Agenda and minutes

To approve as a correct record and sign the Minutes of the meeting held on 21 September 2022.

The Minutes (copies of which had been circulated) of the meeting held on 21 September 2022 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.

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 Star Director, Star Procurement

The report provides Members with an update on the latest position at Star Procurement.

The Committee is asked to comment on and note the report.

Officer contact: Lorraine Cox Telephone: 07817 882169

The Star Director, Star Procurement submitted a report (copies of which had been circulated which provided Members with an update on the latest position at Star Procurement.

The following comments were made/issues raised:

·         Members requested clarification relating to in year efficiencies and how this was measured.

·         In response to a Member question, Audit Committee was advised that more work needed to be done in terms of collaboration and economies of scale.

·         Members queried how STAR procurement was liaising with energy providers and were advised that there was lots of joint work taking place in this area across the Councils.

·         In response to a Member question relating to contracts, the Committee was advised that drawing up of contracts was a long and difficult process.  It was hoped that this would be more flexible and fluid next year.

·         A short discussion took place regarding social value and the work that was being done on the living wage agenda.

RESOLVED – That the report be noted.

To consider a report of the Deputy Chief Executive (and Section 151 Officer)

The report details write offs of low-level amounts of debt relating to the Revenues and Benefits Service for the period 1 April 2021 to 31 March 2022.

Audit Committee is asked to note and comment on the report.

Officer contact Nick Long Tel: 07800 618046 or email nick.long@stockport.gov.uk

The Deputy Chief Executive (and Section 151 Officer) submitted a report (copies of which had been circulated) which detailed write offs of low-level amounts of debt relating to the Revenues and Benefits Service for the period 1 April 2021 to 31 March 2022.

The following comments were made/issues raised:

·         Members asked whether debt write off was likely to increase in the coming years particularly in view of the cost-of-living crisis.  If so, has this been factored in.  In response the Committee were advised that debt write off was always dealt with on a case-by-case basis and in light of the circumstances of the particular account holder.  Managers spot check accounts to ensure appropriate decisions are being made.

RESOLVED (i) That the report be noted.

(ii) The Committee agreed that as there was clearly a valiant effort to recover these monies and that the figures were remaining static, there was no longer any need to bring this report to the Committee unless there was any significant change.

To consider a report of the Deputy Chief Executive (and Section 151 Officer).

The report provides an update on the audit of the 2021/2022 Statement of Accounts.

Audit Committee is requested to note the report.

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

The Deputy Chief Executive (and Section 151 Officer) submitted a report (copies of which had been circulated) which provided an update on the audit of the 2021/2022 Statement of Accounts.

The following comments were made/issues raised:

·         Members noted the delays relating to the 2021/22 Audit reports dues to outstanding items that needed to be resolved before the Statement of Accounts could be approved and expressed concerns that the same problems could occur next year.  In response, the Committee was advised was that it was hoped that the infrastructure issue would be resolved but that it could not be guaranteed.

·         A short discussion took place in relation to the Greater Manchester Pension Fund.

RESOLVED – That the report be noted.

To consider a report of the Deputy Chief Executive (and Section 151 Officer).

The report provides an update on the council’s required self-assessment of its position in respect of the Financial Management Code issued by the Chartered Institute of Public Finance and Accountancy (CIPFA).  The report provides an assessment of the financial arrangements currently in place to support compliance with the Code and identify areas for ongoing development.

Audit Committee is requested to note the report.

Officer contact: Jonathan Davies Tel: 0161 218 1025 or Email: jonathan.davies@stockport.gov.uk

The Deputy Chief Executive (and Section 151 Officer) submitted a report (copies of which had been circulated) which provided an update on the council’s required self-assessment of its position in respect of the Financial Management Code issued by the Chartered Institute of Public Finance and Accountancy (CIPFA).  The report provides an assessment of the financial arrangements currently in place to support compliance with the Code and identify areas for ongoing development.

The following comments were made/issues raised:

·         In response to a Member question, the Committee was advised that it was not entirely clear how often the code would be updated as it was CIPFA’s code, but it was likely to be driven by events.

RESOLVED – That the report be noted.

To consider a Report of the Deputy Chief Executive (and Section 151 Officer)

The report sets out the progress made by internal audit against the  Risk Based Internal Audit Plan originally approved by the Audit Committee in March 2022.  

Audit Committee is requested to note the contents of the progress report.  

Officer Contact John Pearsall Tel: 0161 474 4033 or Email: john.pearsall@stockport.gov.uk

The Deputy Chief Executive (and Section 151 Officer) submitted a report (copies of which had been circulated) which set out the progress made by internal audit against the Risk Based Internal Audit Plan originally approved by the Audit Committee in March 2022.

The following comments were made/issues raised:

·    Members expressed some concerns regarding staffing levels within the Audit Team and were advised that the team was now fully staffed.  However, there were broader issues in relation to the workforce more generally.  A number of initiatives were being looked at including recruitment via the apprenticeship scheme.

