Issue - meetings

To consider the report of the External Auditor, Grant Thornton.

The Manager, Grant Thornton, the Council’s external auditor, introduced the new engagement lead/key audit who presented the report making the following points:

·         the approach and timelines were similar to previous years;

·         page 21 highlighted the impact of the backstop however, Exeter was not impacted and a clean audit opinion had been issued which was a good position;

·         page 26-30 highlighted the key risks;

·         other risks could be found on page 30;

·         there were no group risks shown as this was no longer a requirement;

·         Value for money(VFM) related to findings in the previous year; and

·         Audit logistics showed the opinion prior to back stop date.

The Manager and Engagement Lead, Grant Thornton, responded to Members questions in the following terms:

·         local government reorganisation would be factored into any comments made;

·         the opinion was given in February which did not allow sufficient time for response to recommendations however this would hopefully be addressed in the Audit Findings report at the end of the year;

·         pensions defined risk differently to the Council and was based on assumptions which meant that a small change would move the risk past materiality;

·         VFM was not more than other public sector organisations but bears further scrutiny to ensure the finance team made appropriate assumptions;

·         at present there was a risk of significant weakness rather than actual;

·         there had been a change in accounting standards during the year;

·         there was a risk that failure to identify all relevant leases and assets could lead to an issue of materiality;

·         materiality had gone up as a result of regulator feedback which reflected the risk profile of the council;

·         heritage assets would be taken into consideration but it would depend upon the value of those assets; and

·         this year assurance would be sought as to those value of heritage assets and how those were disclosed.

The Audit and Governance committee noted the report following a unanimous vote.