Issue - meetings

This report will also be going to the Audit Sub-Committee meeting on 15^th December 2011.

Report CEO 1188

The Executive received the Annual Audit Letter which provided a high level summary of the results of the 2010/11 audit work that had been undertaken.  The report would also be submitted to the Audit Sub-Committee for consideration at its meeting the following evening.

The Finance Director commented on the changes to the Accounting requirements under the International Financial Reporting Standards (IFRS) during 2010/11 which increased the complexity of the process and had meant producing double the amount of supporting notes.  It was pleasing that no concerns had been raised by the Auditors and that an unqualified value for money conclusion had been issued.  The Resources Portfolio Holder also spoke of the extra work undertaken by the staff and the good practice standards achieved and the Executive asked for its appreciation to be passed on to all those involved.

The Chairman drew attention to the summary of recommendations and proposed that a report be done through the Executive and Resources PDS Committee on testing the Council’s disaster recovery plans in the event of a major disaster at the Civic Centre.  Councillor Bosshard agreed that this be added to the Committee’s work programme.

RESOLVED that the Annual Audit report be noted. 

(Please note that this report will also be considered by the Audit Sub-Committee on 6^th December 2011 whose comments will be reported at the meeting.) 

(The two appendices to this report have been circulated to members under separate cover – please bring your copy to the meeting.)

Report DR10108

The Executive received a report on two matters dealt with by the Council’s external auditors, Price Waterhouse Coopers, and which was also submitted to the Audit Sub-Committee on 6^th December 2010.  The first item concerned the 2009/10 report to satisfy the requirements of (ISA (UK&I) 260) – Communication of audit matters with those charged with governance.  The report summarised the results of the External audit work undertaken for the 2009 audit.  The second matter was the Annual Audit Letter which provided a high level summary of the results of the 2009/10 audit work, together with recommendations.  Members noted that following the government announcement to abolish comprehensive area assessment (CAA) at the end of May, all work on the issue of Use of Resources had ceased.  However, based on the work that had been completed the Council continued to show a strong performance in the areas where it had been previously assessed as performing well and improvements were noted in the areas previously identified for development.

The Director of Resources referred to the Sub-Committee’s discussions with the audit representatives and a copy of the minute of that item had been circulated.  The Sub-Committee had questioned whether there would be a reduction in the level of audit fees to be charged, which was also raised by the Resources Portfolio Holder, and the future of the Audit Commission.  Members were informed that as not all of the work had been completed by the auditors there may be a corresponding reduction in the fees charged and this would be the subject of negotiation.  At this stage it was not clear what the process for external audit would be following the demise of the Audit Commission. 

RESOLVED that the reports be noted.