Statement on EY Audit of Combined Authority’s 2022/23 Accounts

This means that EY was unable to reach an opinion on the Authority’s accounts. The reason for this is not to do with any issues identified in the Authority’s accounts, or its commitment to the audit process, instead it relates to a well-documented backlog of external audits across the sector in recent years.  

These delays prompted the Government to introduce new legislation setting strict ‘backstop’ deadlines for external audit completion, aiming to clear the national backlog and return to timely reporting in future years.  When publishing its decision, the Government specified that: “Local bodies should not be unfairly judged based on disclaimed or modified opinions, caused by the introduction of backstop dates that are largely beyond their control”. 

For the 2022/23 accounts, the backstop deadline set by the Government is 13 December 2024. Due to the wider backlog and the prioritisation of the 2023/24 accounts, EY is unable to form a detailed opinion on the accounts in time for 2022/23.  This does not reflect shortcomings in the Combined Authority’s financial governance or processes. The 2022/23 accounts were published in draft form on 31 July 2023 and have been available for public review since that time. 

Looking ahead, good progress has already been made on the 2023/24 audit, which EY expects to finalise early next year ahead of the backstop date of 28 February 2025. By addressing the backlog and focusing efforts on the most recent accounts, the aim is to ensure timely reporting for all future years. 

Rob Bridge, Chief Executive of the Combined Authority, said: “Unfortunately we are one of hundreds of public bodies affected by the national audit backlog. I want to reassure people that the fact there is a disclaimed opinion on the 2022/23 accounts reflects this broader issue and does not suggest any concern in relation to the Combined Authority’s financial governance or performance.” 

“Our focus remains on the continued improvement of the Combined Authority including maintaining robust financial management and supporting a smooth audit process.”