Agenda item

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

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

Councillor Robinson noted that judgements in respect of fair value measurements of unquoted equity investments had been assessed as being enhanced risks.  The Member was informed that in accordance with the Chartered Institute of Public Finance and Accountancy Code of Practice the Council was required to value assets based on current use. When assets were marketed, this was reflected in the financial statements. Councillor Robinson asked for information on the tender process for the sale of assets, in particular in relation to arrangements in respect of tenders received below market value. The Member was informed that this would be referred to Corporate Property and Land for response. Following a question from Councillor Temple, Mr Kirkham stated that the basis of property valuation was critically reviewed by external auditors because of the potential for financial mis-reporting. Mazars did not look at ethical risks, although it was noted by the Corporate Director of Resources that financial and moral risks were linked, and that the Council’s control procedures and framework within which assets were valued were key to mitigating risks.

Resolved:

That the external auditor’s strategy for the year ended 31 March 2020, be noted.