Issue - meetings

The Executive Member for Finance submitted a report which set out the Council’s proposed response to the issues and recommendations raised in the Annual Audit Letter 2013/14. 

The Director of Finance and Support Service stated that, since the last meeting of Audit Committee, the Council had received an unqualified opinion on its 2013/14 financial statement from the External Auditor.  It was noted that no issues had been identified on the Annual Audit letter which had not been raised in the Audit Findings report.  Key recommendations made by the External Auditor for the Council were that it should:

·               consider taking out disclosures and notes to the Accounts which were no longer mandatory requirements under CIPFA’s Code of Practice;

·               review the Council’s approach to revaluating assets;

·               enhance and further develop the Medium Term Financial Plan (MTFP) to ensure that it was robust;

·               deliver a robust savings plan which addressed future budget gaps; and

·               ensure that reserves remained within the range set by Council policy.

The suggested response to the recommendations was set out in the report now submitted.

The Director of Finance and Support Services explained the timescales in relation to asset revaluations and assured Members that this approach was in line with other Councils.  She stated that if the Council was to revalue more frequently, then this could have resource implications. 

The Chairman commented on the Council’s levels of reserves and suggested that it should consider investing £1 million in the pension fund in line with a previous course of action.  The Director of Finance and Support Services stated that the level of reserves had been discussed by Corporate Management Team (CMT) and that there would be a report to Members on this issue, as part of the budget setting process.  She stated that any decision to invest in the pension fund had to be as a result of formal advice from actuaries based on a deficit in the pension fund, although the Council could seek additional advice from them and of the costs involved.

RESOLVED – that the Council’s response to the Annual Audit letter be agreed.