Agenda item - Ernst & Young: 2015/16 Audit Plan

Report of Ernst & Young (copy attached).

1)            That the 2015/16 Audit Plan be noted.

2)            That the committee notes the LG sector briefing.

79.1      The Committee considered a report of Ernst & Young that set out the 2015/16 Audit Plan detailing the work intended to be carried out in line with their responsibilities as the council’s external auditor. The report summarised the progress to date, an assessment of the key risks which drive the development of an effective audit and outlined Ernst & Young’s planned audit strategy in response to those. Furthermore, the report included a Local Government Sector Briefing summarising some of the issues facing the sector as a whole.

79.2      The Chair asked for an opinion from Ernst & Young on whether they felt the council was meeting its expectations on Value for Money (VfM). The Chair noted that whilst she welcomed a reduction in fees from the external auditors, she hoped this was not due to a reduction in service.

79.3      Paul King stated there would be no reduction in service and the fee reduction was a reflection of the change in contractual arrangements related to the abolition of the Audit Commission. In relation to VfM, the report findings would review the council’s arrangements to this regard rather than an analysis of the servicing of VfM.

79.4      Councillor Druitt asked for further information regarding the changes to the audit fee relating to the abolition Audit Commission.

79.5      Paul King explained that some functions of the Audit Commission and been retained where it was found retention had continuing value. Areas where this was not the case had been discontinued meaning a drop in fees relating to that work.

79.6      Dr Horne stated that it would be useful for the committee to receive an update to its meeting in June on the VfM programme and pension scheme. Dr Horne enquired as to why there would be no update on Grant Claims Work until the meeting in September.

79.7      Paul King stated that the update report in June would give as much detail as possible as to work carried out up to that point. Grant Claims Work would be provided in September as the bulk of the work necessary would not be completed in time for the June meeting.

79.8      RESOLVED-

1)            That the 2015/16 Audit Plan be noted.

2)            That the committee notes the Local Government sector briefing.