Agenda and minutes

To approve as a correct record and sign the Minutes of the meeting held on 28 November 2019.

The Minutes (copies of which had been circulated) of the meeting held on 28 November 2018 were approved as a correct record and signed by the Chair.

Councillors and officers were invited to declare any interests they had in any of the items on the agenda for the meeting.

No declarations of interest were made.

No urgent decisions were reported.

Members of the public are invited to put questions to the Chair 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 meetingon the card provided.  These are available at the meeting. You can also submit via the Council’s website at www.stockport.gov.uk/publicquestions).

Members of the public were invited to put questions to the Chair on any matters within the powers and duties of the Area Committee, subject to the exclusions set out in the Code of Practice.

No public questions were submitted.

To consider a report of the Borough Treasurer.

The report provides Members with details of the proposed accounting policies to be adopted in the preparation of the Council’s 2018/19 Statement of Accounts.

Members are requested to approve the Council’s proposed Accounting policies to be adopted in preparation of the Council’s 2018/19 Annual Statement of Accounts.

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

The Borough Treasurer submitted a report (copies of which had been circulated) providing the Committee with details of the proposed account policies to be adopted in the preparation of the Council’s 2018/2019 Statement of Accounts.

The following comments were made/issues raised:-

Councillors noted that two new Accounting Policies were applicable for the financial year 2018/19, IFRS 9 Financial Instruments and IFRS 15 Revenue from Contracts with Service Recipient and that these would be applied retrospectively, however, there would be no restatement of prior year information. Consequently any changes and adjustments would be applied from 1 April 2018.

Councillors also welcomed the fact that presentational changes and minor updates/clarifications had been made to the other Accounting Polices to improve the readers understanding of the Council’s Statement of Accounts.

RESOLVED – That the report be noted and the proposed Accounting Policies be adopted when preparing the Council’s 2018/2019 Annual Statement of Accounts.

To consider a report of the Borough Treasurer.

The report sets out the progress made by internal audit against the approved 2018/19 internal audit plan for the period 1^st November 2018 to 31^st January 2019.   

The report informs Members of the resources utilised by Internal Audit during the period, the activities undertaken in the reporting period, and the status of work currently being undertaken. 

The report also outlines the following:

·         Summary Dashboard 1 shows the status of all audit work, the dates of the draft and final reports, the level of assurance and the time period that the work was completed. (Appendix 3). 

·         Summary Dashboard 2 gives an overview of the status of all audit recommendations by audit review and recommendation grading.   

(Appendix 4).   

·         Summary Dashboard 3 shows the same data as dashboard 2 but specifically for school audits.  (Appendix 5).    

The Committee is requested to note the internal audit progress report.

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

1.1 approv

The Borough Treasurer submitted a report (copies of which had been circulated) setting out progress made by internal audit against the approved 2018/19 internal audit plan for the period 1 November 2018 to 31 January 2019.

The following comments were made/issues raised:-

·         Councillors welcomed the work being undertaken in respect to partnership working and asked how far recommendations detailed in the report had been implemented.

·         The work undertaken in respect to countering fraud was welcomed and the Committee noted the ongoing investigations.

·         Concerns were expressed in respect to the fact that the Clinical Commissioning Group had changed its approach and consequently the Council was now focused on joint commissioning of the current pooled budget only, for the next 12 months.

RESOLVED – That the report be noted.

To consider a report of the Borough Treasurer.

The report provides Members with details of the annual risk-based internal audit plan which takes into account the requirement to produce an annual internal audit opinion.

The Committee is requested to approve the annual internal audit plan and audit charter for 2019/20.

Officer contact: John Pearsall on 474 4033 or Email: john.pearsall@stockport.gov.uk

The Borough Treasurer submitted a report (copies of which had been circulated) providing the Committee with details of the annual risk based internal audit plan which takes into account the requirement to produce an annual internal audit opinion.

The Chair thanked officers for the comprehensiveness of the report.

RESOLVED – That the Annual Internal Audit Plan and Audit Charter for 2019/2020 be approved.

To consider a report of the Borough Treasurer.

The report outlines the key governance issues currently facing the Council along with agreed controls put in place to manage the issue.

The Committee is requested to note and comment on the Annual Governance Statement Action Plan.

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

The Borough Treasurer submitted a report (copies of which had been circulated) outlining the key governance issues currently facing the Council along with the agreed controls put in place to manage the issue.

RESOLVED – That the report be noted.

To consider a report of the Borough Treasurer.

