DECISION

That the financial performance for 2021/22 be accepted.

Reason:

1.    Following the Redmond Review, the Ministry of Housing, Communities and Local Government (MHCLG) put in place revised regulations that came into force on 31st March 2021. The Accounts and Audit (Amendment) Regulations 2021 extended the statutory audit deadlines for 2020/21 and 2021/22 for all local authorities. As a result, the publication date for audited accounts moved from 31st July to 30th September for the two financial years in question. The public inspection period must now commence on or before the first working day of August, effectively requiring the unaudited accounts to be signed off and published by 31st July.

2.    Members will be aware that the audit of the 2020/21 accounts has still not been finalised, some 8 months after it commenced. There is no doubt that the COVID-19 pandemic continues to have an impact on the audit process, but our auditors have also experienced resourcing issues, as have others in the public sector audit market, and this has also played a part in the delay in sign-off. EY have recommenced work on the 2020/21 audit during June and now expect to complete in early August. The Audit of the 2021/22 accounts will not commence until the 2020/21 audit is complete. Clearly this is disappointing but is outside of the Council’s control. Naturally, if there is any change to the financial performance, due to amendments arising from the audit, this will be reported to Cabinet as soon as practically possible following completion of the audit.