Agenda item

The Committee received a report from the External Auditor explaining the scope of the audit, the risks identified and the procedures that will be performed to deliver the audit for Durham County Council (for copy see file of Minutes).

Mr J Collins, Mazars advised of the significant risks, value for money and the fees charged and the approach taken to materiality setting.

With regards to the reduction in fees Councillor Shuttleworth asked if this was in connection to the office rental by Mazars at Salvus House.  Mr Kirkham, Mazars explained that the reduction in fees followed an extensive competitive procurement exercise when Public Sector Audit Appointments replaced the Audit Commission.  Mr Kirkham explained that in relation to the renting of office space, Mazars been open and honest about Durham County Council being their landlord and assured members that this did not affect their independency and that appropriate arrangements were in place.

Mr Robinson queried the likelihood of any of the significant risks occurring and what the authority was doing to bring these risks down.  Mr Kirkham assured the Committee that any gaps or defects would be reported but that some of the risks were inherent.

Following on from this point Mr Rudd asked if the reduction in fees would also mean a reduction in the services provided and more reliance on the Internal Audit Service.  Mr Kirkham said that they were still providing the same level of service but were more streamlined in their approach.  He added that their work was regulated and therefore there was very limited opportunity to carry out less work unless there was a risk assessed rationale for this.

Resolved:

That the report be noted.