Agenda item

The Committee considered a report which provided an overview of the programme of work that the external auditor, Grant Thornton, would undertake in order to deliver their audit of the 2019/20 Financial Year.

Paul Dossett, Engagement Lead, Grant Thornton, outlined the programme of work and the thoughts and practices behind it. It was reported that a similar pattern of work would be undertaken as in the previous year, and would cover all the work required for completing the review of the Council’s 2019/20 financial statements and the value for money conclusion.

The report provided details of the timetable, with the statutory deadlines for the unaudited accounts and approved audited accounts remaining at 31st May and 31st July respectively, as in previous years. It was reported that it was an achievable deadline and a target that had been achieved by DMBC previously, putting them in only the 58% of authorities nationwide who had managed this.

The Committee asked a number of questions in relation to the service provided and sought reassurance that once there had been a staff handover following Paul Dossett’s departure from the Doncaster Team that there would still be a wealth of audit experience to maintain the momentum. Members were assured that high quality support would continue, and Perminder Sethi, who had been engaging with Doncaster over the past year, would continue to be part of the Team.

Through the course of the discussions, the Chair referred to the letter attached to the report regarding the fee increases for the coming financial year.  Members of the Committee were very concerned with what was essentially a 20% increase in fees and queried what justification there was for this. Members were concerned that the taxpayer was getting value for money as a result of the fee increases as essentially; the cost was laid at their door. It wasn’t a moderate increase but a substantial rise, for which the Council would get no better service or any additional benefits. The Committee commented that they wished for their concerns to be passed on to the PSAA in order for a rigorous review of the increases to be carried out. The Committee stated that there needed to be moderation over these fee increases checking if this was standard across the country and that Doncaster was not being singled out. The Committee felt that they were paying a lot more money for the audit tendered only a relatively short time ago.

Paul Dossett, Grant Thornton, acknowledged the concerns of the Committee and confirmed he would refer these back and whilst he understood their frustrations, explained that there were now more challenges faced nationally by auditors, and new expectations placed on them continually which resulted in the bar being moved on a frequent basis. Many additional costs were currently being absorbed by the company nationally, with a great deal of additional work undertaken.

Members thanked Grant Thornton’s representative for his response, but there was a consensus amongst the Committee that they were not satisfied with the principle of increasing the tendered fees and requested that a letter be sent on behalf of the Chair and the Committee to the PSAA stressing their dissatisfaction with the current position they faced.

Members acknowledged there might be annual variations, but it was a priority to ask the PSAA, as the appointing body to carry out a rigorous evaluation of the fees.

Prior to the conclusion of the item of business, Paul Dossett expressed his thanks and gratitude to the Committee. He was moving on to another area of the country, and wished to place on record his thanks for the warm welcome as well as the challenges and questions he had been presented with. He commended the Committee on their professional manner and polite and courteous behaviour.

            RESOLVED that:-

1)    The Audit Committee note the contents of Grant Thornton’s Audit Plan 2019/20;

2)    The Audit Committee note the arrangements, including the draft timetable to produce the 2019/20 accounts; and

3)    A letter be sent to the PSAA on behalf of the Chair and Committee regarding the Committees concerns surrounding the fee increases for 2020/21.