Issue - meetings

The External Auditor submitted a report which set out how they intended to carry out their responsibilities as the external auditor.  The report provided a basis on which to review the proposed audit approach and the scope for the 2016/17 audit in accordance with the requirements of the Local Audit and Accountability Act 2014, the National Audit Office’s 2015 Code of Audit Practice and the Statement of Responsibilities issued by the Public Sector Audit Appointments (PSAA) Ltd and other professional requirements.

The External Auditor referred to the valuation of property assets with particular reference to Old River Lane, Bishop’s Stortford.  Members were reminded that the valuation of property assets was a significant accounting estimate that had a material impact on the financial statements.  The valuation of property assets had to be accurate and categorised correctly in the financial assessments.

The External Auditor highlighted the risks of management override and commented on changes to the CIPFA code regarding income and expenditure statements.  Regarding the value for money conclusion, the External Auditor stressed the importance of good governance as well as following internal processes.

The External Auditor advised that they had determined that overall materiality for the financial statements of the Council was £1.743m based on 2% of Gross Expenditure.  The Auditors would communicate uncorrected audit misstatements greater than £87,000 to the Authority.  The fees detailed on page 30 of the report submitted were set by the PSAA.

The External Auditor and the Head of Strategic Finance responded to a number of queries from the Chairman and Committee Members.  Councillor M Casey commented on the tendering process for the appointment of the External Auditors.  He was advised that the PSAA handled the allocations of Authorities to the various External Auditors and the fees might change up or down from one year to the next. 

The Committee noted the report.

RESOLVED – that the External Auditor’s approach for 2016/17, be noted.