The Audit Committee of Stockport Council was scheduled to review several key reports concerning the council's financial health, internal audit progress, and risk management. Discussions were planned around the 2023/24 Statement of Accounts audit update, internal audit progress, the Annual Governance Statement action plan, the corporate risk register, and the external audit progress report.

2023/24 Statement of Accounts Audit Update

The committee was scheduled to consider a report from the Assistant Director for Finance (Interim Section 151 Officer) regarding the audit of the council's 2023/24 Statement of Accounts. This report was expected to provide an update on the progress of the audit, which commenced in September 2024 and was anticipated to conclude in early 2025. The report noted that the external auditors, Forvis Mazars LLP, were responsible for this audit. It also highlighted the government's introduction of local audit backstop dates, with a deadline of 13 December 2024 for audits up to and including 2022/23, and 28 February 2025 for the 2023/24 accounts. The report indicated that the audit work for the 2023/24 Statement of Accounts was stretching into early 2025, and that many local authorities might face modified or disclaimed opinions if audits are not completed by the backstop deadlines. The committee was asked to note the contents of this report.

Internal Audit Progress Report

A report from the Assistant Director for Finance (Interim Section 151 Officer) was scheduled for discussion, detailing the progress made by internal audit against the Risk-Based Internal Audit Plan approved in March 2024. The report covered the period from June to October 2024 and was intended to inform members of the resources utilised and the status of ongoing work. It included updates on completed audits, audits at the draft report stage, and fieldwork and planning stages for both the 2023/24 and 2024/25 audit plans. The report also provided details on counter-fraud work, investigations, risk management arrangements, and project advisory work. A significant section of the report was dedicated to an update on the National Fraud Initiative (NFI), explaining its data matching processes and the outcomes of recent NFI exercises, which identified anomalies requiring further investigation. The committee was requested to note the contents of this progress report.

Annual Governance Statement Action Plan

The committee was scheduled to consider a report providing an update on the Annual Governance Statement (AGS) Action Plan. This report was the first update on the current council's AGS, which had been approved in July 2024. It detailed the actions proposed for 2024/25 to address governance issues, including the transformation programme, delivering the Medium-Term Financial Plan (MTFP), and the Stockport Integrated Care System. The report highlighted ongoing efforts to ensure robust governance for the transformation programme, which is aligned with the council's One Future strategy and Medium Term Financial Plan (MTFP). It also provided an update on the challenging financial position, with a forecast outturn deficit of £3.718m at Quarter 2, and detailed the ongoing work to address financial recovery plans. The committee was asked to note the report.

Corporate Risk Register Update

A report was scheduled to provide the Audit Committee with an update to the Corporate Risk Register (CRR) for Quarter 2 of 2024/2025. The report indicated minor changes to the narrative on most existing risks, with specific attention drawn to updates on governance arrangements, financial figures reflecting the most recent forecasts, and links between financial risks and demand pressures. It also noted emerging risks around the Dedicated Schools Grant (DSG) funding deficit and the potential impact of the recent Budget on council finances. The report detailed ongoing work by the Head of Internal Audit and Risk Manager to develop and embed risk management arrangements across directorates, with plans to roll out an audit recommendations tracker to all directorates from April 2025. The committee was asked to note the contents of this update report.

External Audit Progress Report

The committee was scheduled to receive a report from the external auditors, Mazars, providing information on the progress of their responsibilities as external auditors to the council. The report detailed the progress of the audit for the year ending 31 March 2024, noting that planning and fieldwork had commenced in September and detailed testing was underway, with an anticipated opinion in early 2025. Specific areas of progress were outlined, including work on statutory records, expenditure and income testing, fraud and related parties, cash flow statements, investment properties, property, plant and equipment, investments, debtors, loans and borrowing, creditors, pensions, the Housing Revenue Account, the collection fund, and group accounts. The report also confirmed that work on the council's value for money arrangements had commenced. The committee was asked to note the audit progress report.