Training Item - Local Government Audit Update
Minutes:
A presentation was given by the External Auditor on a Local Government Audit Update. The briefing looked at:
· the impact of the UK’s decision to leave the European Union;
· changes to off-payroll working;
· potential review of process for reporting election results;
· the need to minimise revenue spend on debt servicing and maximise revenue spend on assets;
· changes to the timescales for the preparation of accounts and auditing and the potential challenges of earlier deadlines.
The Chairman referred to Brexit and the impact this might have on government funding. He also referred to the Council’s assets and volatility in relation to its pension liability.
The External Auditor referred to the risks that some Councils could face in relation to Brexit and funding streams. She stated that Revenue Support Grant was continually declining and the New Homes Bonus could disappear. She also spoke of the challenges Councils faced in preparing their Medium Term Financial Plans (MTFPs) in the face of uncertainty in relation to grant funding. The External Auditor commented that to mitigate these uncertainties, many Councils were adopting a more commercial approach to generate funding. The External Auditor confirmed that volatility would affect the Council’s assets and movements and also in terms of pension figures.
The changing timescales for the production of the Council’s accounts was debated at length. The Head of Strategic Finance and Property commented that they were working closely with the External Auditor to ensure that information was submitted in a timely manner. He reminded Members that the tri-annual review of pensions was being undertaken and that confirmation of this review was awaited from Hertfordshire County Council. He stated that a report on the Pension Fund would be presented to Corporate Business Scrutiny Committee in October 2016.
The Chairman, on behalf of Members, thanked the External Auditor for the presentation.
RESOLVED – that the presentation be received.