Agenda item

This report provides the Audit & Governance Committee with the outcome and findings of the external audits of the 2023/24 financial statements of Hendeca Group Ltd, Surrey Choices Ltd, Halsey Garton Residential Ltd, Halsey Garton Property Ltd, and Surrey and Kent Commercial Services LLP (trading as Connect 2 Surrey).

Speakers:

Bill Harrow, Senior Finance Business Partner (Commercial)

Key points raised in the discussion:

1.    The Senior Finance Business Partner (Commercial)explained that each auditor for the subsidiaries provided unqualified audit reports, to be consolidated into the Council’s accounts. For each entity, external audit found management had appropriate procedures in place to prevent an override of internal controls, there was no indication of management bias or significant transactions outside the normal course of business, revenue was recognised correctly and there were no issues in the recoverability of debtors.

2.    A Committee member referred to the key audit findings regarding fixed assets additions, assets below £500 were being capitalised, the recommendation deemed the issue as not being resolved and he queried why. The Senior Finance Business Partner (Commercial) explained that concerned the Hendeca accounts, the Hendeca board and team had been advised not to capitalise those items going forward. That would be captured in the next audit and the items should go through the profit and loss account, not the balance sheet.

3.    The Chairman noted all the unqualified opinions and no material misstatements.

RESOLVED:

The Audit and Governance Committee considered the contents of the 2023/24 Audit Reports for the entities referred to above. The Financial Statements for each company were shared as background information.

Actions/further information to be provided:

None.