Agenda item

1.     The report was introduced by Sarah Ironmonger from Grant Thornton. The following key points were highlighted to Members:

        a)     It was reported that audit activity was currently limited, as expected, to allow the finance team to prepare the accounts. However, regular meetings with officers were continuing to address any emerging issues.

        b)     The Committee was advised that, for Kent County Council, audit planning work had been completed and advanced testing on income and expenditure had been undertaken to reduce the level of work required during the final audit fieldwork phase. Work on IT general controls, including the migration from Oracle EBS to Oracle Fusion, was substantially complete, with no issues identified to date.

        c)     In relation to the Kent Pension Fund, it was reported that planning work and advanced testing had been completed, alongside work on the triennial valuation. No issues had arisen from this work.

        d)     Members were informed that Value for Money work had commenced, with initial mobilisation discussions having taken place with officers. Further work would begin once work on NHS audits was completed.

        e)     An update was also provided on grant certifications, noting that the Teachers’ Pensions return for 2020/21 had been signed off, with 2021/22 expected to be completed shortly and 2022/23 to follow thereafter.

2)     In answer to Member comments and questions, the following was said:

        a)     A Member requested that responses to suggested audit questions included in the report be provided by officers in writing to all Committee Members.

        b)     In relation to horizon scanning arrangements, the external auditors confirmed that regular meetings were held with senior officers, during which emerging issues and sector developments were discussed. It was noted that the report referenced sector-wide observations rather than being specific to Kent, but that appropriate engagement with officers was in place.

        c)     The auditors advised that SEND arrangements formed part of ongoing Value for Money work and it was not yet possible to provide definitive conclusions. The Member requested that this matter be revisited at a future meeting, including consideration of planning timetables and arrangements for addressing historic Safety Valve debt.

        d)     In relation to Local Government Reorganisation and asset condition, a Member raised concerns regarding the state of the Council’s estate and highways infrastructure and the implications for successor authorities. The auditors confirmed that discussions were taking place nationally regarding transition arrangements, disaggregation of services, and ensuring continuity of service delivery. It was noted that maintaining service delivery, including asset maintenance, formed a key part of these considerations.

        e)     The Committee discussed the Local Outcomes Framework and its implications for performance reporting. The auditors noted that the framework had been introduced recently and that current audit work was focused on existing arrangements. Future audits would consider how the Council aligned with new national metrics as arrangements developed. An officer undertook to provide a written response, including a mapping exercise between existing key performance indicators and new national metrics.

        f)      Further discussion took place regarding the scale and complexity of Local Government Reorganisation. The auditors advised that they had not yet reached a formal conclusion on the Council’s state of readiness. However, it was confirmed that officers were actively engaged in preparation work and were demonstrating awareness of the challenges involved. It was noted that this remained an evolving area and would be considered further through future audit work.

3)     RESOLVED Members noted the External Audit Progress Report for Kent

        County Council and the Kent Pension Fund.