City of Glasgow College - audit-scotland.gov.uk

1 City of Glasgow College External Audit Plan 2017/18 May 2018 Contents Contents .. 2 Introduction .. 1 Respective responsibilities of the auditor and the College .. 3 Audit strategy .. 8 Annual report and accounts .. 10 Wider Scope Audit .. 15 Audit Outputs, Timetable and Fees .. 20 Appendix 1: Your audit team .. 23 Appendix 2: Statement of Understanding .. 24 3 1 Introduction 1 Scott-Moncrieff City of Glasgow College External Audit Plan 2017/18 IntroductionOverview 1. This document summarises the work plan for our 2017/18 external audit of the City of Glasgow College ( the College ). 2. The core elements of our work include: an audit of the 2017/18 financial statements and related matters; a review of arrangements for governance and transparency, financial management, financial sustainability and value for money; and any other work requested by Audit Scotland.

2 Audit appointment 3. The Auditor General for Scotland is an independent Crown appointment, made on the recommendation of Scottish Parliament. The Auditor General is independent and not subject to control of any member of the Scottish Government or the Parliament. The Auditor General is responsible for securing the audit of the Scottish Government and most public bodies in Scotland, as well as reporting on their financial health and performance. 4. Audit Scotland is an independent statutory body that provides the Auditor General with the services required to carry out her statutory functions, including monitoring the performance of auditors through a quality control process. 5. The Auditor General has appointed Scott-Moncrieff as external auditor of the College for the five year period 2016/17 to 2020/21.

3 This document comprises the audit plan for 2017/18 and summarises: the respective responsibilities of Scott-Moncrieff and the College ; our audit strategy; our planned audit work and approach; our proposed audit outputs, timetable and fee; and background to Scott-Moncrieff and the audit team. Confirmation of independence 6. International Standards on Auditing (UK) (ISAs) require us to communicate on a timely basis all facts and matters that may have a bearing on our independence. 7. We confirm that we will comply with Financial Reporting Council s (FRC) Revised Ethical Standard (June 2016). In our professional judgement, the audit process is independent and our objectivity has not been compromised in any way.

4 8. In particular there are and have been no relationships between Scott-Moncrieff and the College , its Board members and senior management that may reasonably be thought to bear on our objectivity and independence. Adding value through the audit 9. All of our clients quite rightly demand of us a positive contribution to meeting their ever-changing business needs. Our aim is to add value to the College through our external audit work by being constructive and forward looking, by identifying areas of improvement and by recommending and encouraging good practice. In this way we aim to help the College promote improved standards of governance, better management and decision making and more effective use of resources.

5 10. Any comments you may have on the service we provide, the quality of our work and our reports would be greatly appreciated at any time. Comments can be reported directly to the audit team or through our online survey: 11. While this plan is addressed to the College , it will be published on Audit Scotland s website 2 2 Respective responsibilities of the auditor and the College 3 Scott-Moncrieff City of Glasgow College External Audit Plan 2017/18 Respective responsibilities of the auditor and the CollegeAuditor responsibilities Code of Audit Practice 12. The Code of Audit Practice (the Code) outlines the responsibilities of external auditors appointed by the Auditor General and it is a condition of our appointment that we follow it.

6 Our responsibilities 13. Auditor responsibilities are derived from statute, the Code, International Standards on Auditing (UK), professional requirements and best practice and cover our responsibilities when auditing financial statements and when discharging our wider scope responsibilities. 14. Our responsibilities under the Code are to: undertake statutory duties, and comply with professional engagement and ethical standards, including International Standards on Auditing; provide an opinion on audited bodies financial statements and the regularity of transactions; review and report on, as appropriate, other information such as annual governance statements, management commentaries and remuneration reports; notify the Auditor General when circumstances indicate that a statutory report may be required.

7 And demonstrate compliance with the wider public audit scope by reviewing and providing judgements and conclusions on the audited bodies : - effectiveness of performance management arrangements in driving economy, efficiency and effectiveness in the use of public money and assets; - suitability and effectiveness of corporate governance arrangements; and - financial position and arrangements for securing financial sustainability. 15. Weaknesses or risks identified by auditors are only those which have come to our attention during our normal audit work in accordance with the Code, and may not be all that exist. Communication by auditors of matters arising from the audit of the financial statements or of risks or weaknesses does not absolve management from its responsibility to address the issues raised and to maintain an adequate system of control.

8 4 Scott-Moncrieff City of Glasgow College External Audit Plan 2017/18 Wider scope audit work 16. The special accountabilities that attach to the conduct of public business, and the use of public money, mean that public sector audits must be planned and undertaken from a wider perspective than in the private sector. This means providing assurance, not only on the annual accounts, but also on the appropriateness, effectiveness and impact of corporate governance, performance management arrangements and financial sustainability projections. 17. The Code sets out four audit dimensions that frame the wider scope audit work into identifiable audit areas. These are summarised below in Exhibit 1.

9 18. Where the application of the full wider scope is judged by us not to be appropriate then our annual audit work on the wider scope is restricted to: Audit work to allow conclusions to be made on the appropriateness of the disclosures in the governance statement; and Consideration of the financial sustainability of the organisation and the services that it delivers over the medium and longer term. 19. Our assessment takes into account the size, nature and risks of the City of Glasgow College . Taking these factors into consideration, we have concluded that we will apply our full wider scope audit responsibilities. The Colleges responsibilities 20. The College has the primary responsibility for ensuring the proper financial stewardship of public funds, compliance with relevant legislation and establishing effective arrangements for governance, propriety and regularity that enable them to successfully deliver their objectives.

10 The College s responsibilities are summarised below in Exhibit 2. Exhibit 1: Audit dimensions of wider scope public audit Financial sustainability Financial sustainability looks forward to the medium and longer term to consider whether the body is planning effectively to continue to deliver its services or the way in which they should be delivered. Financial management Financial management is concerned with financial capacity, sound budgetary processes and whether the control environment and internal controls are operating effectively. Governance and transparency Governance and transparency is concerned with the effectiveness of scrutiny and governance arrangements, leadership and decision-making and transparent reporting of financial and performance information.