Issue - meetings

That the Audit Wales, Flintshire County Council - Detailed Audit Plan 2023 be approved.

Mike Whiteley introduced the Audit Wales Plan for 2023 comprising proposed financial and performance audit work for the Council including timescales, costs and responsibilities.

In summarising key sections of financial audit work, attention was drawn to the management override of controls which was a default significant risk present in all Audit Plans, along with other risk areas involving complex issues not specific to Flintshire.  On the audit of financial statements, changes to the timetable meant that the audit would not commence until November 2023 due to slippage in the work of Audit Wales and ongoing recruitment challenges.  In recognising the impact of this delay, Audit Wales colleagues were engaging with the Finance team to identify areas for early sample testing and were committed to a staged return to the earlier deadline over the next two to three years.

The Chair expressed concerns about risks associated with the slippage in the financial audit timetable in respect of officer resources and potential impact on budget-setting for 2024/25, particularly in view of the increase in audit fee.  His concerns were echoed by Councillor Bernie Attridge.

Mike Whiteley referred to the impact of the revised auditing standard ISA 315 on the financial audit approach and the expectation for the audit of the 2023?24 financial statements to be undertaken at an earlier stage than this year.  Councillor Attridge was provided with information on the local project on Planning Services on which similar work at other councils had helped to identify improvements to service delivery.

The Chair commented on the timeliness of the thematic review on the financial sustainability of local government across Wales, given the increased media focus on councils across the UK.  Carwyn Rees reported that work was in the initial stages with a view to sharing the findings by June 2024.

Councillor Andrew Parkhurst asked whether the thematic review on commissioning and contract management would look at the effectiveness of managing potential conflicts of interest to ensure that the Council achieved value for money.  Carwyn Rees was unable to confirm this specific point as scoping work was not yet concluded, however the review would focus on arrangements for the commissioning of contract services taking into consideration the achievement of value for money.

In response to a query from Sally Ellis on value for money arrangements as part of assurance and risk assessment work, Carwyn Rees explained the approach to identifying areas of focus.  The Internal Audit, Performance & Risk Manager confirmed that a recent report by Audit Wales would be brought to this Committee, following consideration by Cabinet and the Climate Change Committee, in line with the reporting protocol.

Mike Whiteley noted the concerns raised by the Committee on the revised financial audit timetable and would pass these back to his colleagues as requested by the Chair.

The recommendation was moved and seconded by Councillor Bernie Attridge and Brian Harvey.

RESOLVED:

That the Audit Wales, Flintshire County Council - Detailed Audit Plan 2023 be approved.