The Audit and Risk Management Committee (ARMC) convened to discuss the unaudited statement of accounts, review external audit recommendations, examine contract governance, and set the work programme for the upcoming year. The committee approved the draft Annual Governance Statement for 2024/25 and requested a completed action plan regarding the Birkenhead Town Centre Movement Scheme for consideration at its November meeting.

Here's a breakdown of the key discussion points:

• 2024/25 Unaudited Statement of Accounts
• Financial Management Code Assessment
• 2023/24 External Audit Recommendations Update
• Contract Governance Review - Birkenhead Town Centre Movement Scheme
• Audit and Risk Management Committee Work Programme

2024/25 Unaudited Statement of Accounts and Financial Management Code

The committee reviewed and noted the unaudited Statement of Accounts for 2024/25, which presents the council's financial position as of 31 March 2025, and the updated Financial Management Code assessment. The statement, which was published on the council's website by the statutory deadline of 30 June 2025, summarises income and expenditure for the year.

The report also provided commentary on the main statements within the accounts, the public inspection period, arrangements for the external audit by Grant Thornton, and the assessment of the council's position against the Financial Management Code.

The Chartered Institute of Public Finance and Accountancy (CIPFA)'s Financial Management Code offers guidance, standards, and principles for good and sustainable financial management in local authorities. Adherence to the code supports the council's strategic and financial direction, good practice in financial management, and demonstration of financial sustainability. The council is continuously assessing and monitoring its compliance with the code.

2023/24 External Audit Recommendations Update

The committee reviewed the progress made on recommendations from the external auditor, Grant Thornton, following their review of the council's value for money arrangements. The recommendations included a statutory recommendation and key and improvement recommendations.

The report provided an update on the progress made and/or the latest position against each recommendation. Grant Thornton will also review progress against their 2023/24 recommendations as part of their 2024/25 value for money review, and this will be reported in their 2024/25 Annual Audit Report.

Contract Governance Review – Birkenhead Town Centre Movement Scheme

The committee reviewed a report detailing the findings of an investigation into contract governance issues related to the Birkenhead Town Centre movement scheme. The review, requested by the Director of Finance, aimed to understand the reasons behind the project's forecast overspend and delays.

The investigation found that incomplete design works at the time the tender was issued and the contract signed, together with inadequate site investigations, were among the most significant contributors to cost variations on the project. The report also highlighted a lack of transparency in the way design risks were communicated to committees and boards.

The committee agreed to receive the completed action plan for consideration at its 4 November 2025 meeting.

Audit and Risk Management Committee Work Programme

The committee considered its work programme, which includes reports of a statutory and legislative nature and reports required to be reported to public sector audit committees for compliance with the Public Sector Internal Audit Standards.

The committee requested that, in light of concerns raised in respect of regeneration programme governance, the Chair and Spokespersons gave consideration to requesting an assurance report from the relevant Director.

Members also requested a briefing note in respect of ascertaining assurance on the Council's use of Section 106 monies¹.