The Audit Committee of Oldham Council met on Wednesday 09 September 2026. The meeting reviewed progress on the 2025/26 Annual Statement of Accounts and received updates on various audit reports.

Treasury Management Report - Quarter 1 (April - June) 2026/27

The committee received the Treasury Management Report for the first quarter of the 2026/27 financial year. The report detailed the Council's treasury management activities, including its borrowing and investment positions. It noted that the Council's net borrowing had fallen to £188.482m by the end of the quarter, largely due to increased cash flow temporarily invested. The report also highlighted that the Council's borrowing remained below its Capital Financing Requirement (CFR), indicating an under-borrowed position.

The report provided an economic update, noting the impact of the Middle East conflict on energy prices and inflation, which remained above the Bank of England's target. It also discussed the Bank of England's decision to hold interest rates steady, despite inflationary pressures. The financial markets experienced volatility, with bond yields rising and falling throughout the quarter.

Regarding the Council's borrowing, the report indicated that no new borrowing had been undertaken in the first three months of the year, with a reduction of approximately £5m in the loan portfolio. It detailed the Council's holdings of LOBO (Lender's Option Borrower's Option) loans, noting that one such loan had been repaid due to a revised interest rate. The Council stated its intention to investigate opportunities to repay historical LOBO borrowing to achieve revenue savings.

In terms of treasury investment activity, the Council held £66.305m in invested funds at the end of the quarter. The report emphasised the Council's commitment to investing prudently, prioritising security and liquidity before yield. The budgeted investment rate for 2026/27 was 3.5%, with an actual rate of 3.78% achieved in the first quarter. All treasury management activities were reported to be in compliance with the Treasury Management Code and the Council's approved strategy. The report also included a review of Treasury Management Prudential Indicators, confirming compliance with limits on borrowing and investments.

Annual Statement of Accounts 2025/26

The committee received an update on the progress of the audit and the 2025/26 Draft Statement of Accounts. The external audit of the draft accounts was partially complete, with some sampling and valuation work remaining. The committee was asked to delegate the formal approval of the Accounts to the Chair of the Audit Committee, in consultation with the Director of Finance and the External Auditor, once the remaining work was finalised. A list of amendments to the draft Statement of Accounts was provided, including adjustments to the Explanatory Forward, Annual Governance Statement, Balance Sheet, and various notes relating to expenditure, remuneration, leases, and financial instruments.

External Audit Progress Report

The committee received a report from the external auditors, Forvis Mazars LLP, detailing the progress of the 2025/26 audit. The audit was on track to be completed in October 2026. The report outlined the audit approach, including planning, interim work, fieldwork, communication, and completion stages. Outstanding information required from the Council included journals, pension fund details, and PPE valuations. Queries were also ongoing with the valuer regarding the non-application of indexation to un-revalued assets. The auditors were awaiting information regarding committed bank accounts, Manchester Airport Group, leases, income and expenditure, loans, creditors, REFCUS, and related party disclosures. The report also noted that the Value for Money (VFM) arrangements would be reported by 30 November 2026.

Other Matters

The committee noted the minutes of the previous meeting held on 22nd July 2026. Several other reports were presented and noted, including the Head of Audit's Annual Report and Opinion for 2025/26, progress reports on audit opinion reports, and updates on the Payroll Audit Action Plan. The committee also considered its Work Programme for 2026/27. A confidential appendix related to agenda item 12 was also considered.