Agenda item

(To receive a report from Mazars LLP, the County Council's and Pension Fund External Auditors, giving an update on the 2018/19 Audit Strategy and deliverables)

Consideration was given to a report by Mike Norman (Senior Manager, Mazars), which provided an update on the 2018/19 Audit Strategy and deliverables.  The draft External Audit Strategy Memorandum for Lincolnshire County Council – 2018/19; and the draft External Audit Strategy Memorandum for Lincolnshire Pension Fund – 2018/19 were detailed at Appendices A and B to the report.

The Senior Manager of Mazars presented the appendices to the Committee and highlighted that the purpose of the draft external audit strategy documents was to summarise Mazar's audit approach; to highlight significant audit risks and areas of key judgements; and to provide details of Mazar's Audit Team. 

Consideration was given to Appendix A (External Audit Strategy Memorandum for Lincolnshire County Council – 2018/19).  Members were provided with an opportunity to ask questions, where the following points were noted: -

·         Reference was made to the summary risk assessment, as detailed in a table on page 29 of the report, which highlighted those risks that were deemed to be significant or enhanced.  It was advised that although Risk 3 – Revenue recognition had been identified as having a low financial impact and low likelihood, the risk would remain as a feature in Mazar's report.  It was highlighted that under the International Standard on Auditing (ISA) 240, there was a presumed risk that revenue may be misstated owing to improper revenue recognition.  Mazar's planned response was outlined on page 31 of the report.  It was recognised that this would be of a more increased risk in the commercial sector, rather than in local authorities, however it was prudent to monitor this;

·         It was confirmed that the Council's draft Statement of Accounts would be considered by the Committee at its meeting on 17 June 2019 and the final Statement of Accounts for Lincolnshire County Council for the year ended 31 March 2019 at the meeting on 22 July 2019. 

Consideration was given to Appendix B (External Audit Strategy Memorandum for the Lincolnshire Pension Fund – 2018/19).  Members were provided with an opportunity to ask questions, where the following points were noted: -

·         Reference was made to the summary risk assessment, as detailed in a table on page 50 of the report, which highlighted those risks that were deemed to be significant or enhanced;

·         The framework for how Mazar's would liaise with Border to Coast Pensions Partnership Ltd, of which Lincolnshire was a partner, was yet to emerge.  However, there would be a need to share information on risks;

·         It was confirmed that the Council's Pension Committee was responsible for the approval of the investment strategy for the pension fund.  It was also advised that the Lincolnshire Pension Board scrutinised the activities of the Committee.  Members of the Pension Committee were required to undertake relevant training before being able to sit on the Committee.

RESOLVED

That the content of the draft External Audit Strategy Memorandum for Lincolnshire County Council – 2018/19; and the draft External Audit Strategy Memorandum for Lincolnshire Pension Fund – 2018/19 be supported.