Agenda and minutes

To approve as a correct record and sign the Minutes of the meeting held on 18 December 2013.

The Minutes (copies of which had been circulated) of the meeting held on 18 December 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 External Auditor.

The Audit Committee are requested to consider and comment on the report.

Officer Contact: Mick Waite on Tel: 0161 234 6347 or email: mick.j.waite@uk.gt.com

Mick Waite,External Auditor (Grant Thornton) submitted a report (copies of which had been circulated) detailing how the external auditors were delivering on their responsibilities and summarising emerging national issues and developments which impact on the Council.

The following comments were made/issues raised:-

·         How the Council was responding to the implementation of the Better Care Fund, a transformation in integrated health and social care through local single pooled budget arrangements which were formally underpinned by section 75 of the NHS Act 2006.

·         Two reports had recently been issued which all Councillors were encouraged to inspect i) 2016 tipping point? Challenging the current and ii) Alternative delivery models in local government.

·         The unprecedented financial challenges facing local authorities meant that they had no option but to take increased risks and work innovatively to continue to deliver services within the budget.

·         Local Authorities would continue to face tough decisions about (i) which services they wish to continue to deliver in the future and those which they will no longer be able to afford to continue and (ii) how to invest with much smaller budgets.

·         Concern was expressed that external and outside bodies in Stockport were not sufficiently prepared or developed to step in and provide or prop up services where the Council would inevitably have to take a step back or withdraw service provision.

RESOLVED – That the report be noted.

To consider a report of the External Auditor.

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

Officer Contact: Mick Waite on Tel: 234 6347 or email: mick.j.waite@uk.gt.com

Andrew North, External Auditor (Grant Thornton) submitted a report (copies of which had been circulated) summarising the overall assessment of the Council’s Management arrangements in respect of the claims and certification process and highlighting any matters relating to individual claims.

RESOLVED – That the report be noted.

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

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

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

The Corporate Director for Corporate and Direct Service submitted a report (copies of which had been circulated) setting out progress made in respect to the internal audit plan for the period 1 December 2013 to 28 February 2014.

The following comments were made/issues raised:-

·         Councillors welcomed the information provided in respect to performance indicators notably final reports completed within the budgeted number of days and customer satisfaction.

·         An update was requested for the next meeting in relation to the current audit into the Troubled Families Programme.

·         The future roll out of ‘continuous auditing.’

RESOLVED – That the report be noted.

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

The report sets out summary findings, recommendations and agreed management actions arising from and internal review (undertaken by Tameside) on the pension arrangements at Stockport Council (Greater Manchester Pension Scheme)

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

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

The Corporate Director for Place Management and Regeneration submitted a report (copies of which had been circulated) setting out the summary findings, recommendations and agreed management actions arising from an internal audit review (undertaken by Tameside) on the pension arrangements at Stockport Council (Greater Manchester Pension Scheme)

Councillors discussed the potential for future costs to the Council in relation to a short fall in payments being made to the pension fund.

RESOLVED – That the report be noted.

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

The Public Sector Internal Audit Standards require the Internal Audit & Risk Manager to prepare an annual risk-based internal audit plan which takes into account the requirement to produce an annual internal audit opinion and the report is presented to the Audit Committee for consideration.

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

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

The Corporate Director for Corporate and Support Services submitted a report (copies of which had been circulated) outlining the draft internal audit plan which had been prepared through the development of an Audit Coverage Model that had highlighted those areas of the Council considered highest risk. The Audit Charter 2014/2015 was also attached as an appendix to the report.

The following comments were made/issues raised:-

·         The categorisation of the work the service provides and how that will continue to function in the future.

·         The possibility in the future of an audit in relation to insurance claims made against the Council.

·         The key characteristics of the Internal Audit Plan for 2014/2015 and how it will challenge those areas of the Council which are considered to be a priority at the present time.

·         The Audit Coverage Model will be reviewed on a regular basis to support the future direction of the Audit Plan by identifying high risk areas which require immediate independent assurance.

RESOLVED – That the report be noted and the draft Internal Audit Plan and Audit Charter be approved.

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

The report sets out the proposed arrangements for completion of the Annual Governance Statement for 2013/2014. The statement is prepared by the Corporate Governance Group and is chaired by the Corporate Director.

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

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

The Corporate Director for Corporate and Support Services submitted a report (copies of which had been circulated) setting out proposed arrangements for completion of the Annual Governance Statement for 2013/2014.

RESOLVED – That the report be noted and the process for completion of the Statement be approved.