Agenda item - External Audit- 2017/18 Audit Results report

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Agenda item

External Audit- 2017/18 Audit Results report

Report of Ernst & Young

Decision:

1)            That the Committee note the findings set out in the 2017/18 Audit Results Report

Minutes:

8.1         The Committee considered a report of Ernst & Young that summarised the findings of the 2017/18 audit and included key messages arising from the audit of the financial statements and the results of work undertaken to assess the council’s arrangements to secure value for money on its use of resources. Representatives from Ernst & Young stated that they were in a position to give an unqualified opinion of the council’s financial statements subject to full completion of outstanding areas of work. A unqualified opinion would be issued for the council’s value for money arrangements as Ernst & Young were satisfied that the council had put in place proper arrangements to secure economy, efficiency and effectiveness in its use of resources for the year ending 31 March 2018.

 

8.2         Councillor Sykes stated that there appeared a change in emphasis in EY’s conclusion on VFM arrangements and financial sustainability. In addition, Councillor Sykes noted that several different useable reserves figures had been used with each differing from the council’s own figures.

 

8.3         Paul King clarified that the conclusion was purely based upon an assessment of the arrangements the council had in place and there were a number of unknown factors that could still impact upon the council’s position. In relation to the figures used for useable reserves, they would most likely vary depending on the items included to reach that figure and any earmarked capital expenditure.

 

8.4         In relation to page 87 of the agenda, Councillor Cobb contended that the council was not achieving value for money as council tax levels were higher than other authorities and innovative thinking was required to deliver services more efficiently.

 

8.5         The Chair noted that investigation of the complaint made in relation to Lender Option Borrower Option (LOBO) loans had cost £26,000.

 

8.6         Paul King clarified that the investigation was very complex and it had been necessary to obtain legal advice on the matter and there was an obligation to follow due process in relation to the complaint.

 

8.7         The Chair noted that further work was required in relation to assurances from the auditor of the East Sussex Pension Fund and asked whether this meant the Statement of Accounts or Audit Results report or both could not be approved and signed at this stage.

 

8.8         Paul King clarified that the Audit Results report provided audit assurance and audit perspective and therefore the Statement of Accounts could be approved and signed.

 

8.9         RESOLVED- That the Committee note the findings set out in the 2017/18 Audit Results Report

Supporting documents:

 


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