Agenda item

To receive the Wokingham Borough Council Audit Planning Report Year ended 31 March 2022.

Stephan Van Der Merwe presented the Wokingham Borough Council Audit Planning Report year ended 31 March 2022.

·       The report explained the audit risks that EY would be focusing on during the 2021/22 audit.

·       Audit processes remained ongoing, and a further update would be provided to the Committee at the conclusion.

·       Stephan Van Der Merwe brought to the Committee’s attention, the risks that had been identified and which would be focused on during the audit.  These risks were largely unchanged from the previous year’s audit.  The risks relating to accounting for Covid 19 grants and unreconciled imprest accounts were no longer considered areas of focus.

·       The new focus for the audit was around the accounting for infrastructure assets.  Depending on the outcome of the national consultation the level of risk may vary.

·       Members noted the proposed audit fees for 2021/22. 

·       The Committee was informed that as the audit for 2020/21 was still ongoing the final audit fee was yet to be determined.

·       Stephan Van Der Merwe highlighted an error in the report.  In the planned fee column, the revised fee should read £154,643.

·       The PSAA had recently determined the final fee scale variation for the 2019/20 audit of £68,541.

·       Councillor Davies expressed surprise that the planned fees and the final fees would be aligned, and that the planned fees for 2021/22 were identical to the planned or final fees for 2021/22, given inflation.  Stephan Van Der Merwe explained that the scale fee rebasing fee was essentially the evolving risks that EY considered related to the audit and what that would cost.  This was a standard increase in the fee going forwards.  In terms of the additional fees set by PSAA these were based on the latest guidance.

·       Councillor Gee asked why the fee for 2021/22 was the same as that for 2020/21 if there was an increased infrastructure risk.  She was informed that the costs for the additional risk identified were still to be determined based on the hours spent by the auditors.

·       Councillor Harper noted that the Department for Levelling Up, Housing and Communities (DLUHC) paper “Measures to improve local audit delays” had moved the publication date for audited local authority accounts from 31 July to 30 November.  Graham Cadle explained that during the pandemic greater leeway had been given in the whole of the accounting process.

·       It was clarified that PPE stood for Property, Plant and Equipment.

·       In response to a question from Councillor Smith as to the Committee’s role with regards to the Audit fee, the Chair clarified that the Committee role was to have a view on the fees.  Officers had not raised any concerns on them with her.  Stephan Van Der Merwe added that the fees were submitted to the PSAA as part of the contract with them and they then reviewed them and determined if they were appropriate.

·       Councillor Smith asked how value for money was considered on very large contracts, and the management of them by officers.  He was informed that during the planning process EY looked at the various arrangements the Council had in place to ensure economy, effectiveness, and efficiency.

·       Councillor Smith asked what large value contracts there were by department.   Stephan Van Der Merwe indicated that this was not part of the Value for Money process.  Graham Cadle added that the external audit work did not cover specific contracts, however, some of this was covered by the work of Internal Audit.

RESOLVED: That the Wokingham Borough Council Audit Planning Report year ended 31 March 2022, be noted.