Decision details

The Deputy Chief Executive reported that external auditors appointed by the Audit Commission, KPMG, were required, in accordance with international auditing standards and statutory requirements, to report annually to the Council on:

·         Their opinion on the Council’s Statement of Accounts

·         Any uncorrected items in the Statement of Accounts

·         Qualitative aspects of the Council’s accounting practices and financial reporting

·         The Annual Governance Statement

·         Their annual Value for Money conclusion

They also reported annually on their audit of the Council’s accounting and internal control systems.

Neil Hewitson, on behalf of KPMG presented the report and responded to Members’ questions. He concluded that the Council had made proper arrangements to secure economy, efficiency and effectiveness in its use of resources and therefore anticipated issuing an unqualified VFM conclusion by 30 September 2015. It was also noted that KPMG had raised two recommendations which had both been accepted by Management Team. The first recommendation focused on work around value for money which reiterated the importance of staff and Councillors adhering to the code of conduct. Secondly there was a medium priority recommendation which focused on how the Council goes about valuating assets. It recommended an independent valuer which must be completed by 1 April 2016 to ensure it coincides with a financial year end.

The external auditor gave a positive overall conclusion and stated that this was a testament to the work of the Accountancy and Audit teams of the Council.

Resolved that:

1)    The Audit Committee is asked to note the External Auditor’s 2014/15 audit report (Appendix A).That the Chief Finance Officer sign the letter of representation (as attached to appendix 4 of the Auditors’ report).

2)    That the Chief Finance Officer and Chairman of the Committee sign the statement of accounts.

3)    That the Audit Committee notes the draft officer responses to the recommendations made in Appendices 1 and 2 of the Auditors report.