External auditors Grant Thornton issued a disclaimer of opinion on Medway Council’s 2025-26 financial statements — the fifth year in a row — and made two statutory recommendations on financial sustainability and governance that were considered by full council in October 2026.
Medway Council’s Audit Committee considered an interim audit findings report from external auditors Grant Thornton at its meeting on 29 October 2026, which confirmed that a disclaimer of opinion would be issued on the council’s financial statements for the year ended 31 March 2026.
The report stated that the outcome was consistent with findings for the 2021-22, 2022-23, 2023-24 and 2024-25 statements of accounts, in each of which a disclaimer of opinion was also issued — meaning the council has now received that outcome for five consecutive financial years.
Why a disclaimer was issued
The audit findings report set out in detail the reasons why auditors reached their conclusion. The council published its draft financial statements on 29 July 2026, a month after the statutory deadline and two months later than originally envisaged in the council’s own closing timetable. Officers acknowledged that in meeting the deadline for the 2024-25 draft statements there had been quality issues, and that further resourcing issues contributed to the delay in publishing the 2025-26 draft.
The backstop deadline for auditors to provide an opinion on the 2025-26 accounts is 31 January 2027. Grant Thornton was required to present its interim findings to the committee before that date. Officers said they would review the findings and provide management responses when the final report is presented to the committee on 26 January 2027.
Statutory recommendations and audit fees
Grant Thornton made two statutory recommendations relating to the council’s financial sustainability and governance arrangements. Those recommendations, together with management responses, were considered and approved by full council on 15 October 2026.
The core audit fee for 2025-26 was set by the Public Sector Audit Appointments body at £451,747. Officers noted that an adjustment to those fees may be required, to be agreed on a case-by-case basis.
What happens next
Officers said they would monitor the ongoing situation regarding local government reorganisation following the announcement of a pause on 7 September 2026, and would consider any relevant impacts as they arose. The final audit findings report is scheduled to come before the committee on 26 January 2027.
The council had not published the minutes of the meeting at the time of writing, so the committee’s decision is not yet on the public record.
Sources
- Medway Council — Audit Committee, 29 October 2026 (agenda and papers)
- Interim Audit Findings Report 2025/26 — report to Audit Committee (Medway Council)
- Appendix A: Interim Audit Findings Report 2025/26 — Grant Thornton (Medway Council)
Top image: illustrative, computer-generated. Illustrative AI-generated image. This is not a photograph of Medway Council or any real building.