Issue - meetings

The Committee considered the report of the Head of Finance and Resources setting out details of the External Auditor’s Audit Plan for 2013/14 and of the anticipated audit fee.  It was noted that the plan was risk based and had been developed following consideration of both local and national risks and the audit work completed to date.  The anticipated audit fee was £83,700 which covered the audit of the Statement of Accounts and grant certification work.

In response to questions, Mr Wells of Grant Thornton (the External Auditor) explained that:

• The level of materiality used in performing the audit was about 2% of gross revenue expenditure.  The concept of materiality to provide a level of assurance within an audit fee was well established and 2% was the benchmark used when considering the cumulative impact of errors identified and the risk.

• Outturn against budget would be reviewed as a risk assessment and unusual budget variances would be built into audit planning.

• It was accepted that there was a need to develop within the Audit Plan consideration of the impact of the provisions of the Localism Act on the way in which the Council conducts its business in future, including working in partnership with community groups and Parish Councils.

RESOLVED:  That the content of the External Auditor’s Audit Plan for 2013/14, attached as Appendix A to the report of the Head of Finance and Resources, be noted.