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Waverley Borough Council Committee System - Committee Document

Meeting of the Executive held on 27/06/2006
APPENDIX B - DISTRICT AUDITOR'S AUDIT AND INSPECTION PLAN 2006/2007



Summary & Purpose
This report outlines the work that the District Auditor intends to undertake in the current financial year. Consideration of his plan forms part of the role of an Audit Committee; in the absence of such a Committee at Waverley, the plan is brought to the Executive for information.

The District Auditor and his senior staff will be present at the meeting and will be able to answer any questions that members may have. Members are invited to study the Plan (which is attached in full to this report) and ask any questions of the District Auditor as they may wish.

APPENDIX B
Waverley Borough Council

EXECUTIVE – 27TH JUNE 2006

Title:
DISTRICT AUDITOR’S AUDIT AND INSPECTION PLAN 2006/07
[Wards Affected: All]

Summary and purpose:

This report outlines the work that the District Auditor intends to undertake in the current financial year. Consideration of his plan forms part of the role of an Audit Committee; in the absence of such a Committee at Waverley, the plan is brought to the Executive for information.

The District Auditor and his senior staff will be present at the meeting and will be able to answer any questions that members may have. Members are invited to study the Plan (which is attached in full to this report) and ask any questions of the District Auditor as they may wish.

Environmental implications:

There are no direct environmental considerations arising from this report, although the District Auditor will consider the achievement of Waverley’s policies and delivery of its services.

Social / community implications:

There are no direct environmental considerations arising from this report, although the District Auditor will consider the achievement of Waverley’s policies and delivery of its services.

E-Government implications:

There are no direct environmental considerations arising from this report, although the District Auditor will consider the achievement of Waverley’s policies and delivery of its services.

Resource and legal implications:

The direct resource implications arise from the District Auditor’s fees for the year. These have been budgeted at 110,000, whereas the proposed fee statement is higher at 124,442. At this stage it is hoped that a variance of this sum can be managed within existing resources. In addition, some work has been commissioned by Waverley at a cost of 4,500; this is to be met from a budget controlled by the Monitoring Officer.

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Introduction

1. In planning the work at Waverley, the District Auditor has to ensure he covers the tasks required by the Audit Commission in accordance with the relevant professional standards. The amount of work he plans to undertake is also influenced by the degree of risk that he considers Waverley’s plans and activities pose. The Plan is attached at Annexe 1.
2. In recognition that changes will influence any plan, the District Auditor reserves the right to amend his Plan (see para. 10 of Annexe 1). Changes may become necessary as a result of his findings, of changes to Comprehensive Performance Assessment (CPA) requirements and any other external influence.

Plan contents

3. The work will again cover the aspects of Council business and governance as contained in the Annual Audit Letter, which is included elsewhere on the agenda. The District Auditor has taken account of the planned restructuring of the Council’s management and services and its work with other agencies e.g. GOSE in respect of Decent Homes Standard.

4. The District Auditor’s objectives have evolved over recent years and are now as follows:
Provide an opinion on the financial statements
Provide a conclusion on the Council’s Use of Resources, including arrangements for securing value for money
Score the Use of Resources judgement which will be used in CPA
Audit performance indicators
Report on the best value performance plan.

5. A new additional task for the District Auditor is work that will be used in the preparation of “whole of government accounts”. This is being introduced by the Government, and bears an additional cost (which is included in the fee of 124,442).

6. A stratified audit regime has been introduced in respect of grant and subsidy claims over the last few years, but Waverley is still advised that total fees for such work will be in the region of 20,000. This is borne out through experience.

7. The voluntary work that has been commissioned by the Monitoring Officer is in connection with ethical standards. Members will be aware of this as it has involved a survey and workshop that have already taken place.

Conclusion

8. The work to be undertaken by the District Auditor will involve considerable time and effort, not only on the part of him and his staff but also Waverley’s members and senior officers. Members are invited to note the work proposals and to seek clarification or debate items as they wish with the District Auditor at the meeting.

Recommendation

It is recommended that the contents of the Plan are noted and debated with the District Auditor.

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Background Papers (DoF)

There are no background papers (as defined by Section 100D(5) of the Local Government Act 1972) relating to this report.


CONTACT OFFICER:

Name: Mr M Hill Telephone: 01483 523240

E-mail: mhill@waverley.gov.uk

Comms/exec/2006-07/051