Contact your Parish Council

MAIDSTONE BOROUGH COUNCIL

AUDIT COMMITTEE

15^TH JULY 2013

REPORT OF HEAD OF FINANCE & RESOURCES

                  Report prepared by Paul Holland (Senior Accountant)

1.              EXTERNAL AUDIT FEES 2013/14

1.1           Issue for Decision        

1.1.1     To consider the proposed level of external audit fees for the 2013/14 audit.

1.2           Recommendation of Head of Finance & Resources                                              

1.2.1     That the Committee notes the proposed audit fee of £66,400 for the 2013/14 audit.                                                                                                           

1.3           Reasons for Recommendation                                                                   

1.3.1     The Audit Commission has now ceased the undertaking of public sector external audits and following a tendering process Grant Thornton have now been appointed as the Council’s external auditors for the next five years.                                                                                                               

1.3.2     The Main Audit fee for 2013/14 has been set at £66,400, which is no change from the fee for 2012/13. In addition the estimated fee for Grant Certification work has been set at £17,300.  A copy of the letter advising of the fees is attached as Appendix A.                                

1.4           Alternative Action and why not Recommended

1.4.1      There are no alternative actions. The Council is required to have its Statement of Accounts externally audited.                                                                                                               

1.5           Impact on Corporate Objectives                                                                                    

1.5.1     There is no specific impact on Corporate Objectives.                        

1.6           Risk Management                                                                                               

1.6.1     There is the risk of additional fees being incurred should the external audit process identify any extra work that needs to be done, particularly given that the audit fee has been reduced substantially, meaning that the external auditors will be under pressure to control their own costs. Following the issues identified that arose during the external audit for 2011/12 officers will be working closely with Grant Thornton to ensure that the Council minimises the risk of incurring additional fees.

1.7           Other Implications

1.7.1    

1.7.2      The financial implications are detailed in the report.                 

IS THIS A KEY DECISION REPORT? X     Yes                                               No     If yes, when did it first appear in the Forward Plan?   ..     This is a Key Decision because: ..   .       Wards/Parishes affected: ..   ..