Issue - meetings

To consider a report of Deputy Chief Executive.

Grant Thornton LLP is the Council’s external auditor and has undertaken the audit of the Council’s Statement of Accounts for 2015/16.  The Audit Committee is asked to consider the issues that have arisen during the audit and approve the final Statement of Accounts presented as a separate document to the report.  Amendments made to the draft version of the Statement of Accounts since 6 June 2016 are highlighted throughout the final document.

The Audit Committee is asked to consider and approve the 2015/16 Statement of Accounts.

Officer Contact: Jonathan Davies on 0161 218 1025 or email jonathan.davies@stockport.gov.uk.

The Borough Treasurer submitted a report (copies of which had been circulated) containing the 2015/16 Statement of Accounts.

The following comments were made/ issues raised:-

·         The Statement of Accounts had been submitted for approval ahead of the statutory deadline and the Borough Treasurer recommended bringing forward the July 2017 Audit Committee meeting to allow for an earlier approval of the accounts. Concerns were raised however that there were often new members of the Committee who required training and preparation for the role.

·         There was a capital outturn of £122m in 2015/16 which was the largest capital program the Council had ever delivered, and it was expected to be exceeded in the subsequent year following the acquisition of Merseyway.

·         Concerns were raised at the decreased value of the Council’s shareholding in Manchester Airport Group in light of the current expansion of the airport and the increasing number of passengers. It was reported that the nine minority shareholders in Manchester Airport Group relied on professional advice and valuation of the shareholdings and it was believed a degree of caution had been exercised in the valuation;

·         Concerns were raised as to whether the £8.8m of reserves for 2015/16 were necessary. It was reported that the reserves were earmarked for future spending commitments and in recognition of future risk.

·         The Council had sought legal advice from PwC regarding its control over the Special Purpose Vehicle for Stockport Exchange.

·         It was hoped that both Solutions SK and Stockport Homes’ accounts could be consolidated at the same time for the next financial year.

RESOLVED – That the 2015/16 Statement of Accounts be approved.