Agenda item

The Committee will receive the External Audit Technical Update which incorporates the External Audit Progress Report.

Ms A Warner (KPMG) presented the Technical Update and External Audit progress report.

The Committee was informed that work had started on interim audit work and details were outlined.  Any issues identified would be discussed with management and would be reported to the July meeting.

Detailed planning had been undertaken to determine whether or not there were any significant risks to the opinion on the arrangements to deliver Value for Money.  Although there were a number of significant issues and pressures facing the Council, following this planning work no issues had been identified.  A further report including work on Housing Benefits would be submitted in September/October

Work had also started on planning work required in relation to the Certification of claims and returns.

An appendix to the report gave details of the 2016/17 deliverables together with the timing and status of those deliverables.

The report then went on to give details of KPMG resources and recent technical developments.

There was a discussion of the paper circulated following the previous meeting on the need for Council’s to achieve a cultural shift by 2020 as revenue streams were reduced and reliance on business rates became more important.  Questions were asked as to the potential implications of this for both the Council and for External Audit.  Ms Warner was not able to comment on this but would give an update to a future meeting.  Arising out of this, the Service Director Finance commented on the development of a Commercial Strategy within the context of Value for Money, procurement, income generation and the change of culture of the organisation.   Discussions were ongoing within the Senior Management Team and investigations were progressing on how to take such a strategy forward.

The Executive Director Core Services commented that one of the elements the Authority had to consider was the change in risk appetite.  Some Councils were, for example, purchasing commercial properties as rental yields were attractive.  This could, however, pose a potential issue in the event of a change in the economic climate.

RESOLVED that the External Audit progress report, resources and technical update be noted.