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Audit, Governance & Standards |
20 July 2015 |
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Is the final decision on the recommendations in this report to be made at this meeting? |
Yes |
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External Audit Fee Letter 2015-16 |
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Final Decision-Maker |
Audit, Governance & Standards Committee |
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Lead Director or Head of Service |
Paul Riley, Head of Finance & Resources |
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Lead Officer and Report Author |
Ellie Dunnet, Chief Accountant |
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Classification |
Non-exempt |
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Wards affected |
N/A |
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This report makes the following recommendations to the final decision-maker: |
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1. That the committee notes the proposed audit fee of £61,893 for 2015-16 audit work to be undertaken by Grant Thornton. |
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This report relates to the following corporate priorities: |
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· Great People · Great Place · Great Opportunity |
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Timetable |
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Meeting |
Date |
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Audit, Governance & Standards Committee |
20 July 2015 |
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External Audit Fee Letter 2015-16 |
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1. PURPOSE OF REPORT AND EXECUTIVE SUMMARY
1.1 This report communicates the proposed external audit fee for 2015-16, as set by the Audit Commission prior to its closure on 31 March 2015.
2. INTRODUCTION AND BACKGROUND
2.1 The council’s external auditors for 2015-16 will be Grant Thornton as in previous years. Following the closure of the Audit Commission, responsibility for overseeing the current audit contract and setting fees from 2016-17 onwards has been passed to Public Sector Audit Appointments Ltd.
2.2 The letter from Grant Thornton attached at Appendix I sets out the details of the 2015-16 fee including the scope and timing of planned audit work for the forthcoming year.
3. AVAILABLE OPTIONS
3.1 The committee are asked to note this report. There are no alternative options as the council has a statutory obligation to have its accounts externally audited.
4. PREFERRED OPTION AND REASONS FOR RECOMMENDATIONS
4.1 As stated elsewhere in this report, the committee are asked to note the proposed audit fee for 2015-16.
4.2 The main audit fee has been set at £50,475 for 2015-16, which represents a reduction of £16,825 compared with the anticipated 2014-15 fee of £67,300. This fee covers the financial statements audit and value for money conclusion.
4.3 In addition to this, the indicative fee for grant claim certification work has been set at £11,418, compared with £13,910 in 2014-15. This relates to the certification of the housing benefits subsidy claim.
4.4 The proposed reductions in audit fee for 2015-16 are a result of the procurement exercise undertaken by the Audit Commission prior to its closure in March.
5. CROSS-CUTTING ISSUES AND IMPLICATIONS
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Issue |
Implications |
Sign-off |
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Impact on Corporate Priorities |
There is no direct impact on corporate priorities. |
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Risk Management |
There is risk that the council could incur additional fees if the external auditor identifies significant issues which give rise to additional audit work needing to be undertaken. Officers will work closely with Grant Thornton throughout the year in order to minimise this risk. |
Section 151 Officer & Finance Team |
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Financial |
The proposed 2015-16 audit and grant claim certification fees of £50,475 and £11,418 respectively represent an overall reduction of £19,317 from the 2014-15 fee. |
Section 151 Officer & Finance Team |
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Staffing |
Not applicable |
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Legal |
Not applicable |
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Equality Impact Needs Assessment |
Not applicable |
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Environmental/Sustainable Development |
Not applicable |
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Community Safety |
Not applicable |
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Human Rights Act |
Not applicable |
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Procurement |
Not applicable |
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Asset Management |
Not applicable |
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6. REPORT APPENDICES
The following documents are to be published with this report and form part of the report:
· Appendix I: External Audit Fee Letter 2015-16
7. BACKGROUND PAPERS
None