Agenda item

Sue Exton, District Auditor, Audit Commission introduced the report. She said that members had requested to be informed of the arrangements that would be put in place to ensure that the 2011/12 Audit report would be delivered on time. She drew members attention to a list of things the Executive Director for Resources and Regeneration and her team, and the External Auditors had agreed following a meeting to ensure the process goes smoothly.

Sue Exton added that as a result of additional work that the External Auditors had to do the Council was charged extra fees. She said the Interim Audit was underway and would be completed by the next Audit Panel meeting. Sue Exton said that they were meeting with the Resources team regularly to monitor progress against the final accounts closedown plan. These meetings would ensure that potential problems would be flagged up earlier in the process, and would give parties time to deal with them. It was noted that the value for money conclusion should be completed within the next few months. 

Geoffrey Banister, Audit Manager informed members that Lewisham received income from grant paying Departments and the Audit Commission had to review and certify  them. He added that there were conditions attached to these grants and the Council has to show that they have met these conditions otherwise the funding would be at risk. He informed the Panel that there had been some reduction in the number of grant claims that needed to be certified for the Council.

Councillor Mallory asked why the fees charged for this year’s grant claims were £30k higher than last year’s even though the number of claims had dropped. It was noted that there were a number of slippages and delays in the paperwork, caused by  government departments. Geoffrey Banister informed members Geoffrey Banister, Audit Manager informed members that Lewisham received income from grant paying Departments and the Audit Commission had to review and certify  them. He added that there were conditions attached to these grants and the Council has to show that they have met these conditions otherwise the funding would be at risk. He informed the Panel that there had been some reduction in the number of grant claims that needed to be certified for the Council.

Councillor Mallory asked why the fees charged for this year’s grant claims were £30k higher than last year’s even though the number of claims had dropped. It was noted that there were a number of slippages and delays in the paperwork, caused by  government departments. Geoffrey Banister informed members that he had done a successful workshop for grant officers last Spring and would be doing the same this year.

Sue Exton informed the Panel that following plans for the Audit Commission’s work to be externalised, they would be transferring to Grant Thornton (UK) LLP, from 1 November 2012. She added that the Code of Practice would remain the same and the 2011/12 accounts would be completed under the current Audit practice. Councillor Mallory said he was concerned that fees had continued to go up even when budgets were being cut. He asked whether the Council would have a chance to examine the service they have been provided to ascertain whether it was getting value for money. Sue Exton informed the Panel that the fees would continue to be set by the Audit Commission, but under the new contract fees would likely go down by about 40%. She added that the 2011/12 fees were reduced by 10% and there would be a further rebate. Councillor Mallory requested that the ‘how to’ guide for Chairs and Board members of public bodies be circulated to Panel members. It was agreed that this guide together with the practical guide on how to undertake effective pay benchmarking would be circulated to Panel members.

RESOLVED that the progress report be noted.