Decision details

The committee received a report from the Head of Finance and Ernst and Young detailing the Audit Plan from Ernst and Young which summarised their approach to the audit of the financial statements and the value for money conclusion for 2015/16.

In response to members’ questions the Assistant Manager of Ernst & Young and the Head of Finance said the following:

i.             If the Housing Company was started up, this may change the scope of the profit and loss audit approach.

ii.            The Auditors would review the financial statements that were provided to them to see if they were accurate.

iii.           Whilst working with other authorities the Council’s Finance Department would undertake normal financial procedures and report against budgets.  There would be reliance on internal financial controls for audit purposes.   

iv.          For services that were being delivered through alternative methods for example the Cultural Trust (being an arm’s length company) the Auditors would be interested in the nature of the relationship of this organisation with the Council.  For example if the organisation was totally owned by the City Council or whether it was a separate organisation.

v.           An arm’s length organisation would have to appoint their own external Auditors.

vi.          The Principal Accountant (Technical & Financial Accounting) was looking at the Council’s relationship with the Destination Management Trust (DMO) and the Cultural Trust before pulling the accounts together so that there was an agreed approach for how to deliver the accounts.   

Resolved (unanimously) to:

i.             Note the contents of the external audit plan.