Agenda and minutes

To approve as a correct record and sign the Minutes of the meeting held on 29 November 2011.

The minutes (copies of which had been circulated) of the meeting held on 29 November 2012 were approved as a correct record and signed by the Chair.

The following interest was declared:-

Personal Interest

To report any urgent action taken under the Constitution since the last meeting of the Committee.

No urgent decisions were reported.

Members of the public are invited to put questions to the Chair of the Committee on any matters within the powers and duties of the Committee, subject to the exclusions set out in the Code of Practice (questions must be submitted prior to the commencement of the meeting on the cards provided. These are available at the meeting and on the Council’s website at www.stockport.gov.uk/democracy )

No public questions were submitted.

To consider a report of the Corporate Director for Corporate and Support Services.

The report outlines the level of evidence Housing and Council Tax Benefit claimants will be required to provide under risk based verification.

The Audit Committee is requested to approve the policy and confirm that the levels of evidence requested for each of the risk categories is appropriate.

Officer Contact: Alison Blount on Tel: 474 5107 or email: alison.blount@stockport.gov.uk

A representative of the Corporate Director for Corporate and Support Services submitted a report (copies of which had been circulated) outlining the level of evidence Housing and Council Tax Benefit claimants would be required to provide under risk based verification. The report requested the Audit Committee to comment on and agree the suggested policy and confirm that the levels of evidence requested for each of the risk categories were appropriate.

The following comments were made/ issues raised:-

·         It was suggested that Internal Audit should keep a close watch on the policy as it was implemented over the course of the next twelve months.

·         Recording and Monitoring relied on ICT but there remained a strong element of judgement by council officers.

·         The approximate amount of officer time spent verifying each claimants documentation.

RESOLVED – (1) That the suggested policy and levels of evidence required for each risk category be endorsed.

(2) That the Corporate Director for Corporate and Support Services be requested to provide an update to the Audit Committee in 12 months’ time on the implementation of and effect of the policy during the course of the next 12 months.

To consider a report of the Corporate Director for Corporate and Support Services.

The report details the progress against each of the significant Governance issues identified in the 2010/2011 Annual Governance Statement.

The Audit Committee is requested to note the progress made against the significant Governance issues.

Officer Contact: Niki Riley on Tel: 474 4033 or email: niki.riley@stockport.gov.uk

A representative of the Corporate Director for Corporate and Support Services submitted a report (copies of which had been circulated) detailing progress made against the agreed Internal Audit Plan 2011/12 and outlining the outcomes of completed audit reviews during that period.

RESOLVED – That the report be noted.

To consider a report of the Chief Internal Auditor.

The report details progress against the agreed Internal Audit Plan 2011/12. The report includes the outcomes of completed audit reviews in the period.

The Audit Committee is asked to note the progress against the 2011/2012 Audit Plan.

Officer Contact: Niki Riley on Tel: 474 4033 or email: niki.riley@stockport.gov.uk

A representative of the Corporate Director for Corporate and Support Services submitted a report (copies of which had been circulated) detailing the progress made against the agreed Internal Audit Plan 2011/2012 and detailing the outcomes of the completed audit reviews during that period.

RESOLVED – That the report be noted.

To consider a report of the Chief Internal Auditor.

The report outlines the proposed Internal Audit work plan for 2012/2013 including the proposed staffing structure required to deliver the plan and the internal Audit Charter.

The Audit Committee is requested to approve the audit plan including the proposed staffing structure and the internal Audit Charter.

Officer Contact: Niki Riley on Tel: 474 4033 or email: niki.riley@stockport.gov.uk

A representative of the Corporate Director for Corporate and Support Services submitted a report (copies of which had been circulated) detailing the proposed internal audit work plan for 2012/2013. The report also incorporated a proposed staffing structure required to deliver the plan and the Internal Audit Charter.

The following comments were made/issues raised:-

·         Pressures on the internal audit service resulting from staffing reductions.

·         The training requirements of Senior Auditors.

·         The inclusion of the Internal Audit Charter was welcomed.

·         There were a number of significant pieces of work for the forthcoming year including the localisation of business rates and introduction of Council Tax rebate, participatory budgeting, payroll and risk based verification of housing benefit claimants.

