Agenda item

A Conlan of Grant Thornton introduced the item, informing the committee that the early interim investigations and early audit tests had been carried out in accordance with the Audit Plan. He was pleased to report that so far no issues had been identified. At the moment months 1 to 9 are being tested.

He then moved on to the Value For Money Risk Assessment that has been carried out and some risk identified around Medium Term Financial Planning, mainly arising out of the challenges surrounding the Efficiency Savings Gap.

Finally he took the committee through the sector update section of the report.

Cllr Tindall drew attention to the general local authorities’ figures set out in the report and asked if there is a set of figures specific to Dacorum. N Howcutt responded that the MTFS and budget report contain stats relevant to Dacorum and that we have a reasonably good idea of where we come in relation to other authorities, and in particular other district authorities. In general Dacorum has a high income proportional to other DA’s and low level of need so in financial terms we may be hit harder in comparison to other authorities, by future changes. Cllr Tindall went on to suggest that to meet our savings targets would require £1.25m over the next two years. N Howcutt stressed that the savings position is under control and the auditor’s report should not be seen as a specific warning to Dacorum.

Cllr Douris observed that we appear to have a 4 year budget Gap and we have a phased resilience budget which should address the issue. He went on to say we are coming to the last year of the government four year plan and asked if anything has been received to suggest that there is another 4 year plan in the offing. N Howcutt responded that nothing has been received though DBC is utilising a list of indicators to try and predict future funding levels..

Cllr Douris then asked the auditors if there had been any evidence of the council’s work provision/position deteriorating and was informed that to date there is no evidence and the council is ‘holding steady’. In this council’s case holding steady is adequate. Cllr Douris asked if the auditors knew of any small step that might be taken to bring improvement. N Howcutt was of the opinion that this council has set quite a high bar but will always continue to seek ways to improve.

Cllr Tindall then raised the issue of business rates and the council’s current terms and conditions perhaps affecting the take up of premises and local businesses. N Howcutt stated rates are set nationally and we are awaiting the government suggesting a national scheme.

Cllr Taylor summed up by saying we know the possible pitfalls ahead; the VFM issue must be addressed; and DBC will seek ways to continue improvement.

Outcome:

The update presented by the External Auditor was noted and they were thanked for the service they provide.