Agenda item

The Committee will receive a report from the External Auditor providing an overview of the planned scope and timing of the statutory audit of the Council.

The Committee received a report from the External Auditor providing an overview of the planned scope and timing of the statutory audit of the Council.

It was noted that the Council was required to prepare group financial statements that consolidated the financial information for Bernesali Homes.

In relation to significant risks, the External Auditor would communicate any significant findings in relation to Management override of control, Valuation of the Pension Fund Liability and Valuation of land and buildings as well as other significant matters arising from the audit in their Audit Findings Report in july, 2019.

The planning materiality had been determined to be £10m for the Group and £9.9m for the Council’s single entity statements which equated to 1.8% of the gross expenditure on the cost of services in the previous year.  They would also continue to report uncorrected omissions and misstatements.

Significant Value for Money risks had been identified and this was a key area of focus given the significant financial pressures facing the authority as well as the Glass Woks development which was one of the largest projects undertaken by the Council.

The Interim visit would take place in February, 2019 with the final accounts being presented in June and July.   Initial meetings had already taken place with the Service Director Finance and with staff from the Finance Team.  The key deliverables were outlined in the Audit Plan and the Audit Findings report and the fee had been set at £104,718 (a reduction from £135,998 in the previous year) but was subject to the Council meeting their requirements.

In response to specific questioning the External Auditor explained the process for finalising reports.  Meetings were arranged with appropriate staff and any issued discussed prior to publication.

RESOLVED that the External Audit Plan 2018/19 be noted and, insofar as this Committee is concerned, the action to be taken be supported.