Issue - meetings

Report by Chief Operating Officer

60.1     The Cabinet considered a report by the Chief Operating Officer

60.2     It was RESOLVED – to approve the External Audit Plan for 2017/18.

Reason

60.3     KPMG’s overall audit approach remains similar to last year with no fundamental changes. Officers will continue to liaise with KPMG to ensure that their work is delivered as efficiently and effectively as possible and that internal and external audit plans are complementary and make best use of audit resources. 

Report by the Chief Finance Officer.

46.1     The Committee considered a report by the Chief Finance Officer, presented by Joanne Lees, Director at KPMG.  The Committee noted that this would be the last external audit by KPMG before the newly appointed external auditors, Grant Thornton, take over.  Ms Lees confirmed KPMG’s independence from the Authority.  

46.2     Ms Lees drew the Committee’s attention to the level of materiality, set at £9.9m, and the four areas of focus:

·         Valuation of land and buildings

·         Pension liabilities

·         Management override of control (required by professional standards)

·         Fraudulent revenue recognition (required by professional standards)

46.3     Ms Lees rebutted the risk of fraudulent revenue recognition, owing to the limited incentives and opportunities to manipulate the way income is recognised. 

46.4     It was confirmed that there was nothing further to report on the discussions with the Diocese of Chichester regarding ownership of various school premises in the County, which are ongoing.

46.5     In response to a question about the number of journal entries, the Head of Pensions confirmed that this ran into the thousands, and that the audit work will be focused on manual journals. 

46.6     The Committee RESOLVED to note the Plan to be submitted to Cabinet in April.