Agenda item

The Audit Wales Lead provided Members with a brief overview of the Audit Plan 2022 for Rhondda Cynon Taf Council. The document aimed to set out Audit Wales responsibilities and the requirements of the Auditor General for Wales for 2022.

Members were informed of the 2 main responsibilities of Audit Wales within the plan which covered auditing the Council’s financial statements annually and providing an opinion on their “truth and fairness”. 

The Audit Wales Lead continued by informing Members of the main audit risks which have been identified in relation to the financial statements. These included, management override and Members were informed that the risk of management override of controls is present in all entities and due to the unpredictable way in which such override could occur, this is viewed as a significant risk. The other risks identified were Covid funding, Asset valuations, Borrowings, City deal, Group Accounts and Related parties. Members were informed that these areas will be identified by Audit Wales as risks across a number of Welsh Local Authorities as part of the external audit of 2021/22 statement of accounts.

Specifically in relation to Group Accounts, the Audit Lead advised that there is a requirement for the Council to prepare Group Accounts for 2021/22 due to the construction of a Materials Recycling Facility by Cynon Valley Waste Disposal Company, for which the Council is the controlling party, and the resultant increase in the value of the property, plant and equipment held by the Company.

The Audit Lead advised Members that the risks identified will be the key focus for Audit Wales in addition to the work undertaken year on year.

The Audit Manager directed Members to Paragraph 15 of the report which provided an overview of the Performance Audit and the duties of Audit Wales in relation to the Audit Plan 2022. Members were informed of Audit Wales’ approach in relation to the Well-being of Future Generations (Wales) Act 2015. It was confirmed that Audit Wales are integrating their consideration of the extent to which Councils act in accordance with sustainable development principles within all of the audit work undertaken  and noted that the 2022/23 programme includes work that focusses on the setting of well-being objectives.

The Audit Manager directed Members to Exhibit 2 of the report; the table summarised the performance audit programme for 2022/23. Members were informed of the Assurance and Risk Assessment process work which is undertaken at all 22 Councils and will aid Audit Wales in undertaking risk assessments across a range of core arrangements, services and duties, and will inform the work areas that should be focused on.

The Audit Manager continued by informing Members of the key areas within the Performance Audit Programme for 2022/23. These included the Assurance and Risk Assessment work that will focus on the Council’s financial position, capital programme management and a thematic review of governance.  The Performance Audit Programme also included a thematic review of unscheduled care; Audit Wales intend to undertake a cross-sector review focussing on the flow of patients out of hospital and the review will consider how the Council is working with its partners to address the risks associated with the provision of social care to support hospital discharge. The Audit Manager added that the Performance Audit Programme also includes a thematic review of digital work and a bespoke local project focusing on the Council’s performance dashboard.

The Audit Manager directed Members to paragraph 30 of the report which covered the audit fee. It was advised that the audit fee for Rhondda Cynon Taf Council has increased this year by 3.7%, as set out exhibit 3 of the report.

Lastly the Audit Manager directed Members to exhibit 5 of the report which set out the audit timetable for the work which will be undertaken by Audit Wales. It was advised that further updates will be provided to Members regarding the progress of the performance work programme during the year.

Mr M Jehu requested further details on the timescales for the thematic review of unscheduled care. The Audit Manager advised that a project brief will be released to the Local Authority that will provide the scope and detail on the timescales later in the year.

A Member supported Mr Jehu’s enquiry and noted the importance for the Committee to receive the project brief in light of the current workforce challenges within the Health and Social Care sector.

A Member enquired around the fee increase and whether this would impact on future costs. The Audit Manager advised that the fees are an estimate based on a number of assumptions and will be updated, as appropriate, to reflect actual costs at year-end.

Mr M Jehu enquired around any legal implications on the Council if well-being objectives are not achieved in a timely manner. The Audit Manager advised that the Council already has well-being objectives and processes are in place to report and scrutinise progress.

Following discussion, the Governance and Audit Committee RESOLVED to note the content of the report.