INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF CANTERBURY

CITY COUNCIL

We have audited the financial statements of Canterbury City Council (the "Authority")
for the year ended 31 March 2017 under the Local Audit and Accountability Act 2014
(the "Act"). The financial statements comprise the Comprehensive Income and
Expenditure Statement, the Balance Sheet, the Movement in Reserves Statement,
the Cash Flow Statement, the Housing Revenue Account Income and Expenditure
Statement, the Movement on the Housing Revenue Account Statement, the
Collection Fund and the related notes. The financial reporting framework that has
been applied in their preparation is applicable law and the CIPFA/LASAAC Code of
Practice on Local Authority Accounting in the United Kingdom 2016/17.

This report is made solely to the members of the Authority, as a body, in accordance
with Part 5 of the Act and as set out in paragraph 43 of the Statement of
Responsibilities of Auditors and Audited Bodies published by Public Sector Audit
Appointments Limited. Our audit work has been undertaken so that we might state to
the Authority’s members those matters we are required to state to them in an
auditor's report and for no other purpose. To the fullest extent permitted by law, we
do not accept or assume responsibility to anyone other than the Authority and the
Authority's members as a body, for our audit work, for this report, or for the opinions
we have formed.

Respective responsibilities of the Director of Resources and auditor

As explained more fully in the Statement of Responsibilities, the Director of

Resources is responsible for the preparation of the Statement of Accounts, which
includes the financial statements, in accordance with proper practices as set out in
the CIPFA/LASAAC Code of Practice on Local Authority Accounting in the United
Kingdom 2016/17, which give a true and fair view. Our responsibility is to audit and
express an opinion on the financial statements in accordance with applicable law, the
Code of Audit Practice published by the National Audit Office on behalf of the
Comptroller and Auditor General (the “Code of Audit Practice”) and International
Standards on Auditing (UK and Ireland). Those standards require us to comply with
the Auditing Practices Board’s Ethical Standards for Auditors.

Scope of the audit of the financial statements

An audit involves obtaining evidence about the amounts and disclosures in the
financial statements sufficient to give reasonable assurance that the financial
statements are free from material misstatement, whether caused by fraud or error.
This includes an assessment of whether the accounting policies are appropriate to
the Authority’s circumstances and have been consistently applied and adequately
disclosed; the reasonableness of significant accounting estimates made by the
Director of Resources; and the overall presentation of the financial statements. In
addition, we read all the financial and non-financial information in the Narrative
Report, and the Annual Governance Statement to identify material inconsistencies
with the audited financial statements and to identify any information that is apparently
materially incorrect based on, or materially inconsistent with, the knowledge acquired
by us in the course of performing the audit. If we become aware of any apparent
material misstatements or inconsistencies we consider the implications for our report.
Opinion on financial statements

In our opinion:
 the financial statements present a true and fair view of the financial position
of the Authority as at 31 March 2017 and of its expenditure and income for
the year then ended; and
 the financial statements have been prepared properly in accordance with the
CIPFA/LASAAC Code of Practice on Local Authority Accounting in the United
Kingdom 2016/17 and applicable law.

Opinion on other matters

In our opinion, the other information published together with the audited financial
statements in the Narrative Report and the Annual Governance Statement for the
financial year for which the financial statements are prepared is consistent with the
audited financial statements.

Matters on which we are required to report by exception

We are required to report to you if:

 in our opinion the Annual Governance Statement does not comply with the
guidance included in ‘Delivering Good Governance in Local Government:
Framework (2016)’ published by CIPFA and SOLACE; or
 we have reported a matter in the public interest under section 24 of the Act in
the course of, or at the conclusion of the audit; or
 we have made a written recommendation to the Authority under section 24 of
the Act in the course of, or at the conclusion of the audit; or
 we have exercised any other special powers of the auditor under the Act.

We have nothing to report in respect of the above matters.

Conclusion on the Authority’s arrangements for securing economy, efficiency

and effectiveness in its use of resources

Respective responsibilities of the Authority and auditor

The Authority is responsible for putting in place proper arrangements for securing
economy, efficiency and effectiveness in its use of resources, to ensure proper
stewardship and governance, and to review regularly the adequacy and effectiveness
of these arrangements.

We are required under Section 20(1)(c) of the Act to be satisfied that the Authority
has made proper arrangements for securing economy, efficiency and effectiveness in
its use of resources. We are not required to consider, nor have we considered,
whether all aspects of the Authority's arrangements for securing economy, efficiency
and effectiveness in its use of resources are operating effectively.
Scope of the review of the Authority's arrangements for securing economy,
efficiency and effectiveness in its use of resources

We have undertaken our review in accordance with the Code of Audit Practice,
having regard to the guidance on the specified criteria issued by the Comptroller and
Auditor General in November 2016, as to whether the Authority had proper
arrangements to ensure it took properly informed decisions and deployed resources
to achieve planned and sustainable outcomes for taxpayers and local people. The
Comptroller and Auditor General determined this criteria as that necessary for us to
consider under the Code of Audit Practice in satisfying ourselves whether the
Authority put in place proper arrangements for securing economy, efficiency and
effectiveness in its use of resources for the year ended 31 March 2017.

We planned our work in accordance with the Code of Audit Practice. Based on our
risk assessment, we undertook such work as we considered necessary to form a
view on whether in all significant respects the Authority has put in place proper
arrangements for securing economy, efficiency and effectiveness in its use of
resources.

Conclusion

On the basis of our work, having regard to the guidance on the specified criteria
issued by the Comptroller and Auditor General in November 2016, we are satisfied
that in all significant respects the Authority put in place proper arrangements for
securing economy, efficiency and effectiveness in its use of resources for the year
ended 31 March 2017.

Certificate

We certify that we have completed the audit of the financial statements of the
Authority in accordance with the requirements of the Act and the Code of Audit
Practice.

Sarah L Ironmonger

Sarah Ironmonger
for and on behalf of Grant Thornton UK LLP, Appointed Auditor

2nd floor, St Johns House

Haslett Avenue West
Crawley
RH10 1HS

26 September 2017