The Audit Committee of Stockport Council met on Wednesday 30 September 2026 to review the Internal Audit Progress Report and the 2025/26 Statement of Accounts and Audit Completion Report. Key discussions included the progress of internal audits, the council's financial position, and the effectiveness of the audit committee itself.

Internal Audit Progress Report

The committee received the Internal Audit Progress Report for the second quarter of the financial year. John Pearsall, Head of Internal Audit and Risk Services, presented the report, highlighting that seven audits had been completed and ten were in draft since the last update. He noted that a new project assisting with the finance and purchase-to-pay system was considered a high-risk project for the organisation. Members welcomed the use of Power BI for data visualisation, making reports easier to understand.

Concerns were raised by Councillor Philip Mills regarding the ongoing pressure on Internal Audit resources and the potential risks associated with reduced planned work. Mr. Pearsall assured the committee that the audit plan remained risk-based and that technology, joint working with other authorities, and external specialist support were being used to enhance resilience. He stated he was confident that sufficient evidence was being obtained to support the annual opinion.

The committee discussed the limited assurance review of Education, Health and Care Plan (EHCP) governance, noting challenges with leadership, assessment backlogs, and professional input. It was highlighted that additional one-off resource had been identified to address the assessment backlog. Members felt that further assurance should be provided through a briefing or workshop, rather than waiting for the next routine quarterly update. The process for sharing limited assurance findings with relevant scrutiny committees and tracking actions from audit reports was also discussed, with suggestions for a wider approach to reporting and follow-up.

The audit of Deprivation of Liberty Safeguards (DOLS) was reported as complete, with a significant reduction in the backlog of applications. Changes in the legal definition of deprivation of liberty were expected to impact future demand. The deferral of the terrorism management review was explained as being due to relevant work being undertaken through the annual insurance review, with the subject to be reconsidered in the next risk assessment.

Annual Chair Report on the Effectiveness of the Audit Committee

Councillor Jon Byrne, Chair of the Audit Committee, presented his annual report on the committee's effectiveness during the 2025/26 financial year. He thanked the former Chair, Sue Glithero, previous members, the co-opted member, and the internal and external audit teams for their contributions. Councillor Byrne highlighted the value audit brings to the organisation and the importance of the conversations that take place within the committee. He also noted the benefits of attending North West Audit Chairs briefings for learning about best practice and benchmarking.

A question was raised about how the committee could obtain external validation of its effectiveness beyond self-assessment. The Chair referred to the learning gained from other audit chairs, the perspective provided by the co-opted member, and the ongoing presence of the external auditors. The external auditors confirmed that they would report any concerns if the committee was not fulfilling its remit appropriately. Officers agreed to review the format of future effectiveness reports and consider alternative ways to demonstrate the committee's effectiveness.

2025/26 Statement of Accounts and Audit Completion Report

The committee considered the 2025/26 Statement of Accounts and the Audit Completion Report together. Jonathan Davies, Director of Finance, reported that the draft accounts were submitted by the statutory deadline of 30 June 2026, and no questions had been received during the public inspection period. He thanked the finance and external audit teams for their professionalism and hard work, noting that the council was one of a small number nationally close to completing the audit and securing final approval by the end of September.

Alistair Newall, Audit Director from Forvis Mazars, introduced Hendrix, the team leader for the audit, and echoed the positive message about the progress made. He confirmed that an unqualified audit opinion was expected, which is the desired outcome.

Members discussed an £11.292 million overstatement in the valuation of Housing Revenue Account (HRA) dwellings arising from a formula error. Officers explained that a different valuation system and further pre-year-end work would be implemented to prevent recurrence. The importance of robust quality assurance within the tight accounts timetable was emphasised. Automated cross-checking was noted as an improvement for consistency.

The delegation of approval for any further non-material changes to the Statement of Accounts to the Director of Finance in consultation with the Chair was recommended. Material changes would be brought back to a future committee meeting.

Regarding the airport car park investment, officers confirmed that a dividend had been received for 2025/26.

The committee resolved to note the contents of the reports and, in the event of no material changes to the Statement of Accounts, delegate the approval to the Director of Finance in consultation with the Chair, no later than 31 January 2027.

The meeting closed at 7:02 pm.