Agenda item

The External Auditor will present the Annual Audit Fee Letter for 2016/17.

Ms L Wild, representing KPMG, presented the External Auditor’s Annual Fee Letter for 2016/17

The audit work and fee proposed was based on the risk based approach to audit planning as set out in the Code of Audit Practice and Public Sector Audit Appointments Ltd’s published work programme and scales.

The fees were detailed within the letter together with a comparison to the fees for 2015/16 and an explanation of:

·         the way in which fees had been calculated.  It was noted that the Code of Audit Practice and audit fee was the same as the previous year (£135,998) with a slight increase in the fees for the certification of the Housing Benefit Grant Claim (£22,118 – an increase from £15,236).  It was reported that as KPMG had not completed the audit for 2015/16 the audit planning process for 2016/17, including the risk assessment, would continue as the year progressed and fees reviewed and updated as necessary

·         the redistribution of the Audit Commission Surplus – which was likely to be 15% of the scale fee

·         the factors affecting audit work for 2016/17

·         the certification work to be undertaken

·         the assumptions made which have let to the assessment of the feels details of which were outlined within Appendix 1 to the letter

Further appendices to the letter provided details of the planned outputs with the indicative date for completion together with KPMG’s  the statement of independence.

RESOLVED that the Annual Audit Fee Letter for 2016/17 be received and the potential implications of the issues identified therein be noted.