Agenda and minutes

To approve as a correct record and sign the Minutes of the meeting held on 12 August 2020.  

The Minutes (copies of which had been circulated) of the meeting held on 12 August 2020 were approved as a correct record and signed by the Chair, subject to the addition in the pre-amble to Minute 13 on the ‘Mazars Progress Report’ of the following:-

‘A representative of the external auditors, Mazars, drew the attention of the Committee to the fact that from a professional standards perspective Mazars confirmed their decision to terminate the contract referred to at the meeting due to a threat to independence. Members were comfortable that the reasons and actions taken were proportionate given the risks involved’.

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

The following interests were declared:-

Personal Interests

Personal and Prejudicial Interest

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).

No public questions were submitted.

To consider a report of the Corporate Governance Group.

The report provides Members with the final version of the Council’s Annual Statement (AGS) for 2019/20.

Audit Committee is requested to note the report and to approve the Annual Governance Statement prior to signing by the Leader of the Council and the Chief Executive.

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

A representative of the Corporate Director, Corporate and Support Services submitted a report of the Corporate Governance Group (copies of which had been circulated) providing Members with the final version of the Council’s Annual Governance Statement for 2019/20.

RESOLVED – That the Annual Governance Statement be approved prior to its signing by the Leader of the Council and the Chief Executive.

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

The report provides Members with details of the Council’s response to queries raised by the external auditors, Mazars, as part of the Audit Risk Assessment.

Audit Committee is requested to note the report.

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

A representative of the Corporate Director, Corporate and Support Services submitted a report (copies of which had been circulated) providing Members with details of the Council’s response to queries raised by the external auditors, Mazars, as part of the Audit Risk Assessment.

The Corporate Director, Corporate Services gave an assurance to the Committee that there had been no relaxation of the Contract Procedure Rules in order to respond to urgent issues during the Covid-19 pandemic and that the usual due diligence in the award of contracts had been followed.

RESOLVED – That the Council’s response be noted.

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

The report provides Members with the detail of the Annual Accounts 2019/20

Audit Committee is requested to:

(i)            Note and comment upon the Annual Accounts 2019/20

Officer contact: Michael Cullen on 474 4631 or email: michael.cullen@stockport.gov.uk

The Corporate Director, Corporate and Support Services submitted a report (copies of which had been circulated) providing Members with the details of the Annual Accounts for 2019/20.

Members asked a number of questions with regard to:-

·         Whether there were any material differences to the short term debtors

·         Whether there were any particular issues arising in the near future with regard to school expenditure and reserves.

·         Where the contingency funds for Stockport Together and Brexit were set out in the Annual Accounts.

·         What the Council was doing to ensure that it got value for money from the Greater Manchester 100% Business Rates Retention Pilot.

·         The car park project at Manchester Airport.

RESOLVED – That the Annual Accounts for 2019/20 be noted.

To consider a report of the external auditors, Mazars.

The report provides Members with a summary of Mazars’ audit conclusions.

The Committee is asked to note the report.

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

A representative of the external auditors, Mazars, submitted a report (copies of which had been circulated) providing the Committee with a summary of their audit conclusions. The external auditors hoped to be in a position to sign off the accounts prior to the next scheduled meeting of the Committee on 12 October 2020.

Members of the Committee asked a number of questions relating to the external auditors’ views on value for money and the liabilities of the Group Accounts.

RESOLVED – That the report be noted.

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

The report provides Members with details of the issues that have arisen during the audit..

Audit Committee is requested to:

(i)            Note the Council’s 2019/20 Statement of Accounts.

(ii)          Note the Management Letter of Representation and,

(iii)         In the event of no material changes as a result of the outstanding audit work, delegate the approval of the 2019/20 Statement of Accounts to the Corporate Director, Corporate and Support Services in consultation with the Chair of the Audit Committee on receipt of advice from the External Auditor.

Officer contact: Michael Cullen on 474 4631 or email: michael.cullen@stockport.gov.uk

The Corporate Director, Corporate and Support Services submitted a report (copies of which had been circulated) providing Members with details of the issues that had arisen during the audit.

RESOLVED – (1) That the Council’s 2019/20 Statement of Accounts be noted.

(2) That the Management Letter of Representation be noted.

(3) That, in the event of no material changes as a result of the outstanding audit work, approval of the 2019/20 Statement of Accounts be delegated to the Corporate Director, Corporate and Support Services, in consultation with the Chair of the Audit Committee, on receipt of advice from the External Auditor.

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

It is a requirement of the Public Sector Internal Audit Standards (PSIAS) that the Head of Internal Audit, Risk and Insurance prepares an annual report containing an overall opinion on the Council’s control framework.  The report contains this statement and details the audit work undertaken in the year from which the overall opinion has been drawn.

Audit Committee is requested to note the report.

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

A representative of the Corporate Director, Corporate and Support Services submitted a report (copies of which had been circulated) setting out an annual report of the Head of Internal Audit, Risk and Insurance which was a requirement of the Public Sector Internal Audit Standards. The annual report contained an overall opinion on the Council’s control framework and detailed the audit work undertaken in the year from which the overall opinion had been drawn.

RESOLVED – That the report be noted.

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

The report advises Members of the work carried out during the past year to minimise the risk of fraud, bribery and corruption occurring in Stockport Council.

Audit Committee is requested to note the report.

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

A representative of the Corporate Director, Corporate and Support Services submitted a report (copies of which had been circulated) advising Members of the work carried out during the past year to minimise the risk of fraud, bribery and corruption occurring at the Council.

The following comments were made/issues raised:-

·         Specialist Officers from Salford City Council had been commissioned to undertake two audits in the area of in internet banking and payments by direct debit as cyber security was a major issue for the Council.

·         Support was given to the principle of ‘buying in’ specialist assistance when required.

RESOLVED – That the report be noted.