Issue - meetings

To consider a report on the Audit Commission’s Annual Audit fees for 2011/12. 

The Committee considered a report on the Audit Commission’s Annual Audit fees for 2011/12. Judith Tench and Andrea Castling of the Audit Commission were present to discuss the annual audit letter and fee with Members.

The Audit fee letter, which had been circulated with the agenda, set out the audit work to be undertaken during the year in relation to the financial statements, the Value for Money conclusion, the Whole of Government Accounts return and the certification of grant claims and returns. 

The planned audit fee for 2011/12 was £341,750 (exclusive of VAT). The fee was based on a set scale rather than containing fixed and variable elements and reflected a reduction in fees from 2010/11.

The fee for Cheshire East Borough Council was 5% below the scale fee of £358,650 and was based on an assessment of audit risk and complexity.  This was a reduction from previous years where fees had been set above the scale fee to reflect the audit risks associated with a new authority.

The base budget for audit fees was £330,389. The quoted audit fee for 2011/12 therefore exceeded the budget provision by £11,361. In addition, fees relating to the certification of claims and returns amounted to £97,994. This overspend would be met from Council balances.

In considering the letter, the Committee had regard to the Audit Commission Code of Audit Practice and to the Statement of Responsibilities of Auditors, copies of which were circulated at the meeting.

RESOLVED

That

(1)   the Audit Commission’s letter on the Annual Audit Fee for 2011/12 be received; and

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