Agenda item - Ernst & Young: Progress Report 2012/13

Report of Ernst & Young (copy attached).

69.1         The External Auditors introduced the report explained that since the transfer to Ernst & Young the scale fee had been reduced by 40%. In relation to the 2011/12 audit it was explained that this had been completed including the report on claims and returns. The work on the 2012/13 audit was already underway, and close work with internal audit was being undertaken to avoid a crossover. The audit for 2012/13 would now be able to cover the whole population of data – rather than just a sample. Work had also begun on the VFM conclusion.

69.2         Councillor Ann Norman asked a question in relation to some of the language used around ‘adequate corporate arrangements’. In response it was explained that the wording related to specific terminology; however, it was agreed that it would be useful to give an indication of the strength.

69.3         Councillor Sykes asked how benchmarking could inform the VFM conclusion, and it was explained that over time the Audit Commission had moved away from national studies, and there was no longer benchmarking in this sense. Instead the Audit Commission had sought to look at the financial resilience of the arrangements.

69.4         The Chair asked a question on behalf of Dr Horne, and it was explained that in relation to the transfer of Public Health functions to the local authority there had been initial issues in the identification of a budget to be transferred; as well as consideration of the necessary contracts. It was noted that the Council was already in a stronger position as Public Health employees had been resident in Council offices for 5 years. In terms of audit priorities there would be no specific work in relation to the transfer.

69.5         RESOLVED – That the Committee consider the 2012/13 external audit progress update and attached sector update; ask questions as necessary and note the progress report.