Agenda item - Ernst & Young: Annual Audit Letter 2012/13

Report of the External Auditor, Ernst & Young (copy attached).

48.1         The Committee considered a report of the External Auditors, Ernst & Young, in relation to the 2012/13 Annual Audit Letter. The report sought to communicate the key issues arising from the work undertaken on the 2012/13 annual audit. The detailed findings had already been reported to the Committee at the 24 September 2013 meeting; the matters reported in the letter were the most significant for the Council.

48.2         The Committee discussed projected under-spending in the budget, and the role this played in the budget setting process. It was explained that when the Council was setting the budget for the forward year it had to take account of performance against the current year’s budget, and, if underspent, this could lead to one off resources being available for the forward budget. It was noted that the underspend for 2012/13 had been approximately £100k more than had been projected by the outturn position as the full budget position could not be realised until after the budget for the forward year had been set. Where there had been some confusion in relation the wording of this in the Annual Audit Letter, appended to the report, it was agreed that this would be amended.

48.3         RESOLVED – That the Committee consider the letter and ask any questions as necessary.