Issue - meetings

Keith Hosea of Grant Thornton introduced the External Auditor’s Annual Audit Letter summarising the main findings from the work undertaken by the External Auditor for the year ended 31 March 2014.

In response to questions by Members, it was explained that:

·  The audit fees as they stood at the moment were set by the Audit Commission and represented a 40% reduction on the scale fees before the tendering exercise when Grant Thornton were appointed.  There was likely to be a further reduction from 2015/16.  Historically, the fees were based on complexity and the size of the authority.  Going forward, there would be more of an open market.  The issue of audit fees could be covered in a Member training session.

·  The External Auditor’s recommendation that the Council should consider carefully whether the proposed reduction in usable reserves would provide sufficient financial resilience to fund projects and absorb future financial shocks would be raised with the Strategic Leadership and Corporate Services Overview and Scrutiny Budget Working Group and the Cabinet as part of their consideration of the Medium Term Financial Strategy having regard to benchmarked data.  The External Auditor would not recommend an appropriate level of reserves, but would expect the Council to consider and confirm that it was comfortable with its approach.

RESOLVED:  That the External Auditor’s Annual Audit Letter for the year ended 31 March 2014, attached as an Appendix to the report of the Director of Regeneration and Communities, be noted.