Issue - meetings

To consider a report of the Borough Treasurer.

The report outlines the options for appointing an external auditor for the audit year 2018/19.

The Audit Committee is asked to consider the proposal for the establishment of a local joint procurement arrangement with GMCA and other neighbouring authorities for the provision of external audit services from 2017/18 and;

Delegate to the Chair of the Audit Committee, under advice from the Borough Treasurer, to agree the final recommendation to be made to Full Council before March 2017.

Officer Contact: John Pearsall on Tel: 0161 474 4033 or email: john.pearsall@stockport.gov.uk.

A representative of the Borough Treasurer submitted a report (copies of which had been circulated) outlining the options for appointing an external auditor for the audit year 2018/19.

Councillors discussed the options set out in the report, and the following comments were made/ issues raised:-

·         Concerns were raised regarding the potential for a lack of accountability with a sector led body.

·         Guidance was clear that external auditors could not be employed by a local authority in which an employee of theirs was a serving councillor.

·         A sector led body appointed multiple companies who would be allocated to each region so that in the event of a councillor becoming employed by the current external auditor, a different company could then be employed.

·         It was acknowledged that the likelihood of a serving councillor being employed by the appointed external auditor was low; but that the impact if it were to occur under a non-sector led body appointment was significant.

·         The Public Sector Audit Appointments Limited (PSAAL) offered economies of scale in terms of procurements of auditors and was a better deal than going to the market alone, as it was likely that the pool of interested auditors would be small.

·         There was a need to set out Stockport Council’s requirements to the PSAAL and ask what opportunities would be provided to the people of Stockport should they be appointed.

RESOLVED – (1) That the decision to agree the final recommendation to be made to the Council Meeting before March 2017 be delegated to the Chair of the Audit Committee, under advice from the Borough Treasurer.

(2) That the Borough Treasurer be requested to provide further assurance to the Council Meeting on the appointment of a sector-led body prior to the decision being made.