MAIDSTONE BOROUGH COUNCIL

Audit Committee

Monday 30 March 2015

REPORT OF Head of Finance & Resources

Report prepared by Ellie Dunnet 

1.           External Auditor's Audit Plan 2014-15

1.1        Issue for Decision

1.1.1   To consider the External Auditor’s Audit Plan for 2014-15 as attached at Appendix A to this report.

1.2        Recommendation of Head of Finance and Resources

1.2.1   That the Audit Committee notes the content of the audit plan as attached at Appendix A.

1.3        Reasons for Recommendation

1.3.1   The external auditor produces an annual audit plan for the financial statements audit opinion and value for money conclusion.  As in previous years, this work will be undertaken by Grant Thornton, the appointed auditors.  Representatives from Grant Thornton will be in attendance at the meeting to present the report and answer any questions raised by members of the committee.

1.3.2   The Audit Committee is asked to note this report as part of the delivery of its responsibilities in relation to external audit.

1.4        Alternative Action and why not Recommended

1.4.1   The report details the external auditor’s plan for ensuring the delivery of the audit opinion and value for money conclusion by the statutory deadline and notes the significant risks identified, the results of work undertaken to date and the anticipated audit fee.  It is considered appropriate for the committee to receive this information at this time; therefore no alternative action is recommended.

1.5        Impact on Corporate Objectives

1.5.1   The financial statements audit opinion and value for money conclusion are a mechanism through which accountability and value for money can be demonstrated to the public.  In this respect they are considered to support the achievement of corporate objectives.

1.6        Risk Management

1.6.1   The audit plan helps to mitigate the risk of failing to meet the statutory deadline for the audit opinion and value for money conclusion.  For 2014-15 this must be completed the 30 September 2015.

1.7        Other Implications

1.7.1    

1.7.2   The anticipated audit fee for 2014-15 is £81,210, which covers the financial statements audit and grant certification work.  This represents an increase of £900 from the fee letter presented to this committee in July 2014.  The increase relates to additional audit procedures on material business rates balances and disclosures in the financial statements which auditors will need to carry out in the absence of certification work previously undertaken on the non-domestic rates return.

1.8        Relevant Documents

1.8.1   Appendices

Appendix A – External Auditor’s Audit Plan 2014-15

1.8.2   Background Documents

None

IS THIS A KEY DECISION REPORT?                  THIS BOX MUST BE COMPLETED   X     Yes                                               No     If yes, this is a Key Decision because: ……………………………………………………………..   …………………………………………………………………………………………………………………………….     Wards/Parishes affected: …………………………………………………………………………………..   ……………………………………………………………………………………………………………………………..