Meeting documents

To consider Report No WSC 84/18 to be presented by Sarah Crouch, Audit Manager, Grant Thornton – SEE ATTACHED.

The purpose of the reportisto provide the Audit Committee with a progress update regarding the work of the external auditors, Grant Thornton, together with information relating to emerging issues which may be relevant to the Council.

(Report No. WSC 84/18, circulated with the Agenda).

The purpose of the report was to provide the Committee with a progress update regarding the work of the external auditors, Grant Thornton, together with information in relation to emerging issues which might be relevant to the Council.

The Engagement Lead advised the Committee that he had completed his five years on the Council’s audit so there would be a new Engagement Lead who would attend Audit Committee in the future and her name was Geraldine Daly.

The External Auditors had completed the audit of the Council’s 2017-18 financial statements.  The audit opinion which included the value for money conclusion and certificate of audit closure was issued on 31 July 2018.  They issued:-

·         An unqualified opinion on the Council’s financial statements; and

·         An unqualified value for money conclusion on the Council’s arrangements to secure economy, efficiency and effectiveness on its use of resources.

The External Auditors had begun their planning processes for the 2018-19 financial year audit.  Their detailed work and audit visits would begin later in the year and would discuss timing of the visits with the appropriate managers.  They would continue to:-

·         Hold regular discussions with management to inform their risk assessment for the 2018-19 financial statements and value for money audits;

·         Review minutes and papers from key meetings; and

·         Review relevant sector updates to ensure that they captured any emerging issues and considered those as part of the audit plans.

The External Auditors were required to certify the Council’s annual Housing Benefit Subsidy claim in accordance with procedures agreed with the Department for Work and Pensions.  The results of the certification work were reported in their certification letter which would come to the March 2019 Audit Committee.

Duringthe discussionof thisitem thefollowing pointwas made:-

·         Members queried whether the Council’s direct labour (DLO) could be set up as a trading company.

The External Auditor advised that as a Local Authority, the labour could be set up as a trading company.  Other Councils had operated similar schemes, but he advised to proceed with caution as they were not always successful.

·         Members requested clarification on why dates post April 2019 were included in the External Auditors deliverables.

The External Auditor advised there was still one more audit cycle to sign off the final statement of accounts for West Somerset Council (WSC) in July 2019.

·         Concern was raised that after April 2019, the WSC Audit Committee would be stood down and that the New Council’s equivalent would sign off the statement of accounts.

That was a valid observation, however it had happened in other Councils and was similar to the process that occurred after a District Election.  The new Councillors would need training and would be advised to read the minutes of previous meetings so they were better informed to be able to sign off the accounts.

·         Members thanked all the staff for their hard work in the audit process and wished the Engagement Lead all the best for the future.

RESOLVEDthat the Committee noted the report from the External Auditor.