Issue - meetings

The External Auditor submitted a report summarising the Audit Plan and the approach proposed by the External Auditors in carrying out their responsibilities. 

The report explained the proposed audit approach in accordance with statute and professional requirements and in relation to the Committee’s and service expectations.  The Audit Plan provided a summary of the External Auditor’s initial assessment of the key risks and the strategy to address those risks.  The External Auditor commented that specialist advice was sought when needed and that their role was to ensure that value for money was achieved and to confirm that sound arrangements were in place.

The report was debated at length.  Members sought and were provided with clarification on a number of issues, including:

·                  the valuation of assets and the assumptions made;

·                  Old River Lane – valuation of asset;

·                  changed deadlines in relation to the finalisation of the accounts;

·                  time spent on site by the External Auditors and number of return visits made.

·                  value for money arrangements and value for money risks (including those in relation to the Old River Lane plans and the establishment of a property company, and those in relation to a long term leisure company; and

·                  materiality set at 2% of the Council’s prior gross expenditure and why it had been set at this figure.

The External Auditor explained the various stages involved in an audit, what could be included and the proposed timeframes for a review.  This included:

·                  Income and expenditure;

·                  Property, Plant and Equipment (PPE) additions;

·                  Exit packages;

·                  Grant information;

·                  Contracts;

·                  Leases; and

·                  Housing benefits.

It was noted that timescales would be the subject of discussion with the Head of Strategic Finance and Property.

Members supported the level of materiality (2%) suggested by the External Auditor and noted the report.

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

RESOLVED – that (A) the report be noted; and

(B)   the level of materiality set by the External Auditor at 2%, be supported.