Issue - meetings

The Committee received an Initial Audit Plan 2021/22 from Ernst & Young LLP summarising the proposed approach to the 2021/22 external audit, including a consideration of the most significant audit risks.

The Head of Finance said the following in response to Members’ questions:

      i.          Ernst & Young would review if the City Council would be able to operate (financially) effectively due to risks/pressures such as inflation. The Medium Term Financial Strategy (MTFS) due to be reported in autumn 2022 would set out figures for the next five years. Inflation did impact on City Council operating costs and the MTFS would comment on this.

     ii.          Cipfa were looking at how to provide guidance on the infrastructure accounting issue (referred to in the covering report 4.2) and the plan itself in the risk section.

The Ernst & Young Officer said the following in response to Members’ questions:

      i.          The reference to “Effects of climate related matters on financial statements and Value for Money arrangements” on report P9 was standard wording and did not relate to any specific concerns.

     ii.          Payroll was normally a low risk, but mentioned in the Ernst & Young report as the Council had moved to a new system so the situation was being monitored as part of standard practice. There were no specific concerns.

   iii.          Council stock valuation work had not been undertaken in the reporting period so there were no comments in the Ernst & Young report.

   iv.          The Council had a lot of infrastructure assets. It was difficult to add/subtract spend on these in the asset register eg £X amount of piping replaced by £Y amount of piping. Ernst & Young tried to quantify this on the balance sheet for accounting purposes.

Unanimously resolved to note the contents of the EY Initial Audit Plan 2021/22.

The Chair asked for the minutes to show the Committees’ formal thanks to Jody Etherington as Deputy Head of Finance.