The report provides Members with details of the proposed arrangements for the completion of the Annual Governance Statement for 2018/19.  The final Annual Governance Statement will be presented at the next meeting of the Audit Committee.

The Committee is requested to approve the process for completion of the Statement.

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

The Borough Treasurer submitted a report (copies of which had been circulated) providing the Committee with details of the proposed arrangements for the completion of the Annual Governance Statement 2018/2019.

RESOLVED – That the report be noted and the Annual Governance Statement 2018/2019 be submitted to the next meeting of the Committee for consideration.

To consider a report of the Borough Treasurer.

The report sets out the quality assurance arrangements in place for the internal audit for 2019/20 along with the self-assessment results of the QAIP for 2018/19 and the proposed basis that will be used for the external assessment of the Council’s internal audit function.

The Committee is asked to note the QAIP and the results of the self-assessment.

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

The Borough Treasurer submitted a report (copies of which had been circulated) setting out the quality assurance arrangements in place for the internal audit 2019/2020 along with the self-assessment results of the QAIP for 2018/2019 and the proposed basis that will be used for the external assessment of the Council’s internal audit function.

RESOLVED – That the report be noted.

To consider a report of the Borough Treasurer.

There have been no significant changes to the Corporate Risk Register since the update in November 2018.  The report outlines, where relevant, emerging risks and opportunities for ongoing changes in Children’s and Adults services.

The Committee is requested to comment on the current corporate risks identified in the register.

Officer contact: John Pearsall on 474 4033 or Email:john.pearsall@stockport.gov.uk

The Borough Treasurer submitted a report (copies of which had been circulated) highlighting that there had been no significant changes to the Corporate Risk Register since the last update in November 2018. The report also outlined emerging risks and opportunities for ongoing changes in Children’s and Adults services.

RESOLVED – That the report be noted.

To consider a report of the Borough Treasurer.

The purpose of the report is to outline the rationale and reasoning behind not currently having an independent member on the Council’s Audit Committee.

The Committee are requested to:

(i)            Note the contents of the report

(ii)          The Chair of the Committee to review the issue of an independent member as part of his/her annual review and report on the effectiveness of the Audit Committee.

Officer contact: John Pearsall on 474 4033 or Email: john.pearsall@stockport.gov.uk

The Borough Treasurer submitted a report (copies of which had been circulated) outlining the rationale and reasoning for currently not appointing an independent member to the Council’s Audit Committee.

RESOLVED – That the report be noted and the Chair be requested to give this issue further consideration as part of his annual report on the effectiveness of the Audit Committee.

To consider a report of the Borough Treasurer.

The report updates Members of the Committee on the recent guidance document produced by the National Audit Office on Local Authority Governance.

The Committee is requested to note the contents on the NAO report.

Officer contact: John Pearsall on 474 4033 or Email: john.pearsall@stockport.gov.uk

The Borough Treasurer submitted a report (copies of which had been circulated) providing an update on the recent guidance document produced by the National Audit Office on Local Authority governance.

RESOLVED- That the report be noted.

To consider a letter from Grant Thornton.

The letter is a certification of work for the Council by Grant Thornton in respect of the Housing Benefit subsidy claim for the year 2017/18.

The Committee is requested to note the letter.

Officer contact: John Pearsall on 474 4033 or email: John.pearsall@stockport.gov.uk

The External Auditor submitted a report (copies of which had been circulated) providing for comment the certification of work letter for the Council by Grant Thornton in respect to the Housing Benefit subsidiary claim for the year 2017/2018.

RESOLVED – That the report be noted.

To consider a report from the external auditor, Mazars.

The report provides a summary of the audit approach, highlights significant audit risks and areas of key judgements and also provides details of the audit team.

The Committee is asked to note the report.

Officer contact: John Pearsall on 474 4033 or Email: john.pearsall@stockport.gov.uk

The External Auditor submitted a report (copies of which had been circulated) providing a summary of the approach, highlighting significant audit risks and areas of key judgements and providing details of the audit team.

On behalf of the Committee the Chair thanked officers for their work and welcomed the detail contained within the report.

RESOLVED – That the report be noted.

To consider a report of the external auditors, Mazars.

The report provides the Committee with an update on progress in delivering Mazars responsibilities as the external auditors.

The Committee is asked to note the report.

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

The External Auditors submitted a report (copies of which had been circulated) providing the Committee with an update on progress in delivering Mazars responsibilities as the external auditors.

RESOLVED – That the report be noted.