Issue - meetings

Ernst and Young’s (EY) representatives briefly explained the main points of the audit letter. Suresh Patel (EY) said that external audit fees had now been agreed and would be presented to Public Sector Audit Appointments (PSAA) for final approval. There were some changes to the requirements for external auditors, which would necessitate a variation in the format of future audits. Members would in future receive more narrative reporting around the value for money conclusion that the external auditor is required to report on annually under the Code of Audit Practice.

Members were also advised that the Ministry of Housing, Communities and Local Government (MHCLG) had proposed new audit date deadlines which EY perceived to be unrealistic and they intended to respond to this effect.

The Chairman asked whether EY had made any changes to allow them to adhere to deadlines more easily. He also asked about its workload and whether this had been increased by the new requirements for auditors.

EY’s representative said it had recruited a number of junior staff, but it would take some time for them to be trained. There was additional work, which had been flagged to PSAA, and EY also had a backlog of audits to clear.

RESOLVED – that the report be received.