The Audit Committee of Manchester Council was scheduled to consider a range of governance and financial oversight matters. Key discussions were scheduled to include the review of the Council's Code of Corporate Governance, an update on the Register of Significant Partnerships, and a report on Treasury Management activities for the second quarter of the financial year. The committee was also scheduled to receive progress reports from the external auditors, Forvis Mazars LLP, and updates on internal audit assurance and outstanding audit recommendations.

Register of Significant Partnerships

The committee was scheduled to review the 2025/26 Register of Significant Partnerships¹. This register details various entities and partnerships that are of high significance to the Council, including joint ventures, wholly owned companies, and statutory groups. The report was to outline the process for generating the annual register, highlight any new entries, detail partnerships rated as 'Reasonable', 'Limited', or 'Weak' following self-assessment, and identify entries recommended for removal. One new entry, 'Wythenshawe Civic Regeneration', was scheduled for discussion, having been rated as 'Reasonable' due to initial operational and governance processes being embedded and early-stage issues being addressed. Five entries were proposed for removal, including 'Manchester Life', 'Manchester Concert Hall Limited', 'Manchester Equipment and Adaptations (MEAP)', 'Greater Manchester Mental Health NHS Foundation Trust (GMMH)', and 'Millennium Quarter Trust', due to the fulfilment of their objectives or the novation of their responsibilities to the Council. The report also highlighted that 'AVRO Hollows Tenant Management Organisation' had seen its assurance rating reduce from 'Limited' to 'Weak', and 'SHOUT' remained rated as 'Limited'.

Code of Corporate Governance 2026/27 Review

The committee was scheduled to consider proposed revisions to the Council's Code of Corporate Governance² following a light-touch review. The report aimed to provide assurance that the Code remains fit for purpose, with compliance monitored annually through the Council's Annual Governance Statement (AGS). The suggested updates included minor edits to ensure clarity and currency, such as updated references to the AGS and the removal of a reference to the Standards Committee following a change in delegation. Amendments were also proposed to Principle A, detailing the Seven Principles of Public Life, and Principle B, enhancing stakeholder engagement by rephrasing descriptions of communities of identity to acknowledge intersectionality. Principle E was to be updated with corrections to references and rephrasing to emphasise ongoing learning and development responsibilities. The committee was recommended to approve the revised draft Code, subject to any amendments.

Treasury Management Q2 Report 2026-27

A report was scheduled to detail the Council's Treasury Management activities during the first six months of the 2026-27 financial year³. The Treasury Management Strategy Statement (TMSS) for 2026/27 had anticipated the need for external borrowing to fund the capital programme and replace internally borrowed funds. The report was expected to outline the challenging financial market conditions, characterised by a high interest rate environment, and the volatility in gilt markets. The portfolio position as of 30 September 2026 was to be presented, comparing it to the end of the previous financial year, with gross debt reported as significantly below the Council's capital financing requirement and authorised limit. The report was also to detail borrowing activity, highlighting the strategy of using short-term debt to manage cash flow with the expectation of future rate reductions. The Capital Financing Budget Forecast was to be presented, noting an increase in external borrowing and anticipated higher interest costs, alongside the use of the Capital Financing Reserve. Compliance with Treasury Indicators and Treasury Limits was to be reported, along with details of temporary borrowing and investment activities.

External Auditors' Progress Report

The committee was scheduled to receive an update from the external auditors, Forvis Mazars LLP⁴, on the progress of the 2025/26 financial statements audit. The report was expected to confirm that fieldwork had commenced, focusing on significant audit risks, and that no issues had been identified at that stage. Procedures relating to rebuilding assurance were also to be reported as being in their early stages. The auditors were on track to complete their audit and report back in January 2027, enabling the Council to publish its audited accounts by the statutory deadline. The report was also to address two objections received from local electors concerning Council funding to another organisation and a Council asset leased to a third party, outlining the audit procedures designed to determine whether these objections would be upheld. Furthermore, the report was to detail the auditors' assessment of the Council's Value for Money arrangements, highlighting a risk of significant weakness identified concerning the Dedicated Schools Grant (DSG) deficit. The planned procedures to address this risk were to be outlined. The report was also to summarise the Financial Reporting Council's inspection of Forvis Mazars' audit quality, noting positive file inspection outcomes and the firm's ongoing commitment to audit quality.

Internal Audit Assurance Update Quarter Two 2026/27

An update on the work of the Internal Audit Service for the second quarter of 2026/27 was scheduled for discussion⁵. The report was to detail progress on the agreed audit plan, with 32% of the plan completed to draft or final report stage by the end of September 2026. Key assurances, risks, and issues arising from audit work were to be presented, including opinions issued where audit work was completed. Emerging themes from audit work were to be highlighted, such as challenges in Adults Services' Care Package to Payment Process, leading to delays and budget pressures, with an action plan developed for improvement. In Children's Services, risks and issues were noted across various payment methods to individuals, including approval and documentation concerns. Housing Services were reported to be experiencing challenges with capacity and capability impacting key risks in areas such as repairs, building safety, and finance. Corporate Services audits identified implemented recommendations in areas like Revenue Budget Management and SAP Finance Integrations, with some partially implemented recommendations in Adults Debt Management and Council Tax. Growth and Development audits showed progress in implementing recommendations related to Social Housing Decarbonisation Fund delivery management and Disabled Facilities Grant certification. Neighbourhood Services reported progress in implementing recommendations for Housing Anti-social Behaviour and Libraries Anti-social Behaviour. Counter Fraud referrals were noted to be increasing, particularly in housing tenancy fraud, with policies under review.

Outstanding Audit Recommendations Quarter Two 2026/27

The committee was scheduled to receive a summary of the implementation position of outstanding high-priority Internal Audit recommendations as of the end of September 2026⁶. The report was to detail progress in addressing critical and significant recommendations, with no recommendations over 12 months old. Nine recommendations were reported as overdue for between six and twelve months, primarily in Housing Consumer Standards Part 2, Building Safety Improvements (Housing), and Libraries Anti-social Behaviour, with these noted as partially implemented. Eleven recommendations were reported as overdue for one to six months, relating to the Management of the Investment Estate, Homeless Temporary Accommodation, Adults Payments, and Additional Payments, all of which were noted as partially implemented. The report was to provide details of implemented recommendations in Appendix 1, overdue recommendations between 6-12 months in Appendix 2, and overdue recommendations between 1-6 months in Appendix 3.