Meeting documents

To consider this report.

The Committee considered an audit progress report and sector update from the Council’s external auditors Grant Thornton introduced by the Engagement Lead. Members were reminded that the Council’s financial statements had received an unqualified opinion and the value for money conclusion had received an adverse opinion.

It was reported that the external auditors had begun planning processes for the 2018/19 financial year audit. Detailed work and audit visits would begin later this year and, in the meantime, on-going discussions with officers would help to inform the risk assessment in respect of the 2018/19 financial statements and value for money audits.

The Committee was provided with an overview of the various component parts that comprised the report, noting the Audit Plans for the Pension Fund and Council and the materiality figure associated with each. The report also noted that the external auditors were meeting monthly with the Interim Director of Finance and other officers to assess how the Council continued to respond to the VFM conclusions and addressing its budgetary challenges.

There was a brief discussion and the External Auditors explained why the proposed Audit fees would be lower for next year and this seemed in large part due to the Council participating in a national procurement exercise which had resulted in a 23% reduction in the fees for Somerset. There was a question regarding 3 circles that were used to demonstrate the audit approach described as being a mixture of ‘methodology, learning and technology’ and it was confirmed that the circles in the diagram should overlap.

The external auditors report was accepted.

The Committee considered an audit progress report and sector update from the Council’s external auditors Grant Thornton introduced by the Engagement Lead. Members were reminded that the Council’s financial statements had received an unqualified opinion and the value for money conclusion had received an adverse opinion.

It was reported that the external auditors had begun planning processes for the 2018/19 financial year audit. Detailed work and audit visits would begin later this year and, in the meantime, on-going discussions with officers would help to inform the risk assessment in respect of the 2018/19 financial statements and value for money audits.

The Committee was provided with an overview of the various component parts that comprised the report, noting the Audit Plans for the Pension Fund and Council and the materiality figure associated with each. The report also noted that the external auditors were meeting monthly with the Interim Director of Finance and other officers to assess how the Council continued to respond to the VFM conclusions and addressing its budgetary challenges.

There was a brief discussion and the External Auditors explained why the proposed Audit fees would be lower for next year and this seemed in large part due to the Council participating in a national procurement exercise which had resulted in a 23% reduction in the fees for Somerset. There was a question regarding 3 circles that were used to demonstrate the audit approach described as being a mixture of ‘methodology, learning and technology’ and it was confirmed that the circles in the diagram should overlap.

The external auditors report was accepted.