Mike Thomas, District Auditor, presented the Audit Commission Annual Audit Letter, which summarised the findings from the 2008/2009 audit in respect of Wirral Council and the Merseyside Pension Fund. It included messages arising from the audit of financial statements and the results of the work undertaken to assess arrangements to secure value for money in the use of resources. He had issued an unqualified opinion on the Council’s financial statements and on the Pension Fund accounts on 30 September 2009. He had also issued an unqualified value for money conclusion, which stated that the Council had adequate arrangements to secure economy, efficiency and effectiveness in its use of resources in 2008/2009. The Use of Resources judgement was based on the same Key Lines of Enquiry (KLOE) as the value for money conclusion and he had also completed a number of reviews to inform the conclusion that the Council was performing adequately against the standards specified by the Audit Commission – level 2 performance.

RESOLVED:

(1)  That the report be noted.

(2)  That Cabinet thanks the Audit Commission for this Annual Audit and Inspection Letter and resolves that the authority should continue to work with the district auditor to continue to ensure high standards of financial management within the organisation.

The District Auditor presented the Audit Commission Annual Audit Letter, which summarised the findings from the 2008/2009 audit in respect of Wirral Council and the Merseyside Pension Fund. It included messages arising from the audit of financial statements and the results of the work undertaken to assess arrangements to secure value for money in the use of resources. He had issued an unqualified opinion on the Council’s financial statements and on the Pension Fund accounts on 30 September 2009. He had also issued an unqualified value for money conclusion, which stated that the Council had adequate arrangements to secure economy, efficiency and effectiveness in its use of resources in 2008/2009. The Use of Resources judgement was based on the same Key Lines of Enquiry (KLOE) as the value for money conclusion and he had also completed a number of reviews to inform the conclusion that the Council was performing adequately against the standards specified by the Audit Commission – level 2 performance.

He commented also upon the Comprehensive Area Assessment and referred to other risk based work on two PIDA disclosures in respect of Adult Social Services and the process for the award of the Highways and Engineering Services Procurement Exercise (HESPE) contract.

In response to comments from Members in relation to the audit fees, the District Auditor indicated that although the fee proposed for Wirral in 2009/2010 was 13% above the scale fee, it represented a net reduction of 4.1% from the 19% above scale fee in 2008/2009 and auditors continued to work with Council officers to further reduce the fees.

Resolved –

(1)  That the report be noted.

(2)  That a report be presented to the next meeting of the Committee upon action required to be taken by the authority to further reduce the audit fee.