The Lancashire Combined County Authority - Audit and Governance Committee met on Monday 28 September 2026 to review the Chief Operating Officer's update, the Corporate Risk and Opportunity Register, and the Internal Audit Progress Report. The committee also considered the draft Auditor's Annual Report and the Audit and Governance Committee Work Programme for 2026/27.

Chief Operating Officer's Update

The committee received an update on the progress of the Lancashire Combined County Authority (LCCA) across its strategic priorities of transport, economy, and skills, as well as the emerging Spatial Development Strategy. A significant development reported was a meeting between the Leaders of Lancashire County Council, Blackburn with Darwen Council, and Blackpool Council with the Minister for Local Government, Devolution and Regional Growth. This meeting was described as positive and constructive, informing ongoing discussions about future devolution in Lancashire.

The reporting arrangements for the LCCA's advisory boards were discussed. It was noted that these meetings are held privately and their minutes are not publicly available. However, reports providing updates from these boards are submitted to the LCCA board to ensure transparency. A suggestion was made to appoint non-voting co-opted members from the Audit and Governance Committee and the Overview and Scrutiny Committee to the advisory boards to enhance awareness of their work. The committee was advised that any such change would require amendments to the existing constitutional arrangements. Members expressed differing views on this proposal, emphasizing the importance of independent scrutiny and avoiding duplication. It was agreed that advisory board minutes could be shared with committee members, and the committee noted the existing governance and reporting arrangements.

The committee resolved to note the Chief Operating Officer's update and agreed that the minutes from the LCCA Economy, Skills, and Transport Advisory Boards be made available to members of the Lancashire Combined County Authority Audit and Governance and Overview and Scrutiny Committees.

Corporate Risk and Opportunity Register - Quarterly Update

The committee reviewed the quarterly update of the Corporate Risk and Opportunity Register. It was noted that the overall corporate risk profile remained stable, with no new risks added since the previous report. One risk had increased, while the two highest-rated risks – operational capacity and resources, and strategic planning and financial stability – remained unchanged with scores of 16. The committee sought assurance that the target risk score of 16 remained achievable by March 2027. Members were informed that the target date is continuously reviewed alongside mitigating actions and progress updates, and that the current target date reflects the appropriate position at this stage.

The committee resolved to approve the Corporate Risk and Opportunity Register and the actions being taken to manage identified risks.

Internal Audit Progress Report

The committee received an update on the internal audit activity undertaken as part of the 2026/27 audit plan. A total of 14.5 audit days had been completed, focusing on audit planning, grant assurance, National Fraud Initiative activity, and audit management. Initial work had begun on the Local Transport Authority functions audit, with more detailed activity planned for later in the year as arrangements mature. Preparatory work for the Adult Skills Fund audit was also noted, and delivery of the audit plan was reported to be on track for completion by the year-end.

The committee resolved to note the Internal Audit Progress Report.

Auditor's Annual Report (Draft)

The committee considered the draft External Auditor's Annual Report, noting that it was a work in progress and a final version would be presented at a future meeting. The auditor's value for money assessment was discussed, including a review of governance arrangements and organisational capacity. The auditor concluded that there were no significant weaknesses in governance arrangements, although further work would be undertaken as part of the financial statements audit. The committee also noted that work was ongoing to assess whether capacity and resource pressures constituted a significant weakness.

Members were informed that the materiality threshold for the financial statements audit had been reduced from £1 million to £33,000 to reflect the authority's income and expenditure levels. Assurance was sought regarding the adequacy of resourcing arrangements, with officers confirming that financial support was provided through operational support from Blackpool Council and strategic support from Lancashire County Council. While some challenges had been encountered, officers confirmed that appropriate resources were being made available and efforts were underway to streamline arrangements.

The Chair requested a private meeting with key officers to review progress, given the upcoming deadlines for the value for money statement and end-of-year statements.

The committee resolved to note the draft Auditor's Annual Report and agreed that a private progress meeting be arranged between the Chair and relevant officers prior to the next committee meeting.

Audit and Governance Committee Work Programme 2026/27

The committee considered the proposed Audit and Governance Committee Work Programme for 2026/27. The programme was noted to have been developed to include future agenda planning. The committee agreed to reschedule the December meeting to January to allow for more timely consideration of the final Statement of Accounts before its sign-off at the end of January. The Chair noted that three actions from the previous meeting remained outstanding and requested that future updates on open actions include target completion dates and progress updates to support effective monitoring and timely resolution.

The committee resolved to note the Audit and Governance Committee Work Programme for 2026/27.

Urgent Business and Date of Next Meeting

The Chair confirmed that there was no urgent business for consideration. The date of the next meeting was to be confirmed.