Agenda item - External Audit Plan for 2021/22

Report of External Audit

That the Audit and Standards Committee:

1)             Considers and notifies the external auditor as to whether or not there are any other matters which may impact on the planned audit.

2)             Note the External Audit Plan 2020/21

10.1      The Committee considered a report of External Audit that set out the External Audit Plan for 2021-22 and identified risks and issues that are expected to impact on the audit including: consideration of materiality; arrangements for reviewing Value for Money; the anticipated audit fees and assurance regarding independence and ethical considerations.

10.2      In response to a query from the Chair, the External Auditor explained that the new standard was developed in order to put in place controls for developing estimates and was recognition that the use of estimates had risen significantly in the public and private sector in recent years.

10.3      In response to questions from Councillor Hugh-Jones, the External Auditor explained that the Royal Institute of Chartered Surveyors (RICS) did recognise that the pandemic had caused difficulty to give robust valuations and in recognition of that, all valuers had stated there was a material uncertainty with their valuations. That would not be the case this year as it was the view of the RICS that the property market had recovered from the uncertainty. That would also remove some of the uncertainty relating to valuations and pension funds. Furthermore, it was clarified that the vast part of the increase in fees related to changes to value for money work as detailed on page 144 of the agenda and was subject to agreement by the Public Sector Audit Appointments.  

10.4      In response to a query from Councillor Meadows, the External Auditor explained that for some grants, the Council was the agent, and the test of material grant revenues was to ensure that those grants were not reflected in the financial statements as income.

10.5      RESOLVED- That the Audit and Standards Committee:

1)           Considers and notifies the external auditor as to whether or not there are any other matters which may impact on the planned audit.

2)           Note the External Audit Plan 2020/21