Issue - meetings

The External Auditor submitted a report setting out its results and conclusions following completion of audit procedures for the year ended 31 March 2016.  The Annual Audit Letter set out any key issues which had arisen from the External Auditor’s work.  She explained that the audit fee had been varied in the sum of £771 in order to address some additional work in reaching their Value for Money conclusion.

The External Auditor provided an overview of the report stating that there were no significant risks identified in relation to the Financial Statement Audit.  Three key issues had been identified in relation to management override of controls, revenue and expenditure recognition and the purchase of Old River Lane, but that having performed procedures outlined in the External Audit Plan, the External Auditors had concluded that the Council had adequate arrangements in place and had issued an unqualified opinion. 

The External Auditor explained that in considering their Value for Money conclusion three significant issues had been identified and considered; achievement of savings over the medium term, arrangements for procuring supplies and services and the governance arrangements for the purchase of Old River Lane.  Having performed procedures outlined in the External Audit Plan, the External Auditors concluded that the Council had adequate arrangements in place and issued an unqualified opinion. 

The Annual Audit Letter reviewed the impact of the EU Referendum on financial markets in terms of heightened levels of volatility.  The External Auditor also referred to the final Audit Fees incurred for 2015/16.

It was noted that the Annual Audit Letter confirmed that the Council had received an unqualified opinion on both its financial statements for the year ended 2015/16 and for the value for money conclusion on 30 September 2016.

The Head of Strategic Finance and Property assured Members that new software would be in place by September 2017 in relation to procurement so that information would be held in one place.  The Chairman sought and was provided with advice on the impact of Brexit on the Council’s revenue streams.  The External Auditor explained that those who were at risk were companies who received a lot of EU funding but that the Council needed to keep up to date with the challenges as they emerged.

In response to a query from the Chairman, the Head of Strategic Finance and Property confirmed that Rural Development Funding had been guaranteed by the Government.

The Committee received the Annual Audit Letter for the year ended 31 March 2016.

RESOLVED – that the Annual Audit Letter for the year ended 31 March 2016 be received.