Agenda item

Report of External Auditors, BDO LLP.

Members received the reports of the External Auditors, BDO, in respect of Audit Planning for the year ended 31 March 2021 for Bridge House Estates; City Fund; City’s Cash and Sundry Trusts; and the Pension Fund. The following points were noted:

a)    Bridge House Estates

BDO emphasised that BHE was an unincorporated charity and assets were used as a starting point for the materiality, given the relative size of the balance sheet in comparison to the income statement.

b)    City Fund
There was a risk that the audit would not be completed by the end of September deadline set by the Ministry of Housing, Communities and Local Government (MHCLG). The deadline had been extended in 2020 due to the pandemic, however the MHCLG had not granted the same flexibility with deadlines for 2021. BDO was making representations to the MHCLG for an extension. This was an issue with all firms in local government market.

There had been increased communication from the Chamberlain’s regarding related party transactions as well as more regular escalation routes when Members had not responded in expected timescales.

c)    City’s Cash and Sundry Trusts
Non-statutory audit as it is a fund, rather than a company or charity, and comprises a number of the City’s activities including Open Spaces and Thames and Barking Power Stations.

d)    Pension Fund
BDO would update the Committee at a later date on any changes to the risk profile.

The Chairman wished to place on record the Committee’s thanks to Jeremy Mullins in the Chamberlain’s Department who was retiring after 42 years of service to auditing in Local Government and over 18 years with the Corporation. 

The Deputy Chairman of Finance wished Leigh-Lloyd Thomas all the best in his retirement from BDO and thanked him for his service to the Corporation.

The Chairman of Finance wished the Chamberlain all the best for his retirement and thanked him for his work with the Committee.

RESOLVED, that the audit planning reports be received and their contents noted.