Issue - meetings

2.10pm

A representative from the external auditors, Ernst & Young, will attend to present the following items:

·         OCC Audit Planning Report 2017/18

·         Oxfordshire Pension Fund Audit Planning Report 2017/18

The reports were noted.

Mr King introduced the reports.  In particular, he drew attention to the reference to the risk of management override on page 5 of the Agenda and assured the Committee that it did not imply any specific concerns about the integrity of management at the Council.  The other risks included in the Audit Plan, including the valuation of land and buildings and the valuation of the Pension Scheme liabilities, were normal where there were large figures in the balance sheet and a high degree of estimation and valuation.

The earlier deadline for completion of accounts is also recorded as a risk.  Ms Baxter stated that the accounts had been prepared to the earlier deadline last year in preparation for it becoming statutory this year.  She was confident that the deadlines would be met.

The Council’s termination of the contract with Carillion and the handling of Carillion’s liquidation are referenced under Value for Money Risks.  Councillor Roz Smith stated that she and other councillors had suggested the inclusion of a break clause in the contract with Carillion.

The Pension Fund plan is similar.  There is an additional risk highlighted in relation to the change of custodian.

Mr King responded to questions from Members as follows:

·         with regard to the financial difficulties of Northamptonshire County Council, EY have never had to issue a qualified audit report about a Local Authority with regard to going concern.  But it has included an emphasis of matter paragraph in the audit reports of some hospital trusts referring to disclosures in the accounts about going concern (although an emphasis of matter paragraph is not a qualification of the true and fair opinion).

·         the Pension Fund deficit looks like a very large number but the nature of pension fund liabilities are that they only fall due over many years.

The reports were noted.