Agenda item

The Committee received a report from the District Auditor, Mr Chris Westwood, on the Audit Commission’s progress in delivering its responsibilities as external auditors to the Authority. The report also highlighted emerging national issues and developments of interest to Members. The Committee was informed about the Audit Commission’s abolition and the outsourcing of its functions to private firms. Local Authorities would be expected to appoint external auditors under the new arrangements.

In the ensuing discussion, it was noted that the decision to replace the Audit Commission was part of the coalition government’s Localism agenda, which would allow local authorities further powers in choosing the services they used. Members were informed that the government’s view was that this move would drive down costs for local authorities. The Chair queried the standard of service that would be expected under the new arrangements. It was explained by the Audit Commission that private firms would operate the most rigorous processes when carrying out their services and would be subject to contracts and agreements to ensure standards remained high.

Also discussed were the key considerations proposed by the Audit Commission for the Committee to regard. It was proposed by the Strategic Director for Resources and Regeneration that in order to make the Commission’s considerations more relevant, the Audit Committee’s Terms of Reference would need to be revised. It was requested that these be amended and forwarded to the Member Panel on the Constitution and full Council for approval.

Resolved:- That the Audit Committee update be noted and for the Terms of Reference to be amended and forwarded to the Member Panel on the Constitution and full Council for approval.