Report of the Assistant Director Resources/Treasurer

The Panel considered the report of the Assistant Director Resources/Treasurer (ADR/T) which provided an update on the Department for Levelling Up, Housing & Communities (DLUHC) commitment to improve local audit in response to the Redmond Review.  The government commissioned Sir Tony Redmond to undertake an independent review into the effectiveness of local audit and the transparency of local financial reporting which was published in September 2020.  In December 2021 DLUHC published a series of commitments setting out how it intended to address the key issues identified in the Redmond Review, these had been reported to the Panel in January 2022. 

The DLUHC had published an update to these commitments which were set out in full in Appendix 1.  These included systems leadership (establishing a new regulator), the focus of local audit, Procurement/appointing person arrangements Additionally there were commitments to progress the implementation of recommendations relating to auditor training and qualifications, the functioning of local audit and governance, the transparency of local authorities’ accounts, the audit of smaller bodies and the appointment of Independent Members to Audit Committees.  Funding had been provided by DLUHC to meet the increased cost of audit in 2021/22 and to fund any costs relating to the Redmond Review, however, the allocation made to the Service was insufficient even to cover the external audit fee scale variation.

There were several outstanding actions from the Redmond Review Working Group, including a review of the Panel’s Terms of Reference, skills audit of panel members, matters relating to the appointment of an independent member and whether training for Panel members could be made compulsory.  There was an overlap with these outstanding actions and with the commitments made by DLUHC.  No further action had been taken, due to the delay in publication of the CIPFA audit committee guidance.  The Panel queried the constitution of the Working Group, the proposed timetable and whether it would be a task and finish group.  It was confirmed that the Redmond Review Working Group would be made up of volunteers from the Panel membership, they are informal meetings but work to a definite deadline and with an aim of completing the tasks that were required.  Cllrs Maples and Lambert volunteered to become members of the Working Group; Cllr Scott would be approached to see if he would be happy to resume his previous membership.  The Working Group would not meet until the CIPFA guidance had been published and Officers had been able to consider suggestions within, therefore the likelihood was that its first meeting would not be until the Autumn.

There was a query from the Panel regarding the engagement of local audit firms.  The ADR/T confirmed that there was a range of local audit companies tendering through the PSAA’s procurement process.  There had been bids submitted to PSAA with a closing date later in the Summer, they had included a way for smaller companies, i.e., those who audited parish councils.

It was queried whether there should be Key Performance Indicators set for the Scrutiny & Audit Panel.  The ADR/T stated that this would be entirely a matter for the Panel to decide whether it would be necessary and what those KPI’s might be.

RESOLVED – The Panel agreed that:

       i.         they had considered the DLUHC update and the CIPFA position statement; and

     ii.         the Redmond Review Working Group would be re-established, when appropriate to do so, to review the Authority’s compliance with the CIPFA audit committee guidance (when published) and the other actions arising from the Redmond Review.