Decision details

Paul Dossett, Partner, Grant Thornton presented the updated Lancashire County Council Audit Findings Report 2019/20, for the year ending 31 March 2020. The updated report gave an overview of progress made and the reason for the delay in issuing the audit opinion.

It was noted that the Financial Reporting Council, responsible for the regulation of auditors, had increased the scrutiny required of local government audits, in response to failures noted within the corporate audit sector. This enhanced scrutiny necessitated an increase in audit requirements related to financial instruments. The report set out the issue encountered regarding the valuation of Lender Option Borrower Option (LOBO) long term investments, whereby a more detailed review was required. External and internal advice had been sought and the issue was close to being finalised.  This was the only item outstanding that was preventing the signing of the audit.

In response to a question it was clarified that the initial assessments of the valuations had now been received and were awaiting further evaluation. Completion was anticipated this week.

Resolved: That the updated position of the 2019/20 Lancashire County Council Audit report and issues raised by the auditor, as presented, be noted.