The meeting was scheduled to cover a wide range of financial matters relating to the council, including updates from external and internal auditors, the draft statement of accounts for 2023/24, and a number of regular reports on the council's risk management and counter fraud activities.

Statement of Accounts for 2023/24

The committee was scheduled to receive a report from the Director of Corporate Services on the Statement of Accounts for 2023/24. The unaudited statement of accounts for 2023/24 was approved by the Chief Finance Officer, Julie Murphy, on 31 May 2024. The report explains that:

As a consequence of the audit a small number of amendments to the 2023/24 statement of accounts have been made which have been agreed with the External Auditors.

The most significant amendments relate to the presentation of pension liabilities on the balance sheet and the revaluation reserve, which has increased by £6.3m. The report also lists a number of disclosure misstatements in areas such as capital commitments, the dedicated schools grant, and senior officer remuneration.

External Auditors Update

The committee was also scheduled to receive an update from the council's external auditors, Forvis Mazars. The report submitted by Forvis Mazars summarised the external audit work carried out to date and highlighted areas of the audit where further work was still outstanding. The report concluded that:

We anticipate issuing an unqualified opinion, without modification, on the financial statements.

Counter Fraud Report Q2 2024-25

The committee was scheduled to be given the quarterly counter-fraud report, which detailed the work of the counter-fraud team in the second quarter of 2024-25. The report, submitted by the Counter Fraud Manager, Louise Steele, stated that 134 fraud referrals were received during the quarter. The report also noted that:

£77,700 in overpayments and savings were achieved during the quarter (£132,317 in the same period last year).

Internal Audit Report Q2 2024-25

The committee was also scheduled to receive the quarterly report on the work carried out by the internal audit team. The report, submitted by the Chief Internal Auditor and Compliance Officer, Shaun Knowles, concluded that substantial or adequate assurance opinions had been given for all audits completed during the period. The report lists each of the audits completed by the internal audit team, the scope of the audit, and the assurance opinion given. It also highlights any key areas for improvement found during each audit. The most significant audit concerned the council's whistleblowing process, which received an adequate assurance rating.

CIPFA Financial Management Code

The committee was scheduled to receive an update on the council's compliance with the CIPFA Financial Management Code (FM Code), which sets out principles of good financial management for local authorities. The report, submitted by the Deputy Chief Finance Officer, Samantha Smith, states that Rochdale Council has completed a self-assessment document each year since the FM Code was first implemented in 2021/22:

To show how the 6 main principles of the code, being Leadership, Accountability, Transparency, Standards, Assurance and Sustainability have been met.

Risk & Insurance Report Q2 2024-25

The committee was also scheduled to receive a report on risk management and insurance. The report, submitted by Shaun Knowles, summarises the work of the risk management and insurance team during the second quarter of financial year 2024-25. It highlights two red residual risks on the council’s corporate risk register: failure of the ICT system, and lack of organisational resilience in the event of a catastrophic event. The report also provides a breakdown of the insurance claims received, closed and outstanding during the quarter.

Public Sector Internal Audit Standards & Code of Practice

The final item scheduled to be discussed was the proposed changes to the Public Sector Internal Audit Standards and Code of Practice. The report explains that the Global Institute of Internal Auditors (IIA) and CIPFA are planning to introduce new standards for internal audit and a code of practice respectively, both of which are expected to come into effect on 1 April 2025. The report states that:

The Chief Internal Auditor & Compliance Officer is working with peers in other North West Local Authorities to ensure that each authority carries out necessary reviews to ensure compliance.