Issue - meetings

REPORT OF ERNST AND YOUNG

To consider the Audit Findings Report for NHDC 2017/18.

RESOLVED:  Thant the Audit Findings Report for 2017/18 be noted.

REASON FOR DECISION:  To enable the Committee to consider and comment on the Report 2017/18.                                                                                                                                                                                                                                                                                                                                                                              

The Manager (Govt. & Public Sector), Ernst & Young explained that it had been a challenging year for the finance teams and auditors due to the bringing forward of deadlines.  The impact being, that teams had a month less in which to prepare accounts and two months less in which to complete all local government audits.

Due to the tight deadline, at the time of issuing the report to the Committee there was a programme of outstanding work included.  This work has now been completed.  Only the receipt of the signed Letter of Representation was outstanding, which would appear later on in this agenda.

The Manager (Govt. & Public Sector) advised that Ernst & Young was proposing to issue an unqualified opinion on the financial statements and an unqualified opinion on it’s value for money conclusion.  This meant Ernst & Young were satisfied appropriate arrangements were in place regarding value for money.

There were no unadjusted audit differences.

The Manager (Govt. & Public Sector), Ernst & Young advised that there was one key audit difference, adjusted by Management within the revised financial statements in respect of pension fund liability.  The pension fund assets were usually based on an estimate at the end of January.  When the pension fund audit was carried out it was found that the actual position at the end of March was significantly better originally projected.  The pension position relating to the Council had improved by £1.9m which was a reflected position across the country due to market movements.

There were no matters to be highlighted for Members’ attention other than the Value for Money conclusion.

The Manager (Govt. & Public Sector), Ernst & Young advised they had projected a significant risk in respect of the challenging savings programme for 2018/19 which was £3.6m at the time of the audit plan.  A substantial amount of those savings were due to be delivered through the retender of the waste contract.  They had also looked at the MTFS and key assumptions expected to be made, and these were in line with their expectations.  There was a significant element of New Homes Bonus, which could be subject to change that was built into the base budget, but there was a reasonable level of reserves should the scheme change.  The Council was on track as reported in the monitoring report to be very close to the budgeted position.  It therefore appeared that the waste contract was delivering the envisaged savings.

The Manager (Govt. & Public Secotr), Ernst & Young advised that they were not proposing any changes to their fee and there were no other particular issues to raise.

Overall the audit finding was a positive projection of future reserves.

RESOLVED:  Thant the Audit Findings Report for 2017/18 be noted.

REASON FOR DECISION:  To enable the Committee to consider and comment on the Report 2017/18.