Agenda item

Report by the Director of Finance and Support Services.

The Committee is asked to note the project plans for the County Council and Pension Fund accounts and consider progress to date.  The Committee is also asked to consider the draft accounting policies for both the County Council and Pension Fund accounts for 2022/23 and approve them for application in preparing this year’s accounts.

34.1     The Committee considered a report by the Director of Finance and Support Services (copy appended to the signed minutes).

34.2     Mrs Chuter introduced the report which was a regular paper to the March meeting of the committee for the West Sussex County Council and West Sussex Pension Fund Statements.

34.3     The current deadline for publishing the unaudited 2022/23 accounts was the end of May; with the audit deadline the end of September.  The timelines to meet the deadline had been laid out in the report.

34.4     Mrs Chuter reported that a consultation from the Department for Levelling Up, Housing and Communities (DLUHC) on the May deadline had just closed.  Mrs Chuter felt many councils would have raised concerns with the May deadline; with County Council officers responding that the end of June would be a better deadline.  The risk register reflected the current challenge of meeting the May deadline.

34.5     The Committee made comments including those that follow.

·         Raised concerns at the deadlines and asked when EY would begin their audit work.  – Mrs Chuter confirmed that officers were working to the legislative deadline which was achievable but challenging.  The ongoing work with the valuers would add a risk.  It was reported that a strong, experienced team were working on the statements to ensure deadlines were maintained to avoid any impact on the following year’s statements.  Mrs Eves, Director of Finance and Support Services, expressed the importance of hitting the deadline so that the County Council was high on EY’s list for auditing.

·         Queried the sequencing of when working papers were completed.  – Mrs Chuter confirmed that the working papers would be used in the preparation of the statements to substantiate numbers and it was typical that they were finalised after the statement publication due to the challenging deadline.

·         Requested details on the school bank reconciliation work.  – Mrs Chuter confirmed that this was a large piece of work to reconcile all the accounts.  It was hoped that Oracle would bring improvements in this area.  Mrs Chuter confirmed that there was always annual reconciliation work to complete.

·         Sought clarity over the Teachers’ Pension Scheme work.  – Mrs Chuter reported that it was unlikely all cases would be completed in time, however officers were currently working on batches.  The total number of cases has reduced from initial estimates where members were realised to no longer be in scope of the work.  An internal discussion would be considered if additional resourcing was required.

·         Noted the resourcing concerns for EY.  – Mrs Chuter confirmed that this was a national issue for audit and that EY considered the County Council an important client.  Mrs Eves reported on a letter from DLUHC which outlined all responsibilities and how Councils and Auditors should work together.  The lack of resources was acknowledged, and it was reported that more External Audit companies were entering the market.

·         Noted that the risks associated with the Smartcore project were significant as they would impact the whole Council.  – Mrs Eves acknowledged the risks and confirmed that the project was complex.  Smartcore had been discussed at a recent Performance and Finance Scrutiny Committee meeting, and would be discussed again at the June meeting.  The project was carefully considering all elements; which included resource requirements; migration and the impact on EY’s audit; and the production of accounts.  There was currently no go live date following the decision to delay the proposed 6 April launch.

·         Expressed the importance of involving staff in the Smartcore project who had detailed knowledge of the systems.  – Mrs Eves confirmed that key staff were involved in the project, and resources for the go live element had also been considered.  The ‘adopt versus adapt’ approach had been considered, as working with the product with as minimal adjustments as possible would ensure smoother implementation and maintenance.

·         Requested that the committee receive communication from officers on timelines when the deadline date is confirmed.

34.6     Resolved – That the Committee:

1)   Notes the project plans for the County Council and Pension Fund accounts and the progress to date.

2)   Approves the draft accounting policies for both the County Council and Pension Fund accounts for 2022/23 for application in preparing this year’s accounts.