Issue - meetings

(a)       That the proposed WAO Regulatory Programme for Performance Audit 2014-15 be noted; and         

(b)       That the reduction in fees be noted. 

The Chief Executive introduced a report on the proposed Regulatory Programme for Performance Audit for the Wales Audit Office (WAO) for the period 2014-15 and the reduction in fees for the performance and financial audit work programme. 

                        The performance audit work for 2014-15 was detailed along with the fees for the work which was an indicative total fee of £320,394.  Mr. Goodlad from Wales Audit Office explained that the performance audit work fee was 9.4% lower than for 2013-14 and the Local Government fee had also reduced by 5.4%.  A refund of 15% of the 2013/14 audit fees was due to the Council because of a change in the WAO governance and the WAO no longer being able to generate reserves; this figure would be confirmed shortly.  He added that the largest piece of regulatory work to be undertaken in 2014/15 was the corporate assessment which would include observing meetings.  He explained that the Council would receive a certificate in place of the two letters which would include an explanation of whether the Council was fulfilling its statutory requirement. 

                        In response to a query from Councillor Clive Carver about the last bullet point on page 59, Mr. Goodlad confirmed that the WAO could no longer charge VAT on Local Government work and as the fee must cover the costs, a corresponding increase in fees of an average of 3.8% has been introduced.  Councillor Robin Guest queried this as he would have expected a reduction in fees, not an increase.  He also said that the report indicated that the fee would be over a 12 month period and asked when it would be carried out and reported.  The Chief Executive reminded Members that the change was as a result of a VAT ruling by Her Majesty’s Revenue and Customs following the reform of the governance of WAO under new legislation.  Councillor Andy Dunbobbin felt that the paragraph following the last bullet point on page 59 provided assurance on the issue. 

                        Councillor Richard Jones felt that any informal letters should be made available to the Committee to assist with scrutiny and in response, Mr. Goodlad said that he would liaise with the Chief Executive and the Policy and Performance Manager on timescales of when each piece of work would be delivered.  He confirmed that the certificate referred to earlier would not provide the Council with the level of detail previously provided but a way of informing the Authority of any significant issues would be discussed.  Councillor Jones suggested that a representative from the WAO attend Committee meetings when the letters would have been received to allow the Members to receive information on the detail before the certificate was issued and to allow their comments and questions to be considered. 

            RESOLVED:

(a)       That the proposed WAO Regulatory Programme for Performance Audit 2014-15 be noted; and         

(b)       That the reduction in fees be noted.