Report of the External Auditor: Ernst & Young

Purpose: to inform the Committee of the conclusions of the 2015/16 Annual Audit.

Recommendation: That the Audit & Governance Committee considers and notes the report.

The Committee considered the report of the Council’s external auditors, Ernst & Young, which presented the conclusions of the 2015/16 Annual Audit.

Paul King, Ernst & Young, introduced the report and thanked the Head of Financial Services and his team for their help and support. He confirmed that the outstanding actions in relation to the Pension Liability Valuation and the Whole of Government Accounts had been completed.  He drew the Committee’s attention to the corrected audit differences as detailed in Appendix A and advised that these were not material considerations.

The Committee noted the report.

The External Auditors, Ernst and Young, have submitted their Audit Progress Report.

Purpose:

·         to provide the Committee with an overview of the progress made with the work needed to complete the 2015/16 audit.

·         to ensure that the audit is aligned with the Committee’s service expectations.

The Committee is asked to discuss this report and any other matters which members consider may influence the audit.

The Committee considered the report of the Council’s External Auditors, Ernst and Young, detailing the progress made with the work needed to complete the 2015/16 audit.

David Guest, Ernst and Young, presented the report.  In response to comments from the Chair he agreed that there was some degree of uncertainty regarding the new accounting policy on fair value measurement.

The Committee noted the report.

The External Auditor has submitted a letter setting out the audit and certification work and indicative fees for the 2016/17 financial year.

The Committee is asked to discuss and note this letter.

The Committee considered a letter from the External Auditor setting out the audit and certification work and indicative fees for the 2016/17 financial year.

The Committee agreed to note the letter.

Purpose: the Audit Plan sets out how Ernst & Young intend to carry out their responsibilities as auditor.

Recommendation: the Committee is asked to discuss the plan.

The Committee considered the report of the Council’s external auditors, Ernst & Young, setting out how they would carry out their responsibilities for the 2015-16 audit.

Paul King and David Guest, Ernst & Young, outlined the plan for the 2015-16 audit. They reported a reduction in fees from 2014/15 audit. They had not identified any significant risks in the council’s arrangements and no significant risks to the value for money assessment. The definition of ‘sustainable’ used related to financial stability for the continuation of an activity. Measuring social value (as in the Public Services (Social Value) Act 2012) was beyond the remit of the audit. Materiality was consistent with previous years (0.1% of the gross expenditure).

The Committee agreed the audit plan as set out.