Agenda item - Ernst & Young: Audit Plan 2016-17

Report of Ernst & young (copy attached).

1)            That the Audit & Standards Committee note the 2016/17 Audit Plan

62.1      The Committee considered a report of Ernst & Young that set out the 2016/17 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.

62.2      Dr Horne asked of the Audit Plan could include an assessment of the Council’s track record in delivering savings in 2016/17 and in the mid-term.

62.3      Paul King, External Audit Director, confirmed this would be part of the information gathered by Ernst & Young in their audit.

62.4      Councillor Morris asked for further clarification on the statement that the Property, Plant & Equipment (PPE) balance could be materially misstated in 2016/17.

62.5      Paul King, External Audit Director, answered that due to the high monetary values associated with PPE, it took little to lead to a large increase or decrease in valuation. The statement also related to the challenge made to the Council on the value of PPE in its draft financial statement and the fact there were a number of recommendations made by Ernst & Young to the Council in 2015/16 in relation to this issue.

62.6      Councillor Sykes asked if there could be an analysis of the Council’s use of capital within the Plan.

62.7      Paul King, External Audit Director, clarified that Ernst & Young always reviewed the way transactions were accounted for and any associated risk and this would cover capital spend.

62.8      RESOLVED- That the Audit & Standards Committee note the 2016/17 Audit Plan