·         The role of Internal Audit in light the Personalisation agenda and the role of the Council’s Scrutiny Committees.

RESOLVED – That the Internal Audit Plan 2012/2013 and the Internal Audit Charter be approved.

To consider a report of the Corporate Director (Corporate & Support Services)

The report provides the Audit Committee with an update on the 2011/2012 Statement of Account process and highlights some of the significant issues which will feature in this year’s accounts. The report also outlines the preparation, audit and approval process and details proposals to provide a training session on the statement of accounts for Members of the Audit Committee.

The Audit Committee is requested to comment on the format and content of the summary accounts and the summary financial information included at Appendix One and Appendix Two and to note the remainder of the report.

Officer Contact: Christine Buxton on Tel: 474 4124 or email: christine.buxton@stockport.gov.uk

A representative of the Corporate Director for Corporate and Support Services submitted a report (copies of which had been circulated) providing the Committee with an update on the 2011/2012 Statement of Accounts process and highlighting some of the significant issues which would feature in the 2012/2013 accounts. The report also detailed the preparation, audit and approval process and the intention to provide a training session on the Statement of Accounts for Councillors later in the year.

The following comments were made/issues raised:-

·         The proposed training session for September 2012 was welcomed.

·         Councillors suggested that consideration should be given to the way in which the accounts were formatted to make them easier to read and understand.

·         The accounts should contain further detailed information explaining the rational for decisions when one option has been chosen over another.

RESOLVED – That the report including the summary accounts and summary financial information included at Appendix 1 and Appendix 2 of the report be approved.

To consider (i) an update on the future of Local Public Audit and (ii) the CLG consultation questionnaire.

The Audit Committee are requested to consider and comment on the CLG Consultation Questionnaire.

Officer Contact: Niki Riley on Tel: 474 4033 or email: niki.riley@stockport.gov.uk

Andrew North and Tim Watkinson, Audit Commission, submitted a report (copies of which had been circulated) providing the Audit Committee with a progress report in respect to the Audit Commission delivering in their responsibilities as the Council’s external auditors as well as an update in respect to externalisation of the Audit Practice. The report also drew the Committees attention to key emerging issues and developments which may be of interest to Councillors.

The following comments were made/issues raised:-

·         The Government’s response to the consultation on the future of local public audit including the intention to provide a limited set of functions to an Independent Audit Appointment Panel in legislation in respect to advising on auditor appointment, independence, removal and resignation and in relation to public interest reports.

·         Grant Thornton had successfully acquired the contract for the North West and will take on responsibility as the Council’s auditors from 1 September 2012.

·         The requirement for Council’s to publish their remuneration arrangements and to approve larger salary packages in an open session of the full Council – this will be done at the March meeting of Stockport Council.

·         Concern was expressed at the ability to recruit an appropriate calibre of candidate to the Independent Audit Appointment Panels and it was suggested that the Council should consider a joint working arrangement with other local authorities.

Niki Riley, Chief Internal Auditor, Stockport Council drew the Committees attention to a questionnaire from the Department for Communities and Local Government and it was agreed that a response would be sent later in the year.

RESOLVED – (1) That the report be noted.

(2) That the Corporate Director for Corporate and Support Services be requested to circulate a response to Councillors in respect to the Key Considerations identified by the Audit Commission on page 15 of their report.

To consider a report of the Audit Commission.

The Audit Commission is requested to consider and comment on the report.

Officer Contact: Tim Watkinson on Tel: 0844 798 7045 or Andrew North on Tel: 07979208036

Andrew North and Tim Watkinson, Audit Commission, submitted a report (copies of which had been circulated) summarising the outcomes of the Audit Commissions certification work on the 2010/2011 claims and returns.

RESOLVED – That the report be noted.

To consider a report of the Audit Commission.

The Audit Commission is requested to consider and comment on the report.

Officer Contact: Tim Watkinson on Tel: 0844 798 7045 or Andrew North on Tel: 07979208036

Andrew North and Tim Watkinson, Audit Commission, submitted a report (copies of which had been circulated) setting out the work for the 2011/2012 audit.

RESOLVED – That the report be noted.