The Audit Committee of Stockport Council met on Wednesday 10 December 2025 to review the STAR Procurement update report, discuss internal audit progress, and consider the external auditors' findings on the council's financial statements. Key decisions included the approval of the 2024/25 audited statement of accounts and noting the draft management letter of representation.

STAR Update Report

Nicola Cook, Director of STAR Procurement, and Michael Sellers, Assistant Director, presented an update on STAR's performance for the last financial year and the first quarter of the current financial year. They highlighted that £782,000 in revenue efficiencies had been achieved across all six partner councils, with £608,000 attributed to Stockport. Social value commitments from suppliers resulted in 35% of contract value being returned within the borough. The report also detailed STAR's new business plan for 2025-2028, which is structured around six key priorities: Protect, Pioneering, Prosperity, Professional, Partnerships, and People. The committee was asked to comment on and note the report.

Internal Audit Progress Statement 3 (2025-26)

John Pearsall, Head of Internal Audit, presented the third progress report for the financial year 2025-26. He noted that two investigations were ongoing: one concerning direct payments and another a whistleblowing allegation around discretionary housing payments. Pearsall also highlighted that the refresh of the corporate risk register was nearing completion, with a snapshot provided in Appendix E. The report detailed the methodology used for the risk assessment of the remaining audit plan, with discussions held with Heads of Service and Directors to defer certain audits to the next financial year. The committee was requested to note the contents of the progress report.

Audit Completion Letter

Alistair Newall and Itai Mafusire from Forvis Mazars presented the audit completion letter regarding the 2024/25 audit. They confirmed that the audit work was nearing completion, with only internal processes remaining before the audit opinion could be issued. The letter detailed several misstatements identified in relation to land and buildings valuations, investment property valuations, pensions, and group accounts. While some misstatements were adjusted by the council, others were deemed immaterial. The auditors raised internal control recommendations to improve future audit processes. The committee was asked to note the report.

2024/25 Statement of Accounts Report

Jonathan Davies, Director of Finance and Section 151 Officer, presented the 2024/25 Statement of Accounts. He thanked the finance team and Forvis Mazars for their work, noting that Stockport was among the first councils in Greater Manchester to present its audited accounts at this point. Davies highlighted that misclassifications identified during the audit had been amended where material, and minor amendments were made for readability. Two internal control recommendations were made concerning group accounts and asset valuations, to which the council had responded. He also noted a recommendation regarding the council's Dedicated Schools Grant (DSG) deficit position, which is a national issue. The committee was asked to consider and approve the statement of accounts, delegate approval in the event of final audit changes, and note the draft management letter of representation.

Signing of the 2024/25 Statement of Accounts

The committee noted the signing of the 2024/25 Statement of Accounts.

Draft Auditors Annual Report 2024/25

Alistair Newall from Forvis Mazars presented the draft auditor's annual report for 2024/25. He stated that the council had proper arrangements in place for securing economy, efficiency, and effectiveness in its use of resources, with no significant weaknesses reported. A recommendation was made regarding the council's Dedicated Schools Grant deficit position, highlighting its importance for future financial sustainability. The committee was asked to note the report.

Dates for Future Meetings

The dates for future meetings were noted as 25 March 2026.