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Audit, Risk and Governance Committee - Monday, 27 July 2026 - 2.00 pm
July 27, 2026 at 2:00 pm Audit, Risk and Governance Committee View on council website Watch video of meeting Read transcript (Professional subscription required)Summary
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The Audit, Risk and Governance Committee of Lancashire County Council met on Monday 27 July 2026 to discuss a range of financial and governance matters. Key decisions included the approval of the draft work plan for 2026-27, noting the council's statement of accounts for 2025/26, and approving the Internal Audit Charter and Mandate. The committee also reviewed the external audit plans for both the council and the pension fund, and discussed the treasury management strategy update.
Constitution, Membership and Terms of Reference
The committee noted the appointment of County Councillor G Mirfin as Chair and County Councillor R Edwards as Deputy Chair for the 2026-27 municipal year. The membership of the committee, following the county council's Annual Meeting, was also noted, along with the committee's Terms of Reference. Members expressed concerns regarding the length of the agenda and discussed ways to improve the efficiency of future meetings.
Statement of Accounts 2025/26
Khadija Saeed, Head of Corporate Finance, and Gary Fielding, Corporate Director of Finance, presented the council's statement of accounts for 2025/26. Members were reminded that their role was to scrutinise key issues and provide governance oversight, rather than conduct a detailed accounting review. Discussions covered the reasons for underspends in capital investment programmes, the revaluation of waste facilities, and the ongoing pressures related to the Dedicated Schools Grant (DSG) deficit and SEND services. The committee was informed that the final audited accounts would be considered in November 2026. The committee noted the statement of accounts.
External Audit Plans
Ian Pinches and Michael Green from Grant Thornton UK presented the External Audit Plan for Lancashire County Council for 2025/26. Kelly Jarvis and Georgia Jones from Grant Thornton UK presented the External Audit Plan for the Lancashire County Pension Fund for 2025/26. Members were assured that work had commenced promptly and no issues had arisen that would threaten the planned completion dates. Discussions touched upon the valuation of Level 3 investments and the implications of Local Government Reorganisation for the pension fund. The committee noted both audit plans.
Treasury Management Strategy Update and 2025/26 Outturn
Khadija Saeed and Gary Fielding presented an update on the council's treasury management activities for 2025/26 and progress against the 2026/27 strategy. Members were informed about borrowing activity, investment performance, and the council's prudential indicators. A proposed change to the target profile for borrowing maturity was discussed, aiming to reduce longer-term borrowing costs given current economic conditions. The committee noted the update and recommended the proposed change to the prudential indicator to Full Council for approval.
Internal Audit Annual Report 2025/26 and Progress Report
Andrew Dalecki, Head of Internal Audit, presented the annual report, which summarised the work undertaken by the Internal Audit Service during 2025/26. He provided an overall conclusion of reasonable assurance
on the adequacy and effectiveness of the council's governance, risk management, and internal control arrangements. Discussions covered client satisfaction feedback, the IR35 audit, payroll controls, and passenger transport oversight. The committee noted the report.
Internal Audit Charter and Mandate
Andrew Dalecki presented the updated Internal Audit Charter and Mandate. This document outlines the framework for the Internal Audit Service's operations and ensures its independence and compliance with professional standards. The committee approved the charter and mandate.
Procurement Waivers and Non-Compliance 2025-26
Paul Fairclough, Head of Procurement and Contract Management, reported on procurement waivers and non-compliance for the period October 2025 to March 2026. He highlighted that the total value of waivers and non-compliance represented a small percentage of the overall contract value awarded. Discussions focused on strengthening contract management and commercial oversight, particularly in light of Local Government Reorganisation. The committee noted the report.
Corporate Risk and Opportunity Register – Quarterly Update
Hannah Race, Head of Governance and Democratic Services, presented the updated Corporate Risk and Opportunity Register. The register reflected the council's current operating environment, and members were assured that risk management arrangements were robust. No new risks had been escalated, and most risk scores remained consistent or had reduced due to mitigating actions. The committee approved the updated register.
Annual Report of the Audit, Risk and Governance Committee
The Chair presented the committee's annual report for 2025/26, summarising its activities and effectiveness. Members welcomed the report and thanked the former Chair, County Councillor Hannah Whalley, for her contributions. The committee noted the annual report.
Draft Work Plan 2026-27
The committee's draft work plan for 2026-27 was presented. This plan outlines the standard reports expected to be presented throughout the year, with the understanding that it remains subject to change. The committee also considered its training plan, with a focus on financial management, treasury management, and fraud risk. The draft work plan was approved.
Urgent Business
There was no urgent business to discuss.
Date of Next Meeting
The next meeting was scheduled for Monday 12 October 2026.
Exclusion of Press and Public
The committee resolved to exclude the press and public from the meeting for the consideration of specific items due to the likely disclosure of exempt information.
Appendix 'A' to Item 11 - Procurement Waivers and Non-Compliance 2025-26
The committee noted the private and confidential Appendix 'A'.
Appendix 'C' to Item 12 - Corporate Risk and Opportunity Register – Quarterly Update
The committee noted the private and confidential Appendix 'C'.
Counter Financial Crime, Investigations and Whistleblowing Annual Report
Caroline Ayres, Investigations Manager, presented the private and confidential Counter Financial Crime, Investigations and Whistleblowing Annual Report. The committee noted the report and approved the updated Counter Financial Crime, Financial Crime Sanctions and Prosecution, and Whistleblowing policies.
Update on the Overpayment of Salaries
Allison Leach, Head of Payroll, presented a private and confidential update on salary overpayments. Members requested that future reports include information on payroll controls relating to school staff. The committee noted the update.
