Agenda item

WAO - Audit Plan

To consider the Audit Plans for both the Financial Statements and Pension Fund.

Minutes:

Documents:

·         WAO 2017 Audit Plan - Powys County Council

·         WAO 2017 Audit Plan – Powys Pension Fund

 

Discussion:

·         The documents detail the legislative requirements, timetable and WAO fees together with the responsibilities of both the WAO and the Council

·         Details of risks were identified together with the proposed audit response

·         The detail regarding certification of grant claims and returns was in the process of being finalised but it was expected that a similar fee to that charged in 2015/16 would apply

·         It was noted that the estimated fee would be reduced by 8.1% and not as detailed in the original report.  An amendment was circulated to the Committee via email during the meeting.

·         Details of the proposed performance audit were given.  The WAO seek to provide assurance of improvement particularly in light of the austerity that all authorities were dealing with.  The Local Government Measure was still in place whilst local government reform was under consideration and the WAO would monitor statutory requirements under the Measure.  This work would also cover assessment of the Authority’s progress in implementing the Wellbeing of Future Generations Act –this would lead to more detailed work in future years.

·         Local risk based work would also be undertaken and it was expected that this would include Highways, Transport and Recycling as it modernises.

·         The WAO drew Members’ attention to the controls that had been included to ensure that one officer of the WAO, who had a potential conflict of interest with regards Adult Social Care, would not be involved in any aspect of auditing Adult Social Care.  After some debate, Members were satisfied that this was appropriate.

·         Last year’s Statement of Accounts would need to be restated in accordance with new requirements

·         The level of materiality will be reported in due course.  The trivial level would be set at 5% of materiality which, based on last year’s Statements would be less than £205K.  This would be less than £250K with regard to the Pension Fund.

·         Members’ attention was drawn to a key risk relating to the changes of Heads of Service as this represented a material risk by nature rather than value.

·         The appropriateness of journal entries would also be considered together with any significant transactions outside normal business trends to ensure there had been no management override

·         The third thematic review regarding Transformation, identified last year, was currently being scoped and would commence in May 2017

·         The WAO were asked what the future of auditing pension funds across Wales would be in light of pooled pension fund arrangements.  The WAO responded that it was too early to have any detail but each Authority would continue to hold a Pension Fund account which would still be subject to audit.  The WAO would endeavour to avoid duplication when auditing of the pooled arrangement was determined.

·         The Committee sought assurance that staffing levels and continuity were adequate in the light of difficulties encountered in previous years.  Although there were no absolute guarantees the greater proportion of the WAO team were the same as last year with some new officers.  Where accounts overlap or similar information is required the Team will ensure that there is no duplication and will aim that one Auditor will consider any overlap areas.  A further question was put regarding the frequency with which Team members were refreshed to ensure that over familiarity did not become an issue.  The WAO noted that a balance between continuity and rotation needed to be made and that policies were in place to ensure this happened.

·         The WAO were asked if the level of sampling would be the same – this was likely, but dependent on what emerges and at what risk level

·         The Committee were concerned that a number of baselines set within the Wellbeing of Future Generations Act were out-with the Authority’s control – WAO activity would be restricted to those areas where they would have an impact.

 

Outcomes:

·         The proposed Audit Plans were noted

Supporting documents: