To present to the Audit and Governance Committee the key areas of the auditor risk assessment in order to make enquiries of the Committee under auditing standards.

Grant Thornton presented the report which sets out a series of standard questions for governance. The council’s responses regarding key controls are satisfactory and these are presented to the committee for oversight.

In response to a question from the Chairman, Grant Thornton confirmed that the responses from the council regarding risks around fraudulent transactions and relationships with providers were satisfactory.

In answer to member’s question regarding the robustness of capital borrowing offset against generating finance from sale of assets, Grant Thornton clarified that assumptions would be in the financial plan when it is produced and that assets are valued on a 5-year rolling cycle. Herefordshire is compliant with this rule. It was noted that market fluctuations need to be taken into account in valuations.

A member requested that future reports are in clear language to enable understanding.

The Chairman thanked the representatives from Grant Thornton for their work in producing the reports presented to the Committee today.

RESOLVED:

that the report be noted.