Issue - meetings

To consider the report of the Director of Resources (copy enclosed).

As the Internal Audit representatives were experiencing difficulties joining the remote meeting the Chairman proposed that the Committee consider Agenda Item 7. first, External Audit-Audit Planning Report.

The Committee considered the report of the Director of Resources and appendix 1, the Audit Planning  report,  designed to help the Council meet its governance responsibilities in relation to external audit. The Chairman called on Craig Wisdom, the External Auditor from Deloittes LLP, to present the report.

The External Auditor took the Committee through the report starting with an update on the annual audit currently underway. He drew Members’ attention to the scope of the audit which was in line with last year, in accordance with the Code of Audit Practice and guidance from the National Audit Office (NAO). He took the Committee through the four key risk areas covered in the report:-  1) Management override of controls; 2) Valuation of Property, Plant and Equipment; 3) Pension Liability and 4) Assets on the balance sheets. He advised that uncertainty in valuation was normal but that this current year had the added complexity of the impact of COVID-19 on valuation of assets. As a result, in terms of the accounts, he advised Members that the Council would need to include additional narrative on the risks associated with COVID-19

On delivery of the audit he reported that whilst it was slightly more difficult remotely it would be delivered to timescale and that the audit had been significantly better this year. The finance team had responded positively to last year’s recommendations and in his experience the audit was well ahead of schedule compared to other like organisations. The team was on track to complete within the next two/three weeks, by end of August 2020.

The Chairman thanked the External Auditor for the report and positive comments about staff. She reminded Members that the report was for noting only and that the external audit fee was scheduled to be discussed by the Chairman, the Director of Resources and the External Auditor on Friday 31 July 2020

The Chairman moved the recommendation which was duly seconded by Councillor Swain and agreed by the Committee.

RESOLVED  that the External Audit Planning report as shown in appendix 1 be noted.