Agenda and minutes

To approve as a correct record and sign the minutes of the meeting held on 7 March 2012.

The Minutes (copies of which had been circulated)of the meeting held on 7 March 2012 were approved as a correct record and signed by the Chair subject to the following amendment:-

In respect to minutes 6 the deletion of the words “Internal Audit Plan 2011/12 and outlining the outcomes of completed audit reviews during that period” to be replace with “Annual Governance Statement.”

The following interests were declared:-

Personal Interest

Members of the public are invited to put questions to the Chair of the Committee 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 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.

One public question was submitted concerning SK Solutions.

The Chair confirmed that Internal audit undertakes a programme of audit reviews on behalf of Solutions SK which the Company commissions and pays for.  These audit reports are issued to the Directors of the company who have full responsibility for the implementation of the recommendations made within these.  Solutions SK has its own Audit Committee which received those reports and was responsible for monitoring the implementation of the actions.  This was entirely in line with the Companies Act under which the Company was responsible for its own audit reports.

The Council's Audit Committee received a summary of the number of days work that the Council's Internal Audit service delivers to Solutions SK and a quarterly summary of the reviews undertaken for the company to allow the Committee to monitor the resources available and performance of the Council's internal audit service.

The Council's Audit Committee receives a summary of the outcome of any report that is undertaken for the Council which may include the Council's arrangements for monitoring services provided externally, up to the point where the external organisation becomes responsible.

It is this area where the Council’s Audit Committee had an important role in ensuring that the Council has effective governance arrangements in place with regard to its wholly owned companies.

The Chair further clarified that no member of the Audit Committee during 2011/12 received any audit reports relating to Solutions SK.

To consider a report of the Chief Internal Auditor.

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

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

The Chief Internal Auditor submitted a report (copies of which had been circulated) setting out the work carried out by the Internal Audit service during 2011/12 and containing the overall opinion of the Chief Internal Auditor on the effectiveness of the system of internal control at the Council.

The following comments were made/issues raised:-

·         Further clarification was sought in respect to the Council’s efficiency saving projects within the Transformation Programme.

·         Staffing levels and recruitment with the Internal Audit team.

·         Progress made in respect to business continuity.

·         The difference between CHAPS and BACS payments and the cost to the council.

·         The extent of payments made to the council without an invoice.

·         The Council’s interaction with Private Care Provides was a topic which the Council’s Children and Young People’s Scrutiny Committee may wish to consider as a scrutiny review topic for the nextyear.

RESOLVED – That the report be noted.

To consider a report of the Chief Internal Auditor.

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

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

The Chief Internal Auditor submitted a report (copies of which had been circulated) setting out progress made in the period 1^st April – 31^st May 2012 against the approved audit plan for the year.

The following comments were made/issues raised:-

·         Councillors suggested that training be provided on how Internal Audit approach the audit of new and emerging areas such as the ‘Making Choices, Having Control Initiative’

·         Further information was sought in respect to the work undertaken by the Audit Services relating to the Potential fraudulent Council Tax bill.

RESOLVED – That the Corporate Director, Corporate & Support Services be requested to provide training for Councillors in respect to ‘Making Choices, Having Control’ and that further information be circulated to Councillors in respect to the work undertaken by the Audit Services relating to the Potential fraudulent Council Tax bill.

To consider a report of the External Auditor.

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

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

Tim Watkinson and Andrew North (Audit Commission) submitted a report (copies of which had been circulated) providing an update on progress that the Audit Commission had made in delivering on their responsibilities and updating the Committee on the externalisation of the Audit practice. The report set out a number of issues which the Audit Committee may wish to consider in the future.

RESOLVED – That the report be noted.