Issue - items at meetings - Audit Commission: Progress Report 2010/11

Report of the Audit Commission (copy attached).

RESOLVED- That the Audit Committee note the external audit progress report and briefing.

9.1          The Committee considered a Progress Report and update 2010/11 from the Audit Commission that detailed progress against their 2010/11 Audit Plan and was intended to provided a summary of progress made and any significant issues arising.

9.2          The Chair noted the District Auditor’s satisfaction that some progress was being made in improving the payroll system as this had historically been a problem. He requested further information from the District Auditor on the future of the Audit Commission.

9.3          The District Auditor responded that the public consultation process was ongoing however, a letter from Sir Bob Kerslake, Permanent Secretary of the Communities and Local Government Department to local authority Chief Executives had provided further clarity to the issue. His letter had outlined that external advice had suggested that the best way to transfer the Audit Commission’s work to the private sector was to out-source the in-house Audit Practice as it was believed that this would secure the best price. The District Auditor believed that the procurement process would include selection from four or five medium-sized firms and the Audit Commission had been asked by the Communities and Local Government Department to begin preparatory work for the transfer of the 2012/13 audits. The District Auditor added that she expected these contracts to be sold on a regional basis so local authorities would continue to work with much the same audit teams as before. Plans for an employee mutual were continuing.

9.4          RESOLVED- That the Audit Committee note the external audit progress report and briefing.