Agenda item

(A report by KPMG, External Auditors)

The Engagement Director, KPMG presented the Final External Audit Plan and Strategy for the year ending 31 March 2024, which provided details of the final updated external audit plan and memorandum as at 31^st March 2024, the previous version of which was presented to the Committee in July. This version was presented to members upon completion of the planning and risk assessment work over the financial statements and value for money arrangements in place at the Council as at 31^st March 2024, with all changes within the report from the previous version included in green.

The Engagement Director, KPMG highlighted the following key points:

·         An update to the group and Council materiality and misstatement reporting threshold, which had been updated upon receipt of the draft financial statements and updated benchmark figures which are total expenditure for the year (page 15).

·         A refinement of significant risk over the valuation of land and buildings, with further focus on that risk to consider in more detail the assets valued under the depreciated replacement cost method (page 18).

·         The conclusion that no significant risks had been identified and that no significant weaknesses were evident within the Council's arrangement to secure value for money in the year.

Councillor David Middleton referred to his previous experience with the British Steel’s pension fund being oversubscribed which had consequently allowed them to take a holiday and not pay in due to cash overflow. He queried whether, considering the change on the market conditions and the pension funds growing quite well, Boston Borough Council was ever likely to be in a position where it could take a pensions holiday. The Deputy Chief Executive – Corporate Development & S151 advised that it would depend on the status of the fund at any particular point in time, and also in terms of the state of the international markets and the value of investments. She added that Boston's fund had done better over the past few years and that the market conditions had improved. However, it was more likely to be a case of whether or not a review showed that the fund needed less levels of contributions than what it had received in the past.

Councillor Mike Gilbert referred to the overall position as a Council over the last year and assessed it as a positive one, highlighting the amount of savings. He noted that there were still significant challenges for the forthcoming years and queried about plans on how to move forward. The Engagement Director, KPMG advised that it was management’s responsibility to ensure the  short term, medium and long term financial viability and that they would have plans in terms of their medium term financial strategy and short term budget arrangements.

Councillor Gilbert queried whether the External Auditors had looked into the B&M purchase in terms of due diligence. The Engagement Director, KPMG stated that no issues had been identified. However, he agreed to look into the matter and report back.

Councillor James Cantwell referred to mentions of the Efficiency Board within the report and queried the arrangements. The Deputy Chief Executive – Corporate Development & S151 advised that the Efficiency Board was an Officer Working Group which fed into the Finance Portfolio Holder and Cabinet in terms of monitoring savings, efficiencies and opportunities. The Chairman added that members were entitled to attend meetings of the Cabinet and ask questions.

RESOLVED:

That the report be noted.