Agenda Item No. 7

The Vale of Glamorgan Council

Audit Committee: 1st May 2018

Report of the Managing Director

External Audit Plan 2018

Purpose of the Report

1. To present the Council's External Audit Plan 2018 which is produced annually by the Wales Audit Office.

Recommendation

1. That Audit Committee consider the External Audit Plan for 2018 and refer any observations to Cabinet for approval.

Reason for the Recommendation

1. To progress the External Audit work programme and to ensure that robust scrutiny of the External Audit Plan takes place.

Background

2. The Auditor General Wales is required to carry out an audit which discharges its statutory duties and fulfils its obligations under the Public Audit (Wales) Act 2004, the Local Government (Wales) Measure 2009, the Local Government Act 1999 and the Code of Audit Practice. This involves:

• Examination and certification of the Council's financial statements to ensure they are 'true and fair';
• Assessment of the Council's arrangements for securing economy, efficiency and effectiveness in the use of resources;
• Audit and assessment of whether the Council has discharged its duties and met requirements of the Measure; and
• Bespoke pieces of work aimed at enabling the Council to make improvements in economy, efficiency and effectiveness or financial or other management practices.

3. The External Audit Plan 2018 outlines work to be undertaken in the Council during the period April 2018 to March 2019 by and on behalf of the Auditor General.

Relevant Issues and Options

4. A copy of the External Audit Plan is attached at Appendix 1. Key highlights are as follows:

• To issue a certificate and report on the Council's financial statements which includes an opinion on their "truth and fairness".  Whether the Council has made proper arrangements for securing economy, efficiency and effectives in its use of resources and report by exception if the Annual Governance Statement does not comply with requirements.
• To audit / independently examine the Joint Committee arrangements which are hosted by the Council, these being Shared Regulatory Services and Adoption Service.  In addition an independent examination of the Welsh Church Act Fund will be undertaken in accordance with timescales agreed with the Council and the Charity Commission.
• A programme of performance audit work will be undertaken as outlined in Exhibit 4 within the report.

Resource Implications (Financial and Employment)

5. The proposed fees for work associated with the External Audit Plan 2018, is £261,356. There is an additional fee of £50,000 for the grant certification work which is estimated and is invoiced as the work is undertaken and an estimated fee of £14,374 for the Joint Committee and Welsh Church Act audit work. 

Sustainability and Climate Change Implications

6. None directly from this External Audit Plan.

Legal Implications (to Include Human Rights Implications)

7. The Council has a duty to improve under the Local Government (Wales) Measure 2009 (as amended from time to time) and the Local Government Act 1999.

Crime and Disorder Implications

8. None directly from this External Audit Plan.

Equal Opportunities Implications (to include Welsh Language issues)

9. None directly from this External Audit Plan.

Corporate/Service Objectives

10. This report is consistent with the Council's corporate objectives to ensure effective management of resources.

Policy Framework and Budget

11. The proposals in this report do not contravene the policy framework and budget.

Consultation (including Ward Member Consultation)

12. No further consultation is proposed.

Relevant Scrutiny Committee

13. Corporate Performance and Resources

Background Papers

Appendix 1: Vale of Glamorgan Audit Plan 2018

Contact Officer

Carys Lord - Head of Finance / Section 151 Officer

Officers Consulted

Head of Performance and Development

Operational Manager - Audit

Responsible Officer:

Rob Thomas, Managing Director