Delays to Dorset Council external audit

The auditors investigation of the council’s 2019-20 figures have so far identified a £35m opening balance adjustment relating to assets which were transferred to the Bournemouth, Christchurch and Poole council and a number of misstatements in the collection fund.

In it debtors were over-stated by £99m and creditors by £114m which resulted in a movement from one part of the budget to another of £15m.

There has also been what was described as ‘a number’ of other adjustments in the draft financial statement.

Councillors heard that the auditors are also working through why eight fixed assets of the former West Dorset District Council had not been re-valued over five years although they should have been.

Although the figures are large they have no effect on budgeting and will result in most cases to a transfer, on paper, from one balance sheet to another.

Councillors on the audit and governance committee were told this week (Mond) that the audit had been complicated by the creation of two unitary councils across the county and disappearance of previous councils – made more difficult by auditors not being able to be at the council offices because of Covid restrictions, which had also delayed the process.

The council’s external auditors are expected to now make an additional charge, as yet unquantified,  to the fixed rate fee which had been agreed because of the additional work.

The 2019-20 audit had been expected to be completed in November but is now unlikely to be signed off until July 9th.

Executive director for corporate affairs Aidan Dunn said there were ‘lessons to be learned’ from the exercise which might benefit other councils planning to opt for unitary status.

Dorset Council is not the only authority to have gone so far into the financial year without having its external audit for the previous year not signed off. Up to 20 others across the country are said to be in a similar position.