Questions by Members (unless otherwise indicated:

Answers:

Is the 30 November deadline related to the LGR process?

(Sarah McKean) That's correct. The deadlines are set for us by PSAA and the local audit office. For this year, the deadline is 29 January. From next year, it will move to 30 November, which we expect to become the standard timetable going forward.

As you work on rebuilding assurance, will there be a requirement to liaise with our previous external auditors?

(Sarah McKean) The rebuilding assurance programme does not require any communication with the previous auditors. Our work follows a defined programme, beginning with a suite of risk?assessment procedures. These are nearly complete and will be reported to management by the end of July 2026. This phase covers entity?level controls, interviews with long?standing Council staff, analysis of movements in key accounts over the disclaimed period, and detailed review of usable and unusable reserves against publicly available reports such as budgets and outturns.

Once that work concludes in July, we will determine the additional substantive procedures needed. At present, these are expected to focus on PPE additions and disposals over the five?year period, as well as any deferred balances on the balance sheet that have not been auditable during that time. That work will take place after 31 July 2026.

With regard to the ongoing Corporate Risk Register review, could you explain how you engage with Officers on significant risks—especially the three you have identified—and how this integrates with the wider review work.

(Sarah McKean) The risks I have highlighted in our work are audit risks, or financial?statement?level risks. These do not typically align directly with the operational risks captured through the Council’s risk management process. Separately, we undertake our value?for?money work, and within the governance pillar of that we review the Council’s risk management arrangements. This includes assessing the policies in place, reviewing the risk registers, and considering the discussions held at relevant Committees. We have not yet completed that work, as it is scheduled for September, so I will be able to provide further commentary once it is finished. We do, however, examine risk management as part of that review, particularly in relation to financial sustainability. The three risks identified here are highly technical accounting risks and therefore do not usually appear in the operational risk register.

(Sue Gallone) Other than the valuation issue from last year, has anything in your planning with officers suggested risks to completing the audit on time or areas that may require additional audit effort?

(Sarah McKean) I expect the valuation work will require the greatest focus this year, simply because we have not previously had the opportunity to test it. However, based on last year’s audit, we have already been able to test almost all other areas of the accounts. We have found not only that the accounts are of a high quality, but also that the supporting evidence, the responsiveness, and the availability of the finance team have all been very good. I do not have any concerns about our ability to complete the audit within the required timeframe this year, particularly as the deadline is the end of January. From next year, the timetable will become tighter as we lose two months, but we will address that when the time comes.