Agenda item

The Finance Manager presented their report which asks Members to consider the 2025/26 External Audit Strategy memorandum from the External Auditors, Mazars.  Jennie Norman, Audit Manager at Mazars was present at the Authority meeting to present the memorandum and to answer any questions. There were no updates since the report was circulated.

The following areas were discussed:

•         Jennie Norman mentioned that this is a standard report that is brought every year to Authority

•         This year the timeline is different from previous years and the deadline for publishing the audited statement of accounts has been brought forward to the end of January from the end of February.  This will continue to be brought forward and the audit plan is now in March.    Value For Money reporting has stayed the same and conclusions have to be brought by end of November to Authority

•         Risks – Last year these were at “enhanced risk” on IFRS16 leases, as there were no significant issues identified, this year these are now “standard risks”

•         Pensions will be in a triennial pension review for the Local Government Derbyshire Pensions Fund which means there will be more work and procedures involved this year

•         Materiality has increased – gross operating expenditure is the benchmark – no significant issues found in the prior year

Member questions:

•         Members asked about Audit fees. The tri-annual review of pensions may possibly be an increase in cost – fees are based on PSA hourly fee so potentially there may be additional fees but there is a contingency fee in the budget to cover this.

The recommendation as set out in the report was moved, seconded, put to the vote and carried.

RESOLVED:

1.      That the 2025/26 External Audit Strategy memorandum for the 2025/26 Statement of Financial Accounts be noted.