The Audit and Accounts Committee are scheduled to meet to discuss the Local Government and Social Care Ombudsman's annual review of complaints, the draft annual governance statement, the draft statement of accounts, and the internal audit charter. Also to be discussed are the internal audit progress report, the external auditors' progress report, and the committee's work programme. The meeting is scheduled to include a private session with the external auditors, Forvis Mazars.

Local Government and Social Care Ombudsman Annual Review of Complaints

The committee will be provided with the Local Government and Social Care Ombudsman's (LGSCO) annual review of local government complaints, along with data about Salford's performance in 2024-25. The report pack notes that across the country, the LGSCO received a record number of complaints, with 20,773 complaints received, and that the LGSCO:

investigated 4,298 complaints and upheld 3,552 of these complaints (83% uphold rate which is an increase from 80% the previous year).

The report pack also notes that nationally, the number of upheld complaints is 6.2 per 100,000 residents, while Salford's performance is much lower than this rate at 3.2 per 100,000 residents. The report pack states that in Salford, the LGSCO conducted 11 investigations, upholding 9 (82%) of them. The report pack includes a table providing details of the 9 upheld cases, the agreed actions, lessons learned and any improvements that have been made. The report pack states that the LGSCO was satisfied that Salford Council had successfully implemented their recommendations in all cases (100%).

Draft Annual Governance Statement

The committee will be asked to review the draft Annual Governance Statement (AGS). The AGS is required to be updated annually and follows the format recommended by CIPFA / SOLACE. The AGS will accompany the Council's Annual Accounts, be audited by the external auditor and published on the Council's website.

The report pack states that the AGS:

demonstrates how the Council complies with the Code of Corporate Governance, delivering effective value for money services in line with statutory requirements and the principles of good governance.

The report pack states that the AGS contains details of the mechanisms in place to ensure that the Council's interests are protected appropriately, and that decision making is transparent and auditable.

The report pack states that the draft AGS outlines the Council's governance framework and a review of its effectiveness in line with the CIPFA Delivering Good Governance Framework document. The report pack states that the review of effectiveness has found the arrangements for the governance framework to be fit for purpose.

The report pack states that the council will be undertaking a detailed governance review (referred to as the 'Governance 360⁰ Improvement Programme) which will take a holistic view of the council's governance arrangements with a view to refreshing and modernising the council's governance framework and operational practices.

The report pack states that following the council undertaking its assessment of its compliance against the CIPFA Financial Management (FM) Code of Practice, the following actions have been identified to further improve compliance with the standard and ensure that robust financial management is embedded.

The report pack states that throughout 2024/25, the council has continued to strengthen its workforce capability and organisational resilience through a programme of improvement led by the HR & OD service.

Draft Statement of Accounts

The committee will be asked to consider the draft statement of accounts for 2024/25. The report pack states that the council has not met the deadline to publish a draft of its statement of accounts by 30 June following the end of the financial year, due to delays in valuing the council's assets. The report pack states that the main change in the accounts for 2024/25 is the introduction of International Financial Reporting Standard (IFRS) 16 which recognises some leases on the Council's balance sheet.

The report pack includes descriptions of the various statements of account, including:

• The Comprehensive Income and Expenditure Statement (CIES)
• The Movement in Reserves Statement
• The Balance Sheet
• The Cash Flow Statement

Internal Audit Charter

The committee will be asked to re-approve the current version of the internal audit charter for 2025/26. The report pack states that the internal audit charter was approved previously by the Audit and Accounts Committee in September 2024. The report pack states that the purpose of Salford City Council's Internal Audit Charter is to define internal audit's purpose, authority, and responsibility. The report pack states that the work of internal audit has been governed by the Global Internal Audit Standards in the UK Public Sector since 1 April 2025.

Internal Audit Quarterly Progress Report

The committee will be asked to consider the contents of the Internal Audit Quarterly Progress Report (July-Sep 2025). The report pack states that the purpose of this report is to inform members of the resources utilised by Internal Audit during the last quarter, the activities undertaken in the reporting period, and the status of work currently being undertaken. The report pack includes a table summarising audits that have been finalised since the last progress report, and the corresponding number of agreed actions and overall level of assurance provided for each of those audits. The report pack states that in response to the new Global Internal Audit Standards (GIAS), and the requirement to follow up on all audit recommendations / agreed actions, resource has been put into developing a database of all outstanding actions arising from audit reports finalised since 1 April 2022.

External Auditors: Progress Report

The committee will receive a progress report from the external auditors, Forvis Mazars, regarding the audit of the Council's statement of accounts for the year ended 31 March 2025. The report pack states that since the last Audit and Accounts Committee meeting the National Audit Office (NAO) issued their detailed guidance on rebuilding assurance, known as LARRIG06, with the endorsement of the Financial Reporting Council. The report pack states that the guidance provides the framework for auditors to rebuild assurance where they have issued disclaimed opinions. The report pack states that the LARRIG makes clear the work required to rebuild assurance following a disclaimer opinion may be significant and will vary between authorities. The report pack states that the guidance places an emphasis on the risk assessment procedures auditors should undertake. The report pack states that as a firm, Forvis Mazars are designing their risk assessments to enable their auditors to apply a consistent approach to determining the appropriate audit response to rebuilding assurance. The report pack states that as at the time of drafting this report the Council has not published its Draft Statement of Accounts for 2024/25 and that until the draft Statement of Accounts are published, Forvis Mazars are unable to complete their risk assessment procedures which then drives the amount of work required for rebuilding assurance.

Work Programme

The committee will be asked to consider the work programme for 2025/26. The report pack includes a schedule of committee key dates and agenda items for the year.