Naomi Povey, Grant Thornton UK LLP introduced the report of the Director of Resources, which provided the Committee with the External Audit Plan, undertaken by Grant Thornton UK LLP as the Council’s appointed independent external auditors and as part of the statutory audit of Wirral Council.

The report detailed the key matters for the external audit report, where it was acknowledged that the Council was facing significant financial challenges, therefore the focus of the Value for Money work was on the financial sustainability of the Council. A further area of focus was the group of companies that the Council had established, where the deficit position of Edsential was noted. The report also listed the significant risks that required special audit consideration and procedures, the main risk being the recognition of the additional Covid-19 grant income and expenditure. Members’ attention was also brought to the progress made against prior year audit recommendations, and the external auditors’ assessment of these.

Members discussed the costs associated with undertaking the external audit and it was confirmed that the cost had increased due to the increased work required to gain assurance as part of the financial pressures the Council was facing including the capitalisation directive.

Resolved – That

1)  it be agreed that the arrangements set out within the Audit Plan meet the Committee’s expectations in providing independent scrutiny.

2)  the report be noted.