Issue - meetings

This report presents the external auditor’s Annual Audit Letter for the year ended 31 March 2019 and the latest Progress Report. In accordance with Audit Regulations, both items must be received by this Committee.

Following consideration, it was resolved that:

The Committee:

(1)      received the Annual Audit Letter for the year 2018/19 (Annex 1 to the report)

(2)      received the External Audit Progress Report  for the year 2019/20 (Annex 2 to the report)

The Committee received a report presenting the external auditor’s Annual Audit Letter for the year ended 31 March 2019 and the latest Progress Report.

The External Auditor was in attendance at the meeting and introduced the Annual Audit letter and Progress report.

The following matters were considered:

a)            Accounts Audit Plan. Following a question from a Member, the External Auditor informed the Committee that a detailed Accounts Audit Plan would be presented to the Committee’s meeting in March 2020 rather than January 2020, due to a clash of date.

b)            Proposed fee variations. The Committee noted that the External Auditor’s Annual Audit Letter proposed a fee variation of an additional £4,000 in relation to work undertaken on the Council’s pension liability following the McCloud ruling, and on the Council’s non-current assets portfolio. Members of the Committee queried why this work was not covered by the External Audit fees for 2018/19 as set by Public Sector Audit Appointments Limited (PSAA). It was noted that proposed fee variations had been referred to PSAA for decision as to whether they were payable by the Council.

c)            Materiality. The Committee was informed that the External Auditor had determined the materiality for the audit of financial statements to be 2% of gross revenue. The External Auditor informed the Committee this was the largest percentage they were able to apply, and that a large percentage indicated a low risk.

Following consideration, it was resolved that:

The Committee:

(1)      received the Annual Audit Letter for the year 2018/19 (Annex 1 to the report)

(2)      received the External Audit Progress Report  for the year 2019/20 (Annex 2 to the report)