Issue - meetings

To consider the report of the Council’s External Auditor.

David Bray, Engagement Manager, from Grant Thornton, presented the progress report, providing Members with details of their work in delivering their responsibilities as the external auditors of the Council. He stated that the Financial Statements Audit would begin in December 2018 and that any findings would be included in the Progress Report at the March 2019 Audit and Governance Committee meeting.

He explained that Grant Thornton had reviewed the KPMG audit files for the closing balance for 2017/18, to determine the opening balances for 2018/19. This was a standard formality procedure undertaken during the transfer from the previous auditor (KPMG) to the current auditor (Grant Thornton).

The Engagement Manager discussed the Chartered Institute of Public Finance and Accountancy (CIPFA) consultation, which would provide authoritative measures of local authority financial resilience using a new index and assess the financial health of each English council. Grant Thornton were happy with the consultation, however the results from the consultation had been referred back to them.

The Chief Finance Officer commented on the CIPFA consultation measures, noting the measures were very broad. Exeter City Council had scored well in some areas, but had also scored low in other areas, such as not undertaking long term borrowing, which made the current liabilities look weaker. The report provided Members with a context to the scoring, allowing Members to make their own judgement.

Members were advised that the Engagement Manager would be writing to both the Chief Finance Officer and the Chair on any financial irregularities, which was a standard procedure.

The Audit and Governance Committee noted the External Audit Progress Report.