OS2005 August 23 Rep Minutes of Audit Sub 21 July

AUDIT-SUB COMMITTEE 21 JULY 2005 Present: Councillors Holl (Chairman), Bromell and Hockin Apologies: Councillor Corney, Clatworthy, Fusco and Milton 1. MINUTES The Chairman confirmed the minutes of the Audit Sub-Committee held on 25 April and 9 May 2005, as a correct record. 2. EXTERNAL AUDIT - NEW CODE OF AUDIT PRACTICE The Chairman welcomed Richard Bacon and Huw Thomas as representatives from Price Waterhouse Coopers (PwC), the Council’s external auditors. Mr Bacon reported on areas of particular interest to the Sub-Committee as follows: • The Audit Commission had issued a new Code of Audit Practice that was applicable for the 2005/06 financial year onwards. The new Code reinterpreted the requirement of the Audit Commission Act 1988. • There were now two parts to the work under the new Code. The first part was the audit of accounts. The second part the conclusion of Value For Money arrangements (use of resources). • PwC are now required to adopt International Standards of Auditing in their financial statements audit for 2005/06. • There will be a two-part audit report covering financial statements and conclusions on ‘proper arrangements’ relating to the use of resources. • Reporting will be sharper and timelier, while existing reports would be used for more than one purpose. The aim was to integrate PwC work across Council audit cycles wherever possible. The PwC deadline for the completion of audits for 2005 ...