Decision status: Recommendations Approved
Is Key decision?: No
Is subject to call in?: No
The Committee considered a report by Grant Thornton regarding the External Audit – Audit Plan (circulated previously).
The External Auditor (PB) highlighted the following:
· The plan had been completed slightly later than planned although the planning had now been completed along with the interim works.
· The Audits had determined that the materiality to be £1.1m for the Authority which equated to 2% of the prior year’s gross expenditure for the year.
· Focus was to be made on the areas of greatest risk. These were the same as the previous year with one exception – that was the New payroll system / transfer of data.
· Following a new Code of Audit Practice from the National Audit Office (NAO) there were three main changes to the Value for Money (VfM) work:
o A new set of criteria
o More extensive reporting
o The replacement of the binary (qualified/unqualified) approach to the VfM conclusions.
· From 2022/2023 onwards there would be an increase in uncertainty as gaps in funding were experienced.
· The proposed fee for the Audit had increased by £15,500. This included £9,000 for the additional works required on the VfM under the new NAO code, and £6,500 due to the revised audit standards required (as covered by appendix 1 of the report).
The Head of Resources confirmed that there had been additional works required of the Auditors hence the increased fees. The Public Sector Audit Appointments (PSAA) would have to approve the fees.
RESOLVED that the External Audit – Audit Plan be noted.
Publication date: 12/07/2021
Date of decision: 08/06/2021
Decided at meeting: 08/06/2021 - Governance Committee