·    Staff continued to work flexibly and in a hybrid of office and home working.

·    In response to a Member question, the Committee was advised that an internal audit service was provided to Totally Local Company but this had not yet been agreed due to a number of changes taking place within the company.

·    A short discussion took place in relation to the fraud and irregularities panel and the whistleblowing policy and panel.

·    The Committee was advised that a lot of work had been done to ensure that this Council was compliant in relation to data breaches.

RESOLVED – That the report be noted.

To consider a Report of the Deputy Chief Executive (and Section 151 Officer)

The report provides details of the recent consultation by the Ministry of Housing, Communities and Local Government on the following proposals as part of the government’s response to the Redmond Review:

·         A new system leader for the local audit framework.

·         Proposals to strengthen audit committee arrangements within councils.

·         Measures to address ongoing capacity issues on the pipeline of local auditors.

·         Action to further consider local audit functions for smaller bodies.

Audit Committee is requested to approve the appointment of an independent member to the Committee (prior to approval by Full Council).

Officer contact John Pearsall on telephone number 0161 474 4033 or email john.pearsall@stockport.gov.uk

The Deputy Chief Executive (and Section 151 Officer) submitted a report (copies of which had been circulated) which provided details of the recent consultation by the Ministry of Housing, Communities and Local Government on the following proposals as part of the government’s response to the Redmond Review:

·         A new system leader for the local audit framework.

·         Proposals to strengthen audit committee arrangements within councils.

·         Measures to address ongoing capacity issues on the pipeline of local auditors.

·         Action to further consider local audit functions for smaller bodies.

The following comments were made/issues raised:

·         Members queried how the independent person would be supported in the role?  In addition, were there likely to be sufficient candidates wanting to take on the role?  In response, the Committee was advised that the key was to show the transparency and independence of that member of the Committee and the eligibility criteria was designed to reflect this.

RESOLVED – (i) That the report be noted.

·         (ii) That the appointment of an independent member to the Audit Committee (prior to approval by Full Council) be approved.

To consider a Report of the Deputy Chief Executive (and Section 151 Officer)

The report provides details of the Council’s Annual Governance Action Plan arising from the latest Annual Governance Statement (AGS).

Audit Committee is requested to note the contents of the report.

Officer contact: John Pearsall on telephone number Tel: 0161 474 4033 or Email john.pearsall@stockport.gov.uk

The Deputy Chief Executive (and Section 151 Officer) submitted a report (copies of which had been circulated) which provided details of the Council’s Annual Governance Action Plan arising from the latest Annual Governance Statement (AGS).

The following comments were made/issues raised:

·         Members noted that the report demonstrated that progression had been made on three big governance issues.

RESOLVED – That the report be noted.

To consider a Report of the Deputy Chief Executive (and Section 151 Officer)

The report provides Audit Committee with an Update to the Corporate Risk Register Quarter 2.

Audit Committee is requested to note the contents of the CRR Update report.

Officer contact John Pearsall on telephone number Tel: 0161 474 4033 or email john.pearsall@stockport.gov.uk

The Deputy Chief Executive (and Section 151 Officer) submitted a report (copies of which had been circulated) which provided Audit Committee with an Update to the Corporate Risk Register Quarter 2.

The following comments were made/issues raised:

·         A short discussion took place relating to potential risks from pay reviews and potential industrial action.

RESOLVED – That the report be noted.

To consider a report of the external auditors, Mazars.

The Progress Report provides an update on the work that Mazars have undertaken as the auditor for Stockport Metropolitan Borough Council.

Audit Committee is requested to note the report.

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

The external auditors, Mazars submitted a report (copies of which had been circulated) which provided an update on the work that Mazars have undertaken as the auditor for Stockport Metropolitan Borough Council.

RESOLVED – That the report be noted.

To consider a Report of the Deputy Chief Executive (and Section 151 Officer)

The report provides details of the proposed PSAA Appointment of an External

Auditor for 2023.

Audit Committee is recommended to:

·                Approve the appointment of Mazars as the Council’s External Auditor to commence on 1 April 2023 (subject to Full Council approval); and

·                Support the approval of the appointment by the Full Council meeting in January 2023.

Officer contact: John Pearsall on telephone number 0161 474 4033 or alternatively email john.pearsall@stockport.gov.uk

The Deputy Chief Executive (and Section 151 Officer) submitted a report (copies of which had been circulated) which provided details of the proposed PSAA Appointment of an External Auditor for 2023.

The following comments were made/issues raised:

·         Members asked about fees and how Mazars compared to other Auditors.  In response, the Committee was advised that this had been looked into and that the fees fairly reflected the service that was received.

RESOLVED (i) That the report be noted

(ii) that the appointment of Mazars as the Council’s External Auditor

to commence on 1 April 2023 (subject to Full Council approval)

(iii) that the approval of the appointment by Full Council meeting in

January 2023 be supported.