Decision status: Recommendations Approved
Is Key decision?: No
Is subject to call in?: No
The Committee received correspondence from the Public Sector Audit Appointments Ltd (PSAA) advising the Council that the audit scale fees for the Audit 2020/21, to be undertaken by Grant Thornton would be £126,930, which was at the same level as that set for 2019/20. It was noted that significant financial failures in the private sector (i.e. the collapse of Carillion), more recently the impact of Covid 19, and the resulting pressures on local authorities finances, has led to an expectation that audits need to be more challenging. Therefore, audit firms were finding it difficult to deliver the level of audit work to the standard that was now necessary within the fee envelope previously agreed. As a consequence of the above, the PSAA had approved the increase in the fees for the audit.
In response to Members questions seeking an explanation of the process involved in relation to determining the scale of audit fees, Members were advised that in common with many local authorities the Audit Committee had discharged this function through the appointment of external auditors to the PSSA. Therefore, the Council did not have the ability to have any influence on the fee rate.
RESOLVED that the proposed scale of audit fees for the Council’s 2020/21 Accounts and update on 2019/20, be noted.
Publication date: 18/11/2020
Date of decision: 17/06/2020
Decided at meeting: 17/06/2020 - Audit Committee