Contact: Jenny Heath, ext 7402

With the concurrence of the Chairman, under Section 100 (B) (4) (b) of the Local Government Act 1972, this matter is included on the agenda to enable the County Council to respond formally to the Annual Audit and Inspection Letter and statutory recommendation from the District Auditor within the required period.

1. Summary

1.1 This report highlights the main findings of the District Auditor's Annual Audit and Inspection Letter in relation to the audit of accounts for 2001/02, the financial aspects of corporate governance and performance management. The report includes the County Council's response to a statutory recommendation by the District Auditor in relation to the processes for collecting performance indicator data.

1.2 The following decisions were taken :

1 That the District Auditor's comments be welcomed and that the County Council addresses those issues highlighted in the Audit and Inspection Letter over the coming year.

2 That the County Council's response to the statutory recommendation in relation to the collection of data for performance indicators, as detailed in paragraph 10.3 of the report, be endorsed.

2. Reason for the recommendations

The County Council is required formally to respond to the annual management letter and statutory recommendation from the District Auditor.

3. Other options considered and rejected

Not applicable

4. Conflicts of interest declared by the decision maker, or member, or officer consulted

Not applicable

5. Dispensation granted by the Standards Committee

Not applicable

6. Reason(s) for the matter being dealt with if urgent

A response to the statutory recommendation is required by 12 February 2003, 30 working days from the publication of the report on 31 December 2002.

Approved by: (signature) Date: (date of decision)

Councillor T K Thornber, CBE