Contents
Report 14 of the 14 June 2010 meeting of the Corporate Governance Committee, with the external audit fee from the Audit Commission.
Warning: This is archived material and may be out of date. The Metropolitan Police Authority has been replaced by the Mayor's Office for Policing and Crime (MOPC).
See the MOPC website for further information.
External Audit fee 2010-11 and audit opinion plan
Report: 14
Date: 14 June 2010
By: Treasurer
Summary
The Audit Commission has submitted its proposed fee for 2010-11.
A. Recommendation
That the 2010-11 audit fees be approved.
B. Supporting information
1. The District Auditor has written to confirm the audit work that the Audit Commission proposes to undertake for the 2010/11 financial year at the MPA and MPS. Its fee is based on the risk-based approach to audit planning as set out in the Code of Audit Practice and work mandated by the Audit Commission for 2010/11; and reflects only the audit element of its work, excluding any inspection and assessment fees.
2. As the audit for 2009/10 has not yet been completed, the audit planning process for 2010/11, including the risk assessment, will continue as the year progresses and fees will be reviewed and updated as necessary.
3. The total indicative fee for the audit for 2010/11 is £516,000, which is the same as the planned fee for 2009/10 (appendix 1).
4. The Audit Commission’s published fee scale for 2010/11 included a 6% increase to cover the costs of additional audit work arising from the introduction of International Reporting Standards. However in July 2009, in recognition of the financial pressures that public bodies are facing in the current economic climate, the Commission agreed to subsidise the 'one-off' element of the cost of transition to International Financial Reporting Standards (IFRS) for local authorities and police and fire and rescue authorities from 2010/11. Accordingly the Authority was refunded £22,963 in April 2010.
5. In addition the Audit Commission will absorb the cost of the additional audit procedures needed in relation to changes in International Auditing Standards for 2010/2011.
6. Also attached is the Audit Opinion Plan for 2009/10 which updates the earlier 2009/10 overall audit plan and confirms that the Audit Commission do not consider the risk environment to have changed sufficiently to warrant a change to the original 2009/10 audit fee (appendix 2).
C. Race and equality impact
There are no direct implications on equalities and diversity arising from this report.
D. Financial implications
None arising directly from this report. The 2010-11 audit fee can be met from within existing MPA budget.
E. Legal implications
None given.
F. Background papers
- None
G. Contact details
Report author: Annabel Adams – Deputy Treasurer
For information contact:
MPA general: 020 7202 0202
Media enquiries: 020 7202 0217/18
Supporting material
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