To consider external audit’s findings from the annual audit of accounts.

Note: This report will be sent “to follow” as soon as practicable.  It will be published as a supplement to the agenda, and will be available on the Council’s website after publication of the main agenda.   

[Note: In order to further the efficient transaction of business, the Chairman agreed to consider agenda item 6 (Statement of Accounts) first, this agenda item second, and an additional agenda item (Community Governance Review – Ross-on-Wye) last.] 

The Director of Grant Thornton UK, the Council’s appointed external auditor, presented the report in respect of the audit findings from the annual audit of the Council’s annual accounts.  In addition, he tabled the Audit Opinion at the meeting.  He added that, although the Opinion had been given, the accompanying Certificate would be temporarily withheld pending the receipt of a potential objection from a member of the public, who had notified him that it would be submitted later in the week.   He reported that, overall, the draft accounts were of a good standard, and were a clear improvement on the previous year due to the Council’s robust review of quality.

The following points were made during the ensuing discussion on the Audit Finding Report:

·         In respect of Section 3 of the report (Value for Money), it was noted that the Council faced a particular challenge in relation to recovering its overspend, especially in the light of its economies of scale as a smaller authority.  It was important to consider which of the Council’s services would be prioritised for 2014/15, with the high costs of Adult Social Care being of foremost concern.  The Director added that the move to bring Adult Social Care Services in-house was positive, and was likely to achieve savings in line with other authorities who had taken similar action. 

·         The Committee welcomed the continued involvement of the Overview and Scrutiny Committees in overseeing the budget, and seeking regular assurance from the budget monitoring representatives.

·         Members requested that updates on the budget action plan, and identified risks, be considered at all of its meetings.

RESOLVED:  That         

(a)     the external audit findings and action plan for Herefordshire Council dated 31 March 2013, be noted; and

(b)     an updated action plan and identified risks be considered by the Audit and Governance Committee at every meeting, along with a management response in respect of each point on the plan.