Home > Your Council > Decision details





Decision details

Annual Audit and Certification Fees 2018/19 - Ernst & Young, External Auditors

Decision Maker: Audit Committee

Decision status: Information Only

Is Key decision?: No

Is subject to call in?: No

Decisions:

The External Audit Manager, Ernst & Young, reported on the Annual Audit and Certification Fees letter for 2018/19.

 

As part of the Public Sector Audit Appointments Ltd (PSAA) scheme, set up after the Local Audit and Accountability Act 2014, it had been agreed that Ernst & Young would be the appointed External Auditor for Hertsmere Borough Council for the five year period of 2018/19 to 2022/23.

 

They noted that the indicative fees had been reduced by over 20% from 2017/18 and this reflects the risk-based approach to audit planning set out in the National Audit Office’s Code of Audit Practice and would cover:

  • Audit of the financial statements.
  • Value for money conclusion.
  • Whole of Government accounts.

 

This was based partly on there being no significant changes year on year and the level of controls and assurances already in place.

 

The Committee noted the indicative fee the Council would be charged for Ernst & Young to undertake the year-end audit for 2018/19 of £38,012 and the planned audit fee for 2017/18 of £49,366.

 

The planned fee for 2017/18 for the certification of housing benefit subsidy claim was noted to be £24,170 however there had been some extended testing necessary this year, which would incur additional cost.  For 2018/19 these certification works no longer fall under the PSAA scheme however the Council had separately appointed Ernst & Young to undertake these works for the same five year period as their PSAA appointment. The planned fee for these certification works for 2018/19 was noted as £13,284.

 

It was also noted that the Council group accounts would incur an additional fee.

 

The 2018/19 Audit Plan would be issued by Ernst & Young early in 2019 and would provide a statement on any significant risks identified and the planned audit procedures to deal with those risks.

 

RESOLVED that:

 

1)    the Annual Audit and Certification Fees for 2017/18 and 2018/19, set out in the Ernst & Young letter, report A/18/09, be noted.

 

2)    the presentation of the Audit Plan for 2018/19 to the Committee in January 2019, be noted.

Report author: Matthew Bunyon, Kay Storey

Publication date: 20/06/2018

Date of decision: 31/05/2018

Decided at meeting: 31/05/2018 - Audit Committee

Accompanying Documents: