The Audit and Governance Committee of the Lancashire Combined County Authority met on Monday 13 July 2026 to review key updates, discuss governance documents, and consider audit reports. The committee noted the draft 2025-26 Statement of Accounts. The draft Code of Corporate Governance and the draft Annual Governance Statement for 2025-26 were presented for approval.

Key Updates for Lancashire Combined County Authority Committees

Matthew Sidgreaves, the Chief Operating Officer, provided an update on the Authority's progress. He highlighted the Royal Assent of the English Devolution and Community Empowerment Act, which established three tiers of Strategic Authority, with Lancashire being a Foundation Strategic Authority. Discussions were ongoing with the Minister for Devolution, Faith and Communities regarding future devolution arrangements. The Authority had also established its offices and appointed a Chair and Vice Chair for the 2026/27 year. Progress was noted across the Authority's strategic priorities of economy, transport, and skills, with work underway on a Spatial Development Strategy for Lancashire. Advisory Boards for Economy, Transport, and Skills had also reviewed their progress and planned future agendas.

Draft LCCA Code of Corporate Governance

The committee considered the draft Code of Corporate Governance, which sets out how the Authority will be directed and controlled, based on the CIPFA/SOLACE Delivering Good Governance in Local Government Framework. The Code establishes the Authority's core principles, behaviours, and accountability arrangements. Following discussion, the committee was asked to approve the draft Code, noting that it would be reviewed annually and delegating authority to the Monitoring Officer and Chair of the Audit and Governance Committee to make any minor amendments.

Draft Annual Governance Statement 2025-26

Hannah Race presented the draft Annual Governance Statement for 2025-26. This statement provides an assessment of the Authority's governance, risk management, and internal control arrangements during its establishment year. The statement concluded that the Authority's governance arrangements were fit for purpose, with core frameworks and policies in place, supported by constituent councils. The committee was asked to approve the draft statement, noting that it would be subject to external audit review and that the improvement plan would be taken forward through existing governance and officer structures.

LCCA 2025/26 Statement of Accounts

Gary Fielding, substituting for Mark Wynn, presented the draft Statement of Accounts for 2025-26. He explained that the accounts had been published by the statutory deadline of 30 June 2026 and were available for public inspection. The committee was asked to note the draft accounts, with the understanding that they would be replaced with final accounts once approved by the Audit and Risk Committee following the external audit.

Internal Audit Annual Report and Progress Report

Laura Rix, Audit Manager, presented the Internal Audit Annual Report for the year ended 31 March 2026, providing a reasonable assurance opinion on the Authority's governance, risk management, and internal control arrangements. She also provided an update on the Internal Audit Progress Report for 2026/27, noting that three audit days had been completed so far, with work ongoing on grant audits, adult skills, and transport audits.

Lancashire Combined County Authority External Audit Plan and Strategy

Debra Chamberlain from KPMG presented the External Audit Plan and Strategy for the year ending 31 March 2026. She outlined the planned scope, materiality levels, and identified significant risks, including grant recognition and management override of controls. The Value for Money risk assessment highlighted governance and capacity/resources as areas of significant risk. The committee was asked to consider and comment on the plan.

Corporate Risk and Opportunity Register - Quarterly Update

Hannah Race presented the quarterly update to the Corporate Risk and Opportunity Register. She noted that no new corporate risks had been escalated, but the scores for 'Operational Capacity and Resources' and 'Strategic Planning and Financial Sustainability' had increased. The committee discussed the timeline for risk score reduction and agreed to receive monthly email updates on these two key risks.

Whistleblowing Policy Update

Andrew Dalecki reported that there had been no whistleblowing allegations received in the six months since the policy was approved in January 2026. He noted that this was expected for a new authority and that updates would continue to be provided.

Audit and Governance Committee Work Programme 2026/27

The committee considered the proposed work programme for 2026/27, which included standing items such as updates from the Chief Operating Officer, Internal Audit, and the Corporate Risk and Opportunity Register, as well as annual reports from the External Auditor. A suggestion was made to adopt a colour-coded system for the action log to indicate the status of items. The VAT recovery was confirmed as closed.

Urgent Business and Date of Next Meeting

There was no urgent business to discuss. The date of the next meeting was confirmed as Monday 28 September 2026 at 3:00 pm.