Issue - meetings

To consider a report presenting the Audit Commission’s Annual Audit and Inspection fees for 2010/11. 

The Committee considered a report on the Audit Commission’s Annual Audit and Inspection fees for 2010/11.

The Audit fee letter, which was attached as Appendix A to the report, set out the audit work to be undertaken during the year in relation to the financial statements, the Use of Resources assessment and Value for Money conclusion and certification of grant claims and returns. The Inspection fee letter, which was attached as Appendix B to the report, set out the assessment and inspection work to be undertaken in accordance with the Comprehensive Area Assessment (CAA) framework.

Andrea Castling from the Audit Commission attended the meeting to present the proposals and answer questions.

The total indicative fee for the audit for 2010/11 was £397,500 (exclusive of VAT).  This was based on the Audit Commission’s national fee rate with an uplift of 9% to reflect the inherent audit risk in the Council’s second year of operation. The increase in fee for the financial statement elements of the audit reflected the costs of additional audit work arising from the International Financial Reporting Standards (IFRS). 

The quoted audit fee for 2010/11 exceeded the budget provision by £67,111. The total inspection fee for 2010/11 of £52,225 exceeded the budget provision by £35,725. Both overspends would be met from Council balances.

Members discussed with Andrea Castling the basis for this year’s fees, the prospects for the future and how the Council compared with similar authorities.

RESOLVED

That

(1)   the Audit Commission’s letter on the Annual Audit Fee for 2010/11  be received (Appendix A);

(2)   the Audit Commission’s letter on the Annual Inspection Fee for 2010/11 be received (Appendix B); and

(3)   the proposed work programme, indicative fees and associated budgetary implications be noted.