Issue - meetings

To consider the External Audit Plan 2015-16.

Members received the External Audit Plan.  The Plan’s purpose was to provide the Audit Committee with a basis to review Ernst & Young’s proposed audit approach and scope for the 2015-16 audit.

During the discussion of this item the following points were made:

·         With regards to financial statement risk, the following risks identified were highlighted; risk of management override, incorrect Capitalisation of Revenue Expenditure, IPSAS 16 & IFRS 13 – Fair Value Measurement and Better Care Fund.

·         Ernst & Young had not identified any risks which they viewed as relevant to their value for money conclusion.

·         Ernst & Young had determined that overall materiality for the Council’s financial statements was £6.7 million, based on 2% of gross expenditure.  Councillor Whittle asked how the 2% was set.  Helen Thompson indicated that it was Ernst & Young.

·         Uncorrected audit misstatements greater than £337,000 would be communicated to the Committee.  Members were reminded that the amount considered material at the end of the audit might differ from the initial determination.

·         In response to a Member question, Helen Thompson confirmed that the cumulative impact of misstatements was also considered.

·         The indicative fee scale for the audit of Wokingham Borough Council was £105,617, together with an estimated fee of £7,183 for the certification of the housing benefits subsidy claim.

RESOLVED:  That the External Audit Plan 2015-16 be noted.