Issue - meetings

Mr Wells introduced the report of the External Auditor on the progress to date against the 2014/15 Audit Plan.  The report also provided a summary of emerging national issues and developments together with a number of challenge questions in respect of these emerging issues.

In response to questions, it was explained that:

·  Local authorities should be considering the extent to which they might be affected by the ruling of the Employment Appeal Tribunal in relation to the inclusion of overtime in the calculation of holiday pay.  If the Council decided that it was likely to be affected in a material way, then appropriate provision should be made in the accounts.  The HR Team was undertaking a detailed review of specific staff to determine whether the liability was material or not.

·  In terms of the Local Government Pensions Scheme, the External Auditor would test controls to ensure that employer and employee contributions were being made completely and accurately, test the calculation of benefits for new pensioners and test the new entries into the Pension Fund.  The External Auditor also did work in respect of the actuarial valuation for the Borough Council and employed an auditor’s expert to assess the actuary’s assumptions and methodology to ensure their appropriateness for this purpose.

·  A briefing or report could be provided on the key findings of the Independent Commission into Local Government Finance which was established to examine the system of funding local government in England and to bring forward recommendations on how it could be reformed to improve funding for local services and promote sustainable economic growth.  The Greater Manchester health devolution deal was an example of what could be achieved in the long term.

RESOLVED:

1.  That the External Auditor’s progress report, attached as Appendix A to the report of the Head of Finance and Resources, be noted.

2.  That a report be included on the agenda for a future meeting of the new Audit, Governance and Standards Committee addressing the key findings of the Independent Commission’s final report and the implications/opportunities for the Council.