Delegated decisions linked to this meeting
Decision summaries below are AI-generated from the council’s published record. Check the council source or the full decision page before relying on them.
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Counter Financial Crime, Investigations and Whistleblowing Annual Report
Recommendations ApprovedThe Audit, Risk and Governance Committee of Lancashire Council approved the Counter Financial Crime, Investigations and Whistleblowing Annual Report on 27/07/2026. The report details the council's current crime landscape, completed investigations, whistleblowing complaints, and ongoing anti-financial crime work.
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Update on the Overpayment of Salaries
Recommendations ApprovedThe Audit, Risk and Governance Committee of Lancashire Council approved recommendations on 27/07/2026. The committee received an update on salary overpayments and steps to reduce recovery amounts.
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Appendix 'C' to Item 12 - Corporate Risk and Opportunity Register - Quarterly Update
Recommendations ApprovedThe Audit, Risk and Governance Committee of Lancashire Council approved recommendations on 27/07/2026.
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Appendix 'A' to Item 11 - Procurement Waivers and Non-Compliance 2025-26
Recommendations ApprovedThe Audit, Risk and Governance Committee of Lancashire Council approved recommendations on 27/07/2026. This concerned Appendix 'A' to Item 11, Procurement Waivers and Non-Compliance 2025-26.
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External Audit: Lancashire County Pension Fund External Audit Plan 2025/26
Recommendations ApprovedThe Audit, Risk and Governance Committee of Lancashire Council approved the Lancashire County Pension Fund External Audit Plan 2025/26 on 27 July 2026. The plan outlines the scope and timing of the statutory audit for the year ending 31 March 2026. It details significant risks, including management override of controls, valuation of Level 3 investments, and valuation of directly held property.
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Statement of Accounts 2025/26
Recommendations ApprovedThe Audit, Risk and Governance Committee of Lancashire Council approved the 2025/26 Statement of Accounts on 27 July 2026. The committee noted that the Statement of Accounts for the 2025/26 financial year, including those for the Lancashire County Pension Fund, were available for review and had been published on the Council's website.
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Internal Audit Annual Report 2025/26 and Progress Report
Recommendations ApprovedThe Audit, Risk and Governance Committee approved the Internal Audit Annual Report 2025/26 and Progress Report on 27/07/2026. The committee received a conclusion of reasonable assurance over the council's systems of internal control and governance for 2025/26.
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Draft Work Plan 2026-27
Recommendations ApprovedThe Audit, Risk and Governance Committee of Lancashire Council approved the draft work plan for 2026-27 on 27/07/2026. The committee also considered the training plan.
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Treasury Management Strategy Update and 2025/26 Outturn
Recommendations ApprovedThe Audit, Risk and Governance Committee of Lancashire Council approved recommendations regarding treasury management strategy and the 2025/26 outturn on 27/07/2026. The committee reviewed the 2025/26 treasury management activity and noted progress against the current financial year's strategy. They also approved a recommendation to Full Council to amend the 2026/27 prudential indicator relating to the profile of borrowing.
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External Audit: Lancashire County Council External Audit Plan 2025/26
Recommendations ApprovedThe Audit, Risk and Governance Committee of Lancashire Council approved the External Audit Plan 2025/26 on 27 July 2026. The plan outlines the approach to auditing the council's financial statements and value for money arrangements for the year ending 31 March 2026. The approved plan includes specific audit procedures for identified significant risks such as management override of controls, valuation of land and buildings, investment properties, and the pension fund net asset/liability.
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Annual Report of the Audit, Risk and Governance Committee
Recommendations ApprovedThe Audit, Risk and Governance Committee of Lancashire Council approved recommendations on 27/07/2026. The committee reviewed its annual report for 2025-26, assessing its effectiveness and identifying areas for improvement.
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Procurement Waivers and Non-Compliance 2025-26
Recommendations ApprovedThe Audit, Risk and Governance Committee of Lancashire Council approved recommendations on 27/07/2026 regarding procurement waivers and non-compliance. The committee considered a report detailing 11 waivers and one instance of non-compliance between October 2025 and March 2026. The council is developing its Commercial function to improve contract management and commissioning.
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Corporate Risk and Opportunity Register – Quarterly Update
Recommendations ApprovedThe Lancashire Audit, Risk and Governance Committee approved the updated Corporate Risk and Opportunity Register on 27/07/2026. The register has been refreshed to reflect the council's current operating environment. No new risks were added, and scores for school places and national policy risks have reduced.
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Internal Audit Charter and Mandate
Recommendations ApprovedThe Audit, Risk and Governance Committee approved the Internal Audit Charter and Mandate on 27/07/2026. This decision establishes the framework for Lancashire County Council's Internal Audit Service. The approved charter includes additional provisions regarding the management responsibilities of the Head of Internal Audit for the Investigation Service and Health, Safety and Quality functions.
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Constitution, Membership and Terms of Reference
Recommendations ApprovedThe Audit, Risk and Governance Committee of Lancashire Council approved recommendations on 27/07/2026. The committee noted the appointment of County Councillor G Mirfin as Chair and County Councillor R Edwards as Deputy Chair for the 2026-27 municipal year. It also noted the membership of the committee and its Terms of Reference.
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Minutes of the Meeting held on 27 April 2026
Recommendations ApprovedThe Audit, Risk and Governance Committee of Lancashire Council on Monday 27 July 2026 approved the minutes of the meeting held on 27 April 2026. The minutes were to be confirmed and signed by the Chair.
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