Letter from: the external auditor, Ernst & Young

Purpose of letter: to set out the audit Ernst & Young intend to undertake in 2018/19 and the expected fees.

Recommendation: to discuss and agree the letter and the fees.

The Committee considered the report of the external auditor Ernst & Young setting out the scope of the audit they intend to undertake in 2018/19 and the expected fees.

David Guest, external auditor, reported:

·         the Council had joined the national scheme for procuring audit services Public Sector Audit Appointments Ltd (PSAA) for audits of the 2018/19 to 2022/23 accounts.

·         Ernst & Young were appointed via this scheme and would be providing the same service with a reduction in expected fees: however the fee depended on a number of factors including officers also meeting their timetable.

·         an increased fee may be necessary to cover the increased work created by the inclusion in the Council’s accounts of the audited accounts for the Council’s companies. These created complexities around consolidating accounts and lowered the level of financial materiality (significance)

·         Ernst & Young had signed a separate contract to undertake the annual Housing Benefit subsidy claim certification as this did not fall under the PSAA contract.

The Committee noted the contents of the letter and the indicative fees.