Audit Committee minutes

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The Audit Committee met on 15 January 2026. p1

The Chief Finance Officer presented a report on the External Annual Audit Findings Report for 2024-25, covering the external auditors' opinion on the Statement of Accounts for the year ended 31 March 2025. p5

The plan is to issue the audit opinion by the statutory backstop date of 27 February 2026. p6

The committee noted the contents of the report and thanked the external auditors for their work. p7

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• p1Audit Committee — minutes of the meeting on 15/01/2026
• p524. External Annual Audit Findings Report 2024-25 The Chief Finance Officer introduced a report to update the Audit Committee on the outcome of the Annual Audit Findings Report for the year ended 31 st March 2025. Councillors were advised that the report related to the external auditors’ opinion on the Statement of Accounts, following the previously presented Value for Money audit report. The Chief Finance Officer noted that ordinarily, the audited accounts and external audit opinion would be presented together; however, this process had been delayed primarily due to the need for clarity on the council’s housing company. The Full Council decision to wind up the housing company has enabled officers to finalise the accounting entries and narratives required to complete the accounts. Ade Oyerinde thanked the council finance team for their work to date and acknowledged continued progress in strengthening financial assurance, while noting that further work remained outstanding, particularly in relation to the group accounts. Councillors were advised that improvements had been made compared to 2023/24, and that assurance over the accounts had continued to build. However, due to disclaimed audit opinions over the previous three years, sufficient assurance over opening balances had not yet been achieved. As a result, it was advised that the expected audit opinion would remain modified. Oliver Moore presented the draft audit findings for 2024/25, noting that last year’s audit resulted in a disclaimer of opinion due to significant weaknesses and delays. This year’s work focused on rebuilding assurance and improving the quality of the accounts. For 2024/25, most audit work was substantially completed by mid?January, though several areas remained outstanding due to the late submission of the draft accounts, well beyond the statutory 30 th June deadline. This delay extended audit work into January and prevented reporting to the December Audit Committee.
• p6The main unresolved risk relates to the planned winding?up of the Hastings Housing Company, creating uncertainty over group accounts and key accounting judgments. Despite these issues, auditors highlighted clear improvements in account quality, audit efficiency, and responsiveness, with most prior?year errors not recurring and most previous recommendations implemented. A modified disclaimer opinion is still expected, but external audit noted positive progress and encouraged continued improvement to return to normal audit timescales. Councillor Foster asked whether the audit certificate for 2024/25 must be issued by the statutory backstop date of 27 th February 2026, and what the implications would be if that deadline were missed. It was confirmed that the plan is to issue the audit opinion by the backstop date. While no formal penalties were identified for missing the backstop, it was noted that authorities failing to meet the deadline may be identified publicly. Councillor Bates asked how the council’s delays in publishing accounts compared with similar authorities, and whether the issues experienced were typical. The external auditors advised that across their portfolio of eight district councils, approximately 50% met the statutory 30 th June deadline, with the remainder missing it for various reasons. Hastings was the latest in that group to submit accounts, but this was attributed to specific local circumstances, particularly the housing company, and is considered a one?off rather than a general systemic issue. It was expected that, once those matters are fully resolved, the council should return to statutory timescales for 2025/26 and beyond. Improvements in response times and engagement from the finance team were noted, and it was confirmed that early planning discussions for the 2025/26 audit were already underway.
• p7In response to a question regarding investment in the finance team, the Chief Finance Officer confirmed that there has been a focus on developing existing staff, including professional and on the job training. Emphasis has been placed on strengthening corporate finance capacity to respond more effectively to external audit queries. There has also been the adoption of a business-partnering model with dedicated finance officers supporting services more strategically in budget setting and financial management. However, some recruitment challenges remain but increased support and skills development has improved engagement and responsiveness. The Chief Finance Officer thanked staff across the organisation for their work in responding to audit queries, noting that previous gaps in assurance had contributed to increased scrutiny. It was acknowledged that a constructive and collaborative partnership exists between the external audit team and council officers. Appreciation was also expressed to Grant Thornton for their work, with the audit process overall characterised as a shared endeavour and an increasingly positive team effort. RESOLVED (unanimously): 1. That the Audit Committee notes the contents of the report and recommendations 2. That the Audit Committee thanks the External Auditors for their work Reasons: Under International Standards of Audit (UK) (ISAs) and the National Audit Office (NAO) Code of Audit Practice (the ‘Code’), the Auditors are required to report whether, in their opinion the group and Authority's financial statements give a true and fair view of the financial position of the group and Authority the year. And confirm that they have been properly prepared in accordance with the CIPFA/LASAAC Code of Practice on Local Authority Accounting and prepared in accordance with the Local Audit and Accountability Act 2014.