Issue - meetings

The External Auditor, Ernst Young (EY) submitted a letter setting out the results and conclusions of the significant areas reviewed as part of the audit process.   Members were reminded that the detailed findings from the audit work in 2016/17 had already been reported to Performance, Audit and Governance Scrutiny Committee on 29 September 2017 when an unqualified audit report had been issued.  EY also submitted a letter summarising the certification work carried out in relation to the Council’s 2016/17 Housing benefit subsidy claim. 

The External Auditor provided a summary of the report and referred Members to the Executive Summary as detailed.  She confirmed that EY had concluded that the Council had put in place proper arrangements to secure value for money in the use of its resources.

Members sought assurances that the methodology of valuing assets was appropriate.  The External Auditor provided an overview of what protocols were used.  Some Members were concerned at the level of additional fees being charged for work which had delayed the audit process and which was the subject of negotiations with the External Auditor.

In response to a query from the Committee Chairman, the External Auditor provided a summary of what visits had been made by External Auditors in reviewing the Council’s accounts.  In response to a further query, the Head of Strategic Finance and Property explained that it was well prepared for the audit next year.

The Committee Chairman queried why the fees were so high.  The External Auditor explained the background to this and the steps to streamline the process.  The Head of Strategic Finance and Property explained that the fees were still the subject of further negotiation.

The External Auditor referred to the Certification Summary and the work undertaken by Revenues Staff on behalf of EY which had resulted in a reduction in the fee.  The Chairman, on behalf of Members, thanked revenues for their help in this process.

The Chairman, on behalf of Members, thanked the External Auditor for their report.

RESOLVED – that (A) the Annual Audit Letter be received; and

(B)   the report on the certification work for 2016/17 be noted.