Agenda item

External Audit: 2021 Draft Audit Plan - Isle of Anglesey County Council

To present the report of External Audit.

Minutes:

The External Audit report incorporating the proposed Audit Plan for the 2020/21 audit year was presented for the Committee’s consideration. The Plan set out the work proposed to be undertaken in relation to the financial audit, the performance audit programme for the year along with the programme of grant certification work and audit reporting timetable.

 

Mr Alan Hughes, Performance Audit Lead for Audit Wales summarised the External Auditor’s responsibilities with regard to the audit of financial statements, and in relation to assessing the Council’s arrangements for obtaining value for money from the resources it uses and the extent to which it applies the sustainable development principle when setting and taking steps to meet its well-being objectives. He referred to the performance audit programme for 2021/22 which comprised of pieces of work relating to the Well-being of Future Generations Act (Wales 2015) (WFG examination) the details of which are to be confirmed; Assurance and Risk Assessment around arrangements to secure value for money in the use of resources and thematic work in relation to the transformative and adaptive capabilities of councils in building for a sustainable future. He confirmed that Audit Wales will continue to work flexibly to deliver the audit work set out in the plan and is committed to ensuring that this work will not impede the activities that the Council needs to do to respond to ongoing challenges presented by the Covid19 pandemic.

 

Yvonne Thomas, Audit Wales Financial Audit Manager elaborated on the key financial statement audit risks identified at the planning stage and the proposed audit response in dealing with those risks and she confirmed that the risks are applicable to all councils in Wales.

 

The Committee raised the following points on the proposed audit plan –

 

           The arrangements that will replace the External Auditor’s continuous improvements responsibilities which will no longer apply as a result of changes arising from the Local Government and Elections (Wales) Act 2021.

 

Mr Alan Hughes clarified that under the Local Government (Wales) Measure 2009 Audit Wales undertook to certify the Council Plan and Improvement report and issued certificates to that effect. The new legislation places a duty on councils to review and report on their performance by way of self-assessment which Wales Audit will examine in order to obtain assurance regarding the work undertaken by councils in Wales and will be a key component of the assurance framework which will in turn feed into External Audit’s assurance and risk methodology.

 

           The purpose and functions of Corporate Joint Committees to which reference is made as part of the key financial audit risks identified under other matters.

 

The Director of Function (Resources)/Section 151 Officer clarified that the Local Government and Elections (Wales) Act 2021 provides for the establishment of Corporate Joint Committees (CJC) which are designed to enable certain functions – economic development; transport, strategic planning and education improvement - to be delivered strategically at regional level thereby making more efficient use of resources. A North Wales Regional Corporate Joint Committee encompassing all six North Wales local authorities forms part of the arrangements. The CJCs are corporate entities in their own right and will be able to employ staff, hold assets and set budgets.

 

It was resolved to accept the 2021 External Audit Plan and to note its contents.

 

NO PROPOSAL FOR ADDITIONAL ACTION WAS MADE

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