Rother District Council faces significant financial challenges but has “robust” plans in place, councillors have heard.
The topic was discussed at a meeting of the council’s audit and standards committee on Wednesday (July 28), where councillors heard from external auditors Grant Thornton about its plan for the 2020/21 audit.
In a report, Grant Thornton had warned that the council faces ‘very significant financial challenges’ in the coming years, with the authority using its reserves to balance its budgets.
However, the auditor also said it does not currently consider the council to have any significant value for money weaknesses as a result of its ‘robust’ financial planning processes.
Trevor Greenlee, an audit manager from Grant Thornton, said: “We’ve concluded that you don’t currently, in our view, have any significant weaknesses.
“We’ve thought about your financial position and your financial sustainability, but we’re looking at the 2020/21 year. We’ve looked ahead at your medium term [financial] plan and you’ve obviously got some significant pressures there, but at the same time you’ve quite a robust planning framework.
“You update that regularly and have clear approach to budgeting and financial planning, so we decided that at this point the situation doesn’t require a statement of significant weakness, but it is a scenario where we have to have a greater understanding.
“It is possible of course as we go through the work, either in that area or any other area, we might identify something that we consider was a significant weakness and then that is what we would report.”
Grant Thornton currently expects to complete its work on the 2020/21 audit by November this year.
As part of this work, the auditor has identified a number of ‘significant risks’ which require special attention. However, it says these are standard, rather than specific concerns for Rother.
Mr Greenlee said:
“The significant risks we have identified for Rother are all the risks we have identified for local authorities generally.
“So essentially we focus our work on the largest items, the items which have significant estimations. That is things like the valuation of your property assets and valuation of your net pensions liability.
“There is nothing specific to Rother, no concern on any particular issue which is driving us to have a risk-focused specific.
“One thing that is different this year, but again is common across authorities, is we have identified a risk around the accounting for covid grants.”
New Bathing Water Sites Approved In Worthing
Renowned Sussex Band Donates To KSS Helicopter Appeal
Adam Lallana To Leave Albion At End Of Season.
Update On Investigation Into Fatal Collision Near Petworth
Mental Health Awareness Week: Free Health Walks In Brighton & Hove
Lewes Prison Under Pressure As Penal Reform Charity Responds To Latest Report
PHOTOS: Ed Sheeran Makes Surprise Visit To Brighton School
Hove Bar Licence Reviewed After Years Of Complaints
Record Number Of Wild Swimming Spots Designated As Bathing Sites - With Three More In Sussex
Council Calls On West Sussex Residents To Consider Fostering