Agenda item

Report of the Head of Finance

The External Auditor presented the report to Members, summarising the financial statements and value for money arrangements work.  He also highlighted the independence and objectivity requirements at appendix three.

In response to a question from Councillor G Jones, the Head of Finance stated that the current provision for business rate appeals was approximately five million pounds.

Regarding the faster close of accounts, Councillor F R D Fenning asked for some assurances that there was enough staff resource in place to achieve the deadline and also asked if external audit were satisfied that it was achievable.  The Head of Finance commented that the senior management restructure had placed more resources in the finance service and she believed the current staff resources was adequate.  However, she still believed it would be a challenge to meet the deadline and therefore would need a strict timetable which would need to be tightly managed.  The External Auditor commented that there were lessons to be learnt from the previous year as the deadline had been missed due to a change in personnel but he was confident that it could be achieved this year.  He added that the Audit and Governance Committee had a key role to play, this was the reason it was important to have a mechanism to ask questions and discuss the accounts early in the process.

In relation to the value for money risk of the Medium Term Financial Planning, Councillor S Sheahan asked how external audit would approach the assessment of these risks.  The External Auditor responded that they would work closely with the Head of Finance to challenge the assumptions made and to ensure that adequate arrangements were put in place to deal with the uncertainties.  He added that it was not an exact science but the External Auditors used their knowledge and experience to ensure that the authority was aware of all factors and that these were clearly set out in all reports.  He concluded that it was important to have a flexible approach and was a priority to make sure that there was nothing unreasonable included within the budgeting process.

Councillor S Sheahan asked for the External Auditors opinion on the continued freeze on council tax levels.  The External Auditor explained he could not become involved in the matter as it was a political decision, however it was important to ensure that the appropriate level of information was made available to members when making this decision and that the correct arrangements were in place to plan for the future once the decision had been made.  He added that it was not his place to challenge political decisions.  Councillor S Sheahan asked if that decision put the authority at risk due to the reliance on other unsustainable forms of income such as the new homes bonus.  The External Auditors agreed that there was some uncertainty around the new homes bonus and that was why it was important to have the correct plans in place, this was what External Audit looked for.

It was moved by Councillor D Harrison, seconded by Councillor G Jones and

RESOVLED THAT:

The External Audit Plan for 2017/18 be noted.