Agenda and minutes

To approve as a correct record and sign the Minutes of the meeting held on 12 June 2013.

The Minutes (copies of which had been circulated) of the meeting held on 12 June 2013 were approved as a correct record and signed by the Chair.

No declarations of interest were made.

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 Director for Corporate and Support Services.

The report has been prepared by the Corporate Governance Group in line with guidance issued by the Chartered Institute of Public Finance and Accountancy (CIPFA) Finance Advisory Network.

The Audit Committee is requested to note the report.

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

A representative of the Corporate Director for Corporate and Support Services submitted a report (copies of which had been circulated) setting out the Council’s Annual Governance Statement for 2012/13.

RESOLVED – That the Annual Governance Statement 2012/13 be approved and the Leader of the Council and the Chief Executive be recommended to sign-off the document.

To consider a report of the External Auditors.

Officer Contact: Andrew North on Tel: 07880 456207 or email: andrew.d.north@uk.gt.com

Mick Waite (Grant Thornton) submitted a report (copies of which had been circulated) detailing the findings of the 2012/13 audit including key messages arising from the audit of financial statements and work undertaken to assess the Council’s arrangements to secure value of money from the use of its resources.

Mr Waite stated that the Auditors had no hesitation in offering an unqualified opinion on both the financial statements and on value for money. Furthermore, he commended the Council for the quality of its accounts and documentation and expressed his thanks to officers at the Council for their co-operation in the audit process.

The following comments were made/ issues raised:-

·         The Council had demonstrated good and robust medium term financial planning both at a corporate level and within its services.

·         Given the future challenges facing the public sector, and councils in particular, there would be an increasing need to integrate services with other public sector partners. This message was being given to all partners in Stockport wherever possible.

RESOLVED – That the report be noted and the Corporate Director for Corporate and Support Services and those involved in the preparation of the Council’s financial and audit documentation be thanked for their hard work.

To consider a report of the External Auditors.

Andrew North (Grant Thornton) submitted a report (copies of which had been circulated) detailing the findings of an audit of the Council’s arrangements for securing financial resilience that looked at key indicators of financial performance; the Council’s approach to strategic financial planning; its approach to financial governance and to financial control. The Council had been given an overall Green rating, indicating that its arrangements met or exceeded adequate standards.

There was a discussion on the level of school balances. It was stated that while the level of unspent Dedicated Schools Grant funding was amongst the highest in the Council’s neighbourhood benchmark group, levels were falling and the Council was satisfied that these levels reflected prudent financial planning by schools that were saving for specific projects. It was also stated that the Schools Forum was about to embark on a consultation on future school financing arrangements.

The Corporate Director for Corporate and Support Services paid tribute to the work of the officers which was reflected in the Review result. He also expressed his thanks to Grant Thornton for their work as part of the Review.

RESOLVED – That the report be noted.

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

The report sets out the 2012/13 Statement of Accounts.

The Audit Committee is requested to approve the 2012/2013 Statement of Accounts.

Officer Contact: Steve Houston on Tel 474 4000 or email: steve.houston@stockport.gov.uk

The Corporate Director for Corporate and Support Services submitted a report (copies of which had been circulated) providing the Audit Committee with an opportunity to comment on and approve the 2012/13 Statement of Accounts. An amended version of the Accounts that incorporated minor amendments and subsequent changes that had arisen as part of the external audit was circulated.

The following comments were made/ issues raised:-

·         The benefits of borrowing over investing, given the difference in interest rates.

·         CIPFA were currently consulting on the Statement of Accounts format and the views of non-professionals were being sought.

RESOLVED – (1) That the 2012/13 Statement of Accounts be approved.

(2) That the Corporate Director for Corporate and Support Services be requested to circulate to members details of the CIPFA Consultation on the annual accounts process, including details of the Council’s draft response.

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

The report sets out the progress made by internal audit against the approved 2013/14 internal audit plan. The report sets out the current work underway and the outcomes of audit reviews completed in the period.

The Audit Committee is requested to note the report.

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

A representative of the Corporate Director for Corporate and Support Services submitted a report (copies of which had been circulated) outlining progress made in the second quarter of 2013/14 against the internal audit plan.

The following comments were made/ issues raised:-

·         Risks associated with the financial stability and viability of providers of residential placements and the range of measures advised by Audit to ensure a full risk assessment of each company had taken place.

·         Changes to methodology when undertaking internal audits in order to maximise the use of available resources and improve outcomes from the audit.

RESOLVED – That the report be noted.

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

In line with the new Public Sector Internal Audit Standard 2060 – Reporting to Senior Management and the Board – it is expected that the Internal Audit and Risk Manager reports periodically on internal audit’s performance relative to the approved Internal Audit Plan. The Performance Dashboard will help further to achieve this requirement by providing members with more detailed, meaningful and relevant management information.

The Audit Committee is requested to note the report.

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

A representative of the Corporate Director for Corporate and Support Services submitted a report (copies of which had been circulated) inviting the Committee to consider a proposal to introduce a ‘performance dashboard ’that would assist the Committee in monitoring the delivery of the Internal Audit Plan in the future.

RESOLVED – That the new Internal Audit Performance Dashboard be approved for use for future quarterly performance monitoring reports.

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

In line with the new Public Sector Internal Audit Standard 2060 – Reporting to Senior Management and the Board – it is expected that the Internal Audit and Risk Manager reports periodically on internal audit’s performance relative to the approved Internal Audit Plan. The revised Performance Indicators will help further to achieve this requirement by providing members with more detailed, meaningful and relevant management information.

The Audit Committee is requested to note the report.

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

A representative of the Corporate Director for Corporate and Support Services submitted a report (copies of which had been circulated) inviting the Committee to consider proposals to revise the suite of Internal Audit Performance Indicators to ensure more outcome focussed indicators and improved accountability for performance.

RESOLVED – That the updated Internal Audit Performance Indicators detailed in the report be approved.

To consider a report of the External Auditors.

Officer Contact: Andrew North on Tel: 07880 456207 or email: andrew.d.north@uk.gt.com

Andrew North (Grant Thornton) submitted a report (copies of which had been circulated) updating the Committee on progress with the delivery of Grant Thornton’s responsibilities as External Auditor, including a summary of emerging national issues and developments of relevance to the Council.

It was reported that Karen Claber, part of the audit team from Grant Thornton would shortly be leaving to take up a new post. The Committee thanked Karen for her support and wished her well for the future.

RESOLVED – (1) That the report be noted.

(2) That Committee’s thanks be recorded for all those staff at Stockport Council involved in the preparations of the Accounts and audit activity, and to those at Grant Thornton for their support in the past year.

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

Cipfa guidance on the effectiveness of Audit Committees states that the terms of reference of the committee should be reviewed on an annual basis, and updated where necessary.

The Audit Committee is requested to consider the terms of reference and determine if they need to be updated.

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

A representative of the Corporate Director for Corporate and Support Services submitted a report (copies of which had been circulated) proposing amendments to the Committee’s Terms of Reference in line with changes to the internal audit, risk management and governance processes of the Council.

RESOLVED – That the Council Meeting be recommended to approve the revised Terms of Reference for the Audit Committee as part of the annual review of the Constitution.