Agenda and minutes

To approve as a correct record and sign the Minutes of the meeting held on 25 September 2012.

The minutes (copies of which had been circulated) of the meeting held on 11 December 2012 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.

The following interests were declared:-

Personal Interests

Members of the public are invited to put questions to the Chair of the Area Committee on any matters within the powers and duties of the Area 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 the meeting and at local libraries and information centres.  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 details the progress against each of the items identified as significant governance issues in the 2011/2012 Annual Governance Statement.

The Audit Committee are recommended to not the report.

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

A report of the Corporate Governance Group was submitted (copies of which had been circulated) detailing progress against each of the items identified as Significant Governance issues in the 2011/12 Annual Governance Statement. This would be the final update prior to the preparation of the 2012/2013 Statement. The Chief Internal Auditor confirmed that all items on the current statement would be considered when preparing the Annual Governance Statement for 2012/2013.

The following comments were made/issues raised:-

·         In respect to Information Governance – criteria was now being developed to risk assess data breaches in terms of their severity in line with guidance from the Information Commissioner’s Office.

·         An internal audit review was due to commence with the objective of providing assurance that risks were being properly identified and assessed within savings proposals.

·         The Stockport Partnership Board had agreed to the creation of a Business Management Group (SMBG) comprising of the Chief Officers of key partner agencies. The SMBG were developing a local implementation plan for public sector reform which would clarify programme governance.

·         A review was currently being undertaken of the overall governance arrangements for wholly owned companies. Councillors suggested that it would be helpful to list those bodies in the report as well as identifying how the Council was represented on their boards.

RESOLVED – That the report be noted.

The report sets out the proposed arrangements for completion of the Annual Governance Statement for 2012/2013.

The Audit Committee are recommended to approve the process for completion of the statement.

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

A representative of the Corporate Director, Corporate and Support Services submitted a report (copies of which had been circulated) setting out proposed management arrangements for completion of the Annual Governance Statement for 2012/2013. It was the intention that the statement would be submitted to the Audit Committee in June 2013 for approval prior to consideration by the Leader of the Council and the Chief Executive. The Annual Governance Statement is prepared by the Corporate Governance Group and is signed of by the Leader and the Chief Executive.

RESOLVED – That the report be noted.

The report sets out the progress made against the approved 2012/2013 internal audit plan.

The Audit Committee is requested to note the report.

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

A representative of the Corporate Director, Corporate and Support Services submitted a report (copies of which had been circulated) setting out the progress made by internal audit against the approved 2012/2013 internal audit plan. The report included a progress update against agreed performance indicators for the audit service as well as current work underway and the outcomes of any audit reviews concluded.

The following comments were made/ issues raised:-

·         Follow up memos had been issued to clients but follow up work had not yet started due as responses had not yet been received. Consequently, investigation work had been prioritised.

·         Concern was expressed in respect to the review on Cash Collection and Banking particularly that the process for cash collection and banking at establishments were inadequately controlled.

RESOLVED – That the report be noted.

To consider a report of the Chief Internal Auditor.

The report outlines the key elements of the new Public Sector Internal Audit Standards which became mandatory for all internal auditors working in the UK public sector from 1 April 2013.

The Audit Committee is requested to note the report.

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

A representative of the Corporate Director,Corporate and Support Services submitted a report (copies of which had been circulated) outlining the key elements of the new Public Sector Internal Audit Standards which became mandatory for all internal auditors working in the United Kingdom from 1^st April 2013.

RESOLVED – That the report be noted.

To consider a report of the Chief Internal Auditor.

The draft internal audit plan has been prepared in consultation with senior management across the Council and in accordance with the new Public Sector Internal Audit Standards.  The plan includes an assessment of the resources required to deliver an annual internal audit opinion and details the work that will be undertaken to inform the annual opinion.

Attached as an appendix to the audit plan is the Audit Charter.The charter has now been revised to incorporate additional areas required by the new Public Sector Internal Audit Standards.

The Audit Committee is requested to approve the annual internal audit plan and audit charter for 2013/2014.

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

A representative of the Corporate Director, Corporate and Support Services submitted a report (copies of which had been circulated) providing an assessment of the resources required to deliver an annual audit option and detailing the work that would be undertaken to produce an annual opinion. The report also included the Audit Charter which had been revised to incorporate additional areas required by the new Public Sector Internal Audit Standards.

RESOLVED – That the Annual Internal Audit Plan and the Audit Charter for 2013/2014 be approved.

To consider a report of the Chief Internal Auditor.

The draft internal audit report template is attached for information and approval. 

The Audit Committee is requested to approve the template.

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

A representative of the Corporate Director, Corporate and Support Services submitted a report (copies of which had been circulated) requesting the Committee to consider a new internal audit report template which had been revised to focus on the level of assurance that could be given for the area under review and for reporting he outcomes and recommendations in a more concise manner.

RESOLVED – That the new internal audit reporting template be approved and used for all work from the 2013/2014 audit plan.

To consider a report of the external auditor.

Representatives of Grant Thornton UK LLP submitted a report (copies of which had been circulated) providing the Committee with a report on progress on delivering on their responsibilities as the Council’s external auditors. The report provided a summary of emerging national issues and a commentary in respect to emerging issues which the Committee may wish to consider.

RESOLVED – That the report be noted.