Issue - meetings

The External Auditor submitted a report on the Audit Plan which set out how the External Auditors intended to carry out their responsibilities; the proposed audit approach and scope for the 2019/20 audit against accountings requirements; and legislation to ensure that the audit was aligned both with the Council’s service expectations and also the need to take account of the ongoing situation regarding Covid-19.

The External Auditor provided a summary of the report in terms of:

·               An overview of the 2019/20 audit strategy;

·               Audit risks;

·               Value for money risks;

·               Audit Materiality;

·               Scope of the audit;

·               Audit Team and timeline;

·               Independence and appendices.

The External Auditor referred Members to page 37 of the report for an overview and to page 38 for a number of new areas of focus including group accounting and the implementation of new auditing and accounting standards.  He said that the External Auditor had identified a significant value for money conclusion risk in relation to the Council’s capital programme.   The External Auditor referred in particular to the management and delivery of the programme into 2021 and drew Members’ attention to section 3 for further details of this risk and an outline of the planned procedure the External Auditors would use to form a value for money conclusion.

The External Auditor concluded his submission by referring to the impacts of Covid-19 on assets and valuations.  He said that he was confident that EY could adhere to the timelines for delivering the Audit.

The External Auditor confirmed to Councillor Corpe that there would be a discussion with the Head of Strategic Finance and Property in respect of arbitration over the Audit Fees.

Councillor Stowe commented on the risks associated with Millstream, the Council’s property company.  The Head of Strategic Finance and Property said that this was a low level risk as the investment was backed by assets. The holding of rental property was not a high level risk to the Authority.

The Head of Strategic Finance and Property assured the Committee that the risk register had been updated.  Councillor M Pope proposed and Councillor S Bull seconded, a motion that the report be received. 

After being put to the meeting and a vote taken, this motion was declared CARRIED.  Members received the report.

RESOLVED - that the report be received.