Agenda and draft minutes

Apologies for absence were given by Councilors Heather Anderson, Noordad Aziz and Mike Booth.

Councilor Vanessa Alexander substituted for Councilor Booth.

The Minutes of the Audit Committee held on the 23^rd of June 2025 were submitted for approval as a correct record.

Recommended – That the minutes be received and approved as a correct record.

The Minutes of the last Audit Committee held on the 23^rd of June 2025 were submitted for approval as a correct record.

Resolved – That the minutes be received and approved as a correct record.

To inform members of the Audit Reports issued during the period June 2025 – August 2025 and bring to the attention of the Committee what the key issues were.

Recommended – That the report be noted for informational purposes.

Angela Kelly, Senior Auditor, presented the Progress report to the committee. Noting that the update was regarding reports issued between the period of June 2025 and August 2025.

The target in place is to complete 98% of the Audit Plan by the end of the financial year.

The current projected out turn position for 2025/2026 is 85.7%.

The following Audits were carried out for the June to August 2025 period:

            Payroll – Limited Assurance

            9 Recommendations were given on pages 12 to 13 of the agenda.

Ms Kelly informed the committee that as the payroll system was relatively new and had not been audited before it was expected that there would be a number of recommendations. A follow up has been booked in for October 2025 to review the recommendations and what work has been done to implement the changes.

            External Consultancy Fees/ Costs – Comprehensive Assurance

            No issues reported.

            Waste Collection and Recycling – Comprehensive Assurance

            No issues reported.

General Data Protection Regulation and Document Retention Compliance – Substantial Assurance

            1 Recommendation made on page 14.

Councilor Alexander asked if this training would be in person or virtual.

Ms Kelly advised it would likely be run as a Hybrid meeting.

            ICT Help Desk – Comprehensive Assurance

            No issues reported.

Resolved – The committee noted the information.

To inform and update Audit Committee on the revised Internal Audit Charter and Mandate which has been updated to reflect both good working practices and also to ensure it remains aligned with the new Global Internal Audit Standards (GIAS).

Recommended – That the report be noted for informational purposes.

Angela Kelly, Senior Auditor, advised the committee on the revised Internal Audit Charter and Mandate which has been updated to reflect both good working practices and also to ensure it remains aligned with the new Global Internal Audit Standards (GIAS)

Ms Kelly advised of the changes to the new standards internal audit must work within. The GIAS have 5 domains which then break down into 15 principles and 52 core standards and state that Internal Audit must have an Internal Audit Charter and Mandate.

The updated Internal Audit Charter and Mandate 2025 is published as appendix 1 starting on page 19 of the agenda.

Resolved – The committee noted the changes.

To provide the Audit Committee with an update on the Council’s unaudited Statement of Accounts for the financial year 2024/25, in accordance with its Terms of Reference.

 Recommended - That the Audit Committee:

· Notes the contents of this report.

· Reviews the unaudited Statement of Accounts for 2024/25 (Appendix A).

Ben Cookson, Head of Finance, presented an update on the council’s unaudited statement of accounts for the 2024/2025 financial year, in accordance with its Terms of Reference.

Mr Cookson advised the committee that the Council has completed its draft Statement of Accounts for 2024/25 and published them for public inspection on 30 June 2025, meeting the statutory deadline. The inspection period ran for 30 days, concluding on 6 August 2025, with no public representations received.

The Unaudited Statement of Accounts 2024/2025 comprises of the following sections:

Narrative Report: Provides an overview of the Borough, the Council’s achievements, the Corporate Strategy, and commentary on financial performance.

Annual Governance Statement: Outlines the Council’s governance arrangements and the results of its annual review.

Statement of Responsibilities: Sets out the responsibilities of the Authority and the Chief Financial Officer.  

Core Financial Statements: Includes the Comprehensive Income and Expenditure Statement, Movement in Reserves Statement, Balance Sheet, and Cash Flow Statement.

Notes to the Financial Statements: Provides detailed supporting information, including accounting policies (Note 3).

Collection Fund Statement and Notes: Details the Council’s role as billing authority for Council Tax and Business Rates, including performance and year-end balances. Also includes information on the Lancashire Business Rates Pool.

Mr Cookson advised that the Council’s appointed auditors, Forvis Mazars are not anticipated to commence the audit until later in the financial year. The statutory backstop date for completion is 27 February 2026.

Resolved – The committee noted the report and reviewed the unaudited Statement of Accounts for 2024/2025

To update Committee Members on the current position regarding external audits of the Council’s Statement of Accounts, including:

· Completion of the 2023/24 audit and receipt of the audit certificate.

· Status of the 2024/25 accounts and audit cycle.

· Implications of the Government’s backstop legislation.

· Next steps required to ensure compliance with statutory deadlines.

Recommended - That the Audit Committee:

· Note the completion of the 2023/24 audit and receipt of the audit certificate.

· Note that the Council is now up to date with its audit obligations and operating on a normal audit cycle.

· Approve the scheduling of an Audit Committee meeting before 27 February 2026 to enable approval and publication of the 2024/25 audited accounts.

· Note that disclaimed audit opinions are expected for the next few years due to sector-wide challenges in rebuilding assurance.

· Note that £44,000 of Government grant funding has been received in the current financial year to support audit work, with a further £166,000 expected in early 2026.

Ben Cookson, Head of Finance, updated the committee to the national backlog and advised that legislation had been put into place to clear this. Mr Cookson advised we will likely see a disclaimed opinion for the following few audits.

An update was given for the 2023/2024 accounts which had been completed and the audit certificate received.

For the upcoming 2024/2025 accounts, Mr Cookson informed that the audit team is in a good position to meet the deadline of the 27^th of February 2026. These accounts are also likely to be disclaimed. After the 2024/2025 accounts the council should be back on a normal cycle.

Mr Cookson explained to the committee that £44,000.00 of Government Grant Funding had been received to support the increased audit workload with a further £166,000 expected early in 2026.

Resolved – The committee noted the information and approved the change in meeting date to meet the 27^th of February 2026 deadline.

Report to provide the Audit Committee with information regarding the progress in delivering the External Audit.

Recommended – That the committee note the report for informational purposes.

Mr Daniel Watson, Partner at Forvis Mazars, advised the committee at they were on track to deliver the completed audit for 2024/2025 accounts by the 27^th of February 2025. Mr Watson advised that a disclaimed opinion is likely to be given.

Mr Watson informed the committee that it would likely take a few years to build back up to an assured opinion and he would bring completed reports such as the Value for Money Report as they are completed.

An update was given as to the fees to Forzis Mazars.

            2021/2022 - £90,634.00

            2022/2023 - £39,654.00

            2023/2024 - £94,352.00

Resolved – The committee noted the information.