There is a statutory requirement for the Council to be externally audited and inspected. The external auditors are appointed by the Audit Commission. Across the country the Commission appoints a mixture of private sector auditors and Audit Commission auditors, rotating them periodically. The Council's current auditors are the Audit Commission.
Each year the external auditor issues her 'Audit and Inspection Plan' which sets out her intended activity over the forthcoming year. The latest Plan for 2007/08 (report 26/07) is attached for the Committee to approve. The Plan has been discussed and agreed in principle by the Chief Executive and Directors. Members are invited to consider the Plan and raise any questions at the Committee meeting. By approving the Plan, the Committee will be endorsing the auditor's approach which will improve the effectiveness of the audit and inspection process.
Members are asked to note the following 'highlights' of the Plan:
Note: This (external) Audit and Inspection Plan should not be confused with the separate (internal) Audit Plan which is produced by the Internal Audit Section.
Recommendation
that the 2007/08 External Audit and Inspection Plan be approved.
Minutes:
The Committee received and considered report 26/07 which set out the external audit and inspection plan for 2007/08. It was noted that the Plan had been discussed and agreed in principle by the Chief Executive and the Directors. The Plan noted a number of highlights as follows:-
The Strategic Director and Chief Finance Officer reported the apologies of the External Auditor, who was unable to attend the meeting.
The Joint Head of Finance reported that South Oxfordshire District Council’s Audit and Governance Committee had met the previous evening and resolved to note the report and stated that questions would be asked of the External Auditor at its next meeting.
The Strategic Director and Chief Finance Officer reported that the decision to appoint external auditors to local authorities was a matter for Central Government although it was possible for a local authority to petition the Government to change its External Auditor. In respect of the audit fees charged, he advised that these were set nationally.
One Member asked whether consideration had been given to the specific actions identified which the Council could take to reduce its audit and inspection fees. In response, the Joint Head of Finance advised that the Council would endeavour to provide good working papers to assist the Inspectors but it had been recognised that entering the first year of shared services increased the level of risk which might increase the audit fee. The Strategic Director and Chief Finance Officer explained that the Council had been identified as being weak in three areas which could potentially result in extra audit days and that flow charting techniques would take time to implement.
It was agreed that the External Auditor should be invited to the next meeting of the Committee.
RESOLVED
(a) that the External Audit and Inspection Plan 2007/08 be noted and that the External Auditor be advised that the Committee wishes to discuss the report further at its next meeting;
(b) that the Strategic Director and Chief Finance Officer be delegated authority to approve the External Audit and Inspection Plan 2007/08 if it is deemed necessary.
Supporting documents:
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