Agenda item - EY - Audit Plan 2014/15

Report of the External Auditors (copy attached)

88.1    The Committee considered the report of the external auditor Ernst & Young LLP (EY). The report was introduced by Mr P King of EY.

88.2    Councillor Wealls referred to point 5.3 of the Audit Plan and noted that only uncorrected misstatements over £593,000 would be reported. Mr King said that the auditors could only give reasonable, not absolute, assurance on an audit and therefore a materiality level was set. Materiality was defined as the magnitude of an omission or misstatement that could reasonably be expected to influence the users of the financial statements. Councillor Wealls said that therefore if, for example, Council Tax collection was incorrect by £500,000 it would not be reported. Mr King said that as a general rule it would not, but if any issues of governance arose that would be reported and the appropriate action taken.

88.3    Councillor A Norman referred to point 4 of the Audit Plan and asked if there were other areas of high spend which could be considered as concerning by the auditors. Mr King said the auditors would not solely be looking at the numbers, but a high spend could reflect a high quality service or reflect particular priorities of the Council. Mr Mathers (EY) added that any high cost areas identified would be reported back to the Committee.

88.4    RESOLVED:  That the Committee noted the report.