Issue - meetings

As the Council’s External Auditor, the Audit Commission has a duty to report to those charged with governance certain matters before an opinion is given on the financial statements. These matters are:-

(a)       expected modifications to the Auditor’s report

(b)       unadjusted misstatements

(c)        material weaknesses in the accounting and internal control systems identified during the audit

(d)       views on the qualitative aspects of the accounting practices and financial reporting

(e)       matters specifically required by other Auditing Standards to be communicated to those charged with governance

(f)         any other relevant matters relating to the audit

This Committee is responsible for receiving the External Auditor’s Management Letters and reports on Annual Corporate Governance matters and determining, on behalf of the Council, whether the Executive or an appropriate Committee or both should take action to respond to such matters. A copy of the Annual Governance Report is attached. 

Recommendation

that the Committee is asked to receive the External Auditor’s 2007/08 Annual Governance Report in order to determine whether any further actions are required in light of the Auditor’s comments. 

As the Council’s External Auditor, the Audit Commission, had a duty to report to the Council before an opinion was given on the financial statements.  These matters were:

• expected modifications to the Auditor’s report
• unadjusted misstatements
• material weaknesses in the accounting and internal control systems identified during the audit
• views on the qualitative aspects of the accounting practices and financial reporting
• matters specifically required by other Auditing Standards to be communicated to those charged with governance
• any other relevant matters relating to the audit

The Committee was responsible for receiving the External Auditor’s Management Letters and reports on Annual Corporate Governance matters and determining, on behalf of the Council, whether the Executive or an appropriate Committee or both should take action to respond to such matters.  The Committee received a copy of the external auditor’s Annual Governance Report for 2007/08. 

Maria Grindley, of the Audit Commission, reported that she had positive messages this year.  The audit found the financial statements to be good and completed on time.  She had only raised a limited amount of matters for the Council which were set out in her report.  The Council had made good progress.  She soon hoped to be able to issue a non-qualified opinion on the Council’s financial statements and value for money.  If there were any risks identified she would report them to the Committee during the course of the year rather than wait for a year-end report.  No significant risks had been identified. 

The Committee thanked the Chief Accountant for her thorough work and the good results. 

RESOLVED

that the External Auditor’s 2007/08 Annual Governance Report be received and that no further actions are required in light of the Auditor’s comments.