Issue - meetings

Report by the Chief Finance Officer

41.1     The Committee considered a report by the Chief Finance Officer, which presented the Ministry of Housing, Communities and Local Government’s interim response to the Redmond Report.

41.2     The Committee discussed the value of the appointment of an independent member of the Audit Committee (as per Recommendation 4), noting the precedent set by such an appointment to the Pension Committee of an independent advisor.

41.3     The Committee RESOLVED to note the report, and that a report on the full response will be presented to the Committee in due course. 

Report by the Chief Finance Officer

25.1     The Committee considered a report by the Chief Finance Officer which presented the Independent Review into the Oversight of Local Audit and the Transparency of Local Authority Financial Reporting by Sir Tony Redmond (the Review).  The Review, with its 23 recommendations, has been presented to MHCLG which is considering its response. A further report post-implementation will be brought to the Committee.

25.2     The Committee discussed:

·         The visibility of the accounts

·         Fee levels

·         The relationship between Internal and External Audit

25.3     It was confirmed that the GT Report was in the public domain by way of its publication with the Audit Committee agenda, as were the authority’s accounts. In relation to the fee levels, nationally the reduced levels have been a challenge to the external audit firms, and the levels of experience they are able to dedicate to local government audit, given the need to separate advisory and audit arms of the firm. Darren Wells set out the increased regulatory requirements put on firms.

25.4     It was confirmed that there was a Review recommendation to reconnect Internal and External Audit.  The current External Audit Code of Practice has changed in recent years, to limit the reliance on the work of Internal Audit. 

25.5     The Committee RESOLVED to note the report.