Agenda item

7.1

The Committee considered a report of Ernst and Young attaching its Audit Plan which sets out how the Company intends to carry out its responsibilities as auditor.

7.2

Steve Clark, Ernst and Young, introduced the report. He commented that Michael Green had now left Ernst and Young and had been replaced by Hayley Clark who would attend future meetings of the Committee. One of the significant risks identified had been regarding valuation of properties and Ernst and Young were working to try and gain an understanding of valuations.

7.3

The Local Government Pension Scheme was a risk due to the high number of estimates which it entailed. In terms of value for money, there was one significant risk regarding securing financial resilience. Ernst and Young were undertaking work to understand how the Authority was mitigating against this risk.

7.4

Regarding the handover in external auditing from KPMG, it was hoped that matters would be concluded in the near future and Steve Clark did not think it would lead to any significant changes in accounting treatment.

7.5

Ernst and Young had already begun to consider risks arising from Lender Option Borrower Options (LOBO’s). Following a previous objection in relation to this the external auditors had compiled a report which stated that the City Council had no issue in relation to this and this could be circulated to Members.

7.6

RESOLVED: That the Committee:-

(a)

notes the report; and

(b)

requests that an item on Treasury Management be included on the Work Programme for future meetings of the Committee.