To consider any apologies for absence.

There were no apologies received.

To consider declarations of interest in relation to any item on the agenda.

There were no declarations of interest in relation to any item on the agenda.

To consider the minutes of the previous meeting held on 2^nd October 2025.

RESOLVED that the minutes of the last meeting held on 2^nd October 2025 be approved as an accurate record.

To consider the 2024/25 Audit Completion Report (DFP/15/2526).

Director of Finance and Procurement, Mike Rea, introduced the report noting that the Auditor’s Completion Report confirmed that Forvis Mazars had completed the audit of the Authority’s financial statements. Mike Rea noted that Forvis Mazars anticipated issuing an unqualified opinion following this Audit Committee, confirming that the 2024-25 financial statements gave a true and fair view of the financial position of the Authority as of 31^st March 2025.

Members noted that the Audit Completion Report identified internal control weaknesses within the production of the 2024-25 Statement of Accounts and Mike Rea confirmed that the team was committed to addressing this through targeted improvements in the 2025-26 production process, ensuring timely production and full compliance with the updated codes and regulations.

The report also identified several additional areas for attention and Members were aware of the significant team changes over the last 18 months. These, alongside vacancies and long-term sickness impacted the 2024-25 production timeline and the team were working on forward planning to prevent future re-occurrence.

Members noted that Forvis Mazars identified no significant weaknesses regarding the Authority’s value for money arrangements, specifically, the Auditors found the systems for securing economy, efficiency and effectiveness in the use of resources to be sufficient, requiring no formal recommendations. Mike Rea welcomed Audit Partner for Forvis Mazars, Karen Murray to present the Audit Completion Report.

Karen Murray was pleased to present the Audit Completion Report which concluded their work. She advised that she received the Authority’s accounts on 2^nd July, which was past the deadline of 30^th June, however, this wasn’t a particular concern. It was acknowledged that this audit had been much more difficult than in previous years and so, the Authority would receive more amendments in this set of accounts than usual.  Concerns were raised about the quality of the accounts that were presented this year and the technical capacities in the team to support what was a very complex set of accounts, however, Karen recognised that there was a commitment to getting it right.

Karen Murray noted that four significant areas of risk had been identified in the Audit Strategy Memorandum. The first one was in respect of the management override of controls, and the risk was around matters where management could directly influence the accounts and make decisions that changed the figures within the accounts. Karen confirmed that this work had been completed with no problems identified.

The second area of significant risk was in relation to the Authority’s pension scheme and the assets and liabilities that the Authority disclosed in respect of the two pension schemes. Karen confirmed that all the work had been completed. The only challenge was that updated information became available as time went on due to relying on work that the actuary does at a point in time. This resulted in some amendments to the accounts, however Karen reassured Members that it was very unlikely that there would ever be a situation that no amendments would ever be required in this  ...  view the full minutes text for item 12.

To consider the report relating to the Statement of Accounts 2024/25 Approval of Audited Statements (DFP/14/2526).

Director of Finance and Procurement, Mike Rea, advised Members that the Authority was required to prepare a set of annual financial statements in a format that was set out under the relevant accounting code and standards which must be approved and signed off for publication by the Authority. Members were aware that the published statements of accounts must include an opinion from external auditors, Forvis Mazars on whether the statements gave a true and fair view of the financial position of the Authority and had been prepared in accordance with the relevant codes of practice.

Members’ attention was drawn to paragraphs 10 - 25 on pages 67 - 72 of the agenda which provided background to the four financial statements in the statements of accounts. It was explained that these paragraphs summarised the 2024-25 movements in the statements and explained any significant changes from the previous year’s figures.

Mike Rea advised Members that paragraph 20 outlined the Balance Sheet movements between 2023-24 and 2024-25, and the movements on the Authoritys’ assets and liabilities. Members noted that the codes and regulations required a number of notional accounting entries and adjustments that were significant in value to be included in the Statement of Accounts such as the depreciation charge. It was explained that they were notional in nature, therefore, they did not form part of the cost that must be funded by the Authorities approved general fund budget.

It was acknowledged that as per paragraph 8 of the report, the budgeted outturn position had not changed to that report of the Policy and Resources Committee in July 2025. Mike Rea added that the report recommended that Members delegated Authority to the Chair of the Audit Committee and the Director of Finance and Procurement to sign the 2024-25 Statement of Accounts and approve for publication and note that the Director of Finance and Procurement would sign the Letter of Representation.

The Chair, Councillor Jeanie Bell, directed Members’ attention to the information around the reduction in unusable reserves in paragraph 19, page 70 of the agenda and asked for clarification on what drove this reduction and whether it affected the financial resilience of the Authority going forwards. She also asked that given the volatility of pension liabilities, what actions were being taken to mitigate future functionalities in the unusable reserves.

Mike Rea referred Members to the table in paragraph 21, page 134 of the agenda which showed a further breakdown of the unusable reserves. He explained that Members could see the difference from one year to another and that the pensions reserve from one year had gone from £856m down to £775m. He added that this tended to have the greatest impact on the unusable reserves figure. These fluctuations in the pension reserve resulted from the actuarial assumptions and demographics data used when performing the annual liability calculation.

Councillor Chris Page mentioned the statement on page 193 of the agenda addressing that no significant weaknesses were identified, and that the Authority had established specific  ...  view the full minutes text for item 13.

To consider the Internal Audit Progress Report April to January 2026 (DFP/13/2526).

The report was introduced by Director of Finance and Procurement, Mike Rea, who advised Members that three audits had been completed up to January 2026. Members noted that all three audits had been issued with a substantial audit opinion. He explained that the remaining audit work would be completed as planned in quarter four and this allowed the auditors to review how systems and controls had operated over the majority of the year. Mike added that the Year End Internal Audit Report would be reported back for Members’ consideration in May. Members were aware that the internal audit services were provided by Liverpool City Council, and he welcomed Hayley Dickinson-Moore, Lead Audit Manager, to take Members through the progress report in more detail.

Hayley Dickinson-Moore advised Members that three reports were completed, all of which were given substantial assurance and had no recommendations.  She explained that there was a further audit report in draft and two additional audits ongoing, however, these were all at the final stages so hoped to be finalised very quickly.  The Authority’s impressive work was commended as 22 recommendations had been closed and only 4 remained outstanding.

The Chair commented that it was a pleasing report and thanked all the team for the level of work that had gone into every piece of work on the agenda.  She added that she could not wish for more information or transparency.

RESOLVED that the contents of this report be noted.

Close

The date of next meeting will be after the Annual General Meeting.