Issue - meetings

The Executive Member for Financial Sustainability presented the Statutory Recommendations from the External Auditors and said that the auditors had issued a disclaimer for both years. The report said that the Council had failed to complete the draft financial statement in the required timeframe and had issued three statutory recommendations.

The Executive Member for Financial Sustainability said that the council and the Leadership Team were committed to addressing the recommendations in the report and reaffirmed the commitment to sound financial management and effective governance. The Audit and Governance Committee would receive updates and progress on a regular basis.

Councillor Brittain proposed that the recommendations in the report be supported. Councillor Wilson seconded the proposal.

Councillor Williamson said it was reassuring that the council were taking on board the points raised. He said that it was important to make the point that Ernst & Young had not been performing as expected, not just with East Herts but across the country. He hoped the council could move forward with the new auditors in future.

Councillor E Buckmaster said that it sounded like Ernst & Young had been standing back throughout the process but was pleased to have the assurance that the recommendations were underway.

Councillor Brittain confirmed that these recommendations were being taken seriously with a view to improving. He said that the council now had new auditors and a new Section 151 officer, so he looked forward to a much better relationship and more successful audits moving forward.

Councillor Wyllie referred to paragraph 2.1 and the national backlog of opinions. He said their backlog meant the council had not published their accounts which, to residents, might look suspicious. He asked if the council would be asking the auditors for compensation for their failure and the additional officer time involved.

Councillor Brittain said he was not aware of any claim being submitted.

Councillor Deering said he echoed the comments of others. He said that the conduct of Ernst & Young across local government had been appalling. He hoped that the new auditors could work with a clean slate and get things back on track.

Councillor Wilson said that there was a bigger problem across the whole of local government with  getting audits completed. He said it was important that the public recognised what had happened. He said there was great value in external scrutiny and hoped the new government would get plans in place for auditing promptly.

The motion to support the recommendations having been proposed and seconded was put to the meeting and upon a vote being taken, was declared CARRIED.

RESOLVED – that (A) Council considers / accepts the   recommendations made by the External Auditor within Appendix A.

(B)  Agree that the Audit and Governance Committee receives updates on progress against the recommendations and actions within this report on a regular basis.