Audit & Standards Committee
Agenda Item 24
Subject: Auditor’s Annual Report (Value for Money) Year ending 31 March 2023
Date of meeting: 26 September 2023
Report of: Grant Thornton (External Audit)
Contact Officer: Name: Darren Wells
Email: Darren.J.Wells@uk.gt.com
Ward(s) affected: All
Auditor’s Annual (Value For Money) Report Year ending 31 March 2023
1.1 The external auditor’s (Grant Thornton’s) Annual Report for the year ending 31 March 2023 reports on the council’s value for money arrangements. The report Auditor’s Annual Report on Brighton & Hove City Council Year ending 31 March 2023 is attached at Appendix 1.
1.2 The external auditor is required to consider whether the authority has put in place proper arrangements to secure economy, efficiency and effectiveness in its use of resources i.e. securing value for money. The report reviews this under three categories which are financial sustainability, governance and improving economy, efficiency and effectiveness. Appendix B (An Explanatory note on the recommendations) within Appendix 1 sets out three types of recommendations that can be made by the external auditors in this report which are:
· Statutory – written recommendations to which the council is required to discuss and respond publicly to the report.
· Key – recommendations where significant weaknesses have been identified.
· Improvement – recommendations which are not a result of identifying significant weaknesses.
The auditor can also issue specific reports in the Public Interest in cases where there are serious governance, financial, fraud or other weaknesses identified.
1.3 For the first category, statutory, there were no recommendations raised. However, on page 4 of their report the auditor notes that due to the scale of the council’s financial challenge, formal action by the auditor was considered and is being kept under review.
1.4 For the second year there is one ‘key’ recommendation (set out on page 4 of Appendix 1) highlighting continuing ‘significant weaknesses’ in the council’s financial sustainability. It is important to note that the majority of UK local authorities are facing similar challenges, particularly unitary authorities outside of London, in the current economic climate.
1.5 There are 5 other improvement recommendations made to which management has responded positively.
2.1 That the Audit & Standards Committee notes the Auditor’s Annual Report (Value For Money) for the financial year ending 31 March 2023.
3.1 This is set out in summary in section 1 of this report and in detail in Appendix 1.
4.1 The annual Value for Money review is a statutory requirement for local authorities.
5.1 The review must be published and considered by an appropriate committee of the council which in Brighton & Hove City Council is the Audit & Standards Committee. This ensures that the auditor’s findings are publicly available on the council’s website. The auditor also has statutory powers to bring other information and reports to the public’s attention, for example Public Interest reports, where this is warranted.
6.1 This report and appendix are for noting. The report contains improvement recommendations which the council has responded to positively and views as an important part of providing assurance over its financial, governance and performance arrangements and in helping the council to identify continuous improvement.
7.1 There are no direct financial implications arising from this report.
Finance officer consulted: James Hengeveld Date consulted: 18/09/2023
8.1 The Local Audit and Accountability Act 2014 makes it a requirement that the council’s external auditors consider whether the council has made proper arrangements for securing economy, efficiency and effectiveness in its use of resources (securing value for money). This committee is the appropriate body for the consideration of this report by elected members of the council.
Lawyer consulted: Elizabeth Culbert Date consulted: 18/09/2023
9.1 There are none identified.
10.1 There are none identified.
11.1 There are none identified.
Supporting Documentation
Appendix 1: Auditor’s Annual Report on Brighton & Hove City Council 2022/23