably achievable. Mazars and Council Officers continue to work together to resolve outstanding issues and provide required disclosures within the next cycle.