The Committee considered the report of the Head of Finance and Customer Services setting out the External Auditor’s report on the progress to date against the 2011/12 audit plan.  The Head of Finance and Customer Services advised the Committee that, unfortunately, Mr Steve Golding, the Audit Manager, was unable to attend the meeting to present the report.  It was noted that:-

·  The External Auditor had raised no concerns with the Council in the report on progress to date, and, in general, the progress of the External Auditor was in line with the original audit plan.

·  Following the Government’s decision to tender the audit activities carried out by the Audit Commission, the contract for the Kent, South London and Surrey area was awarded to Grant Thornton for the five year period 2012/13 to 2016/17.  The new audit appointment would commence on 1 September 2012, and the Audit Commission had extended the current audit appointment to allow any audit issues arising between 1 April 2012 and 31 August 2012 to be dealt with.  The Commission had arranged a number of events with the successful firms and the Head of Finance and Customer Services had attended a meeting with Grant Thornton in May.  Audit Practice staff in the Kent Team would be transferring to Grant Thornton on 31 October 2012.

·  The scale audit fee for 2012/13 would be £66,400, which represented a 40% reduction on the 2011/12 scale fee, and had been budgeted for.

In response to questions by Members, the Head of Finance and Customer Services explained that Grant Thornton was a large, international firm which had not worked with the Audit Commission before and was not encumbered in any way.  During the period that he had been employed by the Council, the External Auditor had never issued a qualified opinion on the Council’s accounts.

RESOLVED:  That the External Auditor’s report on the progress to date against the 2011/12 audit plan be noted.