Issue - meetings

This report sets out the approach being taken by the Council’s external auditors, Grant Thornton, to the audit of the accounts for 2017/18.

The Committee received a report setting out the approach being taken by the Council’s External Auditor (Grant Thornton) to the audit of the accounts for 2017/18. The following matters were considered:

a)            Appointment of External Auditor. The Committee noted that the External Auditor for the Council was appointed by Public Sector Audit Appointments, a national body. There were 5 years (2018/19 to 2022/23) remaining on the External Auditor’s contract.

b)            External audit of Epsom & Ewell Property Investment Company (EEPIC). The Committee noted that the Council’s subsidiary property investment company EEPIC had a separate external auditor, Williams & Co. Elements of EEPIC’s final accounts would also be inspected by Grant Thornton in the course of its duties for the Council.

c)            Clarification of funding of EEPIC. Following a question from the Chairman, the Chief Accountant informed the Committee that the information on page 11 of the External Auditor’s report regarding the Council’s funding of EEPIC could be clarified. The Chief Accountant clarified the Auditor’s statement by informing the Committee that the Council had funded the investment in the wholly owned Company through its Commercial Property Acquisition Fund, which had been established and earmarked for this specific purpose by full Council in September 2017. The fund was typically backed by external borrowing, although the Council could use any surplus cashflows to reduce the actual level of borrowing as part of its Treasury Management Strategy. There was no impact on the Council’s strategic earmarked reserves.

Following consideration, the Committee:

(1)          Agreed to endorse the External Audit Plan.