The Audit Committee of Manchester Council met on Tuesday 16 June 2026 to review the Council's financial performance and governance arrangements. Key discussions were scheduled to include the Treasury Management Outturn Report for 2025-26, the Annual Internal Audit Assurance Opinion and Report for the same year, and the draft Annual Governance Statement for 2025-26. The committee was also set to consider the Internal Audit Plan for 2026/27 and receive an update from the external auditors.

Treasury Management Outturn Report 2025-26

The committee was scheduled to consider the Treasury Management Outturn Report for the financial year 2025-26. This report, prepared by the City Treasurer, was intended to provide an overview of the Council's treasury management activities during the year and an update on activity in 2026-27. The report was expected to detail the Council's borrowing and investment activities, its portfolio position as of 31 March 2026, and a review of economic conditions that influenced treasury management decisions. It was also to include information on treasury borrowing, the capital financing budget forecast, and compliance with prudential indicators and treasury limits. The committee was asked to consider and comment on the information presented in the report.

Annual Internal Audit Assurance Opinion and Report 2025/26

The Assistant Director, Assurance and Risk, was scheduled to present the annual assurance opinion and report on the Council's systems of governance, risk management, and internal control for the period April 2025 to March 2026. This report is a requirement of Public Sector Internal Audit Standard 2450 and is intended to inform the Council's governance statement. The report was expected to provide an overall opinion on the adequacy and effectiveness of the Council's framework, summarising the outcomes of audit work and other key sources of assurance. It was also to detail the audit opinions issued during the year, categorised by assurance level (Substantial, Reasonable, Limited, or No), and highlight key risks and issues arising from the audit and assurance process, including those related to regulatory oversight, core systems of control, and the delivery of the audit plan. The committee was recommended to consider and comment on this report.

Draft Annual Governance Statement 2025/26

The committee was scheduled to review the draft Annual Governance Statement (AGS) for 2025/26. This statement, prepared by the City Treasurer and Interim Deputy Chief Executive, follows an annual review of the Council's governance arrangements and systems of internal control. The AGS outlines the Council's responsibilities under its Code of Corporate Governance, which is based on the CIPFA/SOLACE 'Delivering Good Governance in Local Government: Framework'. The report detailed changes made to the AGS approach and structure in response to the 2025 CIPFA addendum, including a streamlined structure with an executive summary, introduction, assessment of effectiveness, and sections on addressing governance challenges and the action plan for 2026/27. Appendices were to provide details on the governance framework and a governance map. The committee was asked to comment on the draft AGS and confirm its sign-off.

Internal Audit Plan 2026/27

The Assistant Director, Assurance and Risk, was scheduled to present the proposed Internal Audit Plan for 2026/27. This risk-based plan is designed to support an annual opinion on the effectiveness of the Council's governance, risk management, and internal control systems, in line with Global Internal Audit Standards (GIAS) and the CIPFA Code of Practice. The plan was to outline proposed audit coverage for the year, taking into account the Council's priorities and risks, including those identified in the Corporate Plan and Council Risk Register. The report was to detail the basis for the plan, its characteristics, resourcing, and planned areas of audit work, with a significant proportion dedicated to counter fraud and irregularity investigations. The committee was recommended to review and approve the plan.

External Auditor Update

The committee was also scheduled to receive an update from the external auditors, Forvis Mazars LLP. This update was expected to cover the progress of the 2025/26 audit, lessons learned from the 2024/25 audit, and the approach to rebuilding assurance following previous disclaimed audit opinions. The auditors intended to outline their planned approach to re-building assurance, including the potential use of a proof in total approach and historic testing of transactions, and to confirm the timetable for completing the audit. The report also included accounting updates from HM Treasury regarding non-investment asset valuation and IFRS 18 Presentation and Disclosure in Financial Statements.

Work Programme and Decisions Monitor

Finally, the committee was to review its Work Programme and Decisions Monitor. This report, from the Governance and Scrutiny Support Unit, provides an overview of previous committee decisions, items for information, and the draft Work Programme for the upcoming year. The committee was invited to discuss the information provided and agree any necessary changes to the work programme.