The Tameside Council Audit Committee met to discuss the progress of external and internal audits, information governance, risk management, and treasury management. The committee approved the Information Governance Framework and the Artificial Intelligence (AI) Policy. They also noted the Internal Audit Annual Report, the Peer Review, and the Interim Head of Assurance's opinion on the council's governance, risk, and control environment for 2024/25.

Information Governance and Artificial Intelligence Policy

The committee approved the updated Information Governance Framework and the council's new Artificial Intelligence (AI) Policy.

Becky Swan, Head of Information Governance & Data Protection Officer, presented a report covering the annual Information Governance Report, the updated Information Governance Framework, information governance policies, an update on the Information Commissioner's Office (ICO) Audit and Action Plan, and the council's AI Policy.

Members raised concerns about cyber attacks and were assured that the council has consistent training, alert systems, and data security and compliance processes in place to mitigate risks. The internal timescale for reporting data breaches has been shortened to within four hours of knowledge of the incident, improving compliance with the statutory 72-hour reporting timescale to the ICO¹. The AI Policy outlines the principles and conditions for using AI within the council, applying to all employees, apprentices, elected members, volunteers, contractors, and third parties. Access to AI tools will be restricted, with a list of approved tools and their conditions of use available on the council's intranet.

Members were informed that AI had been positively received within social care directorates, where transcription tools have increased staff capacity and efficiency. Councillor Michael Smith, Chair of the Audit Committee, emphasised the importance of correct AI implementation from the outset to maximise its benefits.

External Audit Progress

The committee noted the progress report on the external audit of Tameside Metropolitan Borough Council (TMBC).

Zoe Evans, Acting Strategic Director of Finance/Section 151 Officer, presented the TMBC External Audit Progress Report alongside a representative from the external auditors. Members were informed that the audit for the year ending 31 March 2025 was impacted by a disclaimed audit opinion in the previous year's accounts, requiring a rebuild of assurance. New guidance from the National Audit Office² aims to rebuild assurance of backstop targets for previous years. The external audit is required to issue a draft Auditor's Annual Report by 30 November each year, concluding whether there are any significant weaknesses in the council's arrangements. Any weaknesses identified, such as the 'Inadequate' rating from the OFSTED³ inspection of Children's Services, will be reported.

Greater Manchester Pension Fund (GMPF) Audit

The committee noted the 2024/25 Audit Strategy Memorandum for the GMPF⁴ external audit. Zoe Evans, Acting Strategic Director of Finance/Section 151 Officer, presented the GMPF Audit Completion Report alongside a representative from the External Auditors, outlining the work processes and timelines for completing the audit of the 2024/25 Pension Fund accounts. The audit team is currently undertaking fieldwork, with the completion date yet to be confirmed.

The overall materiality for 2024/25 is anticipated to be around £312 million, with the Fund Account overall materiality at £105 million. A change in accounting policies will see the inclusion of leasing arrangements on the Pension Fund's balance sheet, but this is not expected to significantly impact the fund's financial statements.

Internal Audit

The committee reviewed the Internal Audit Annual Report & Opinion and the Internal Audit Progress Report.

David Hill, Interim Head of Assurance, presented the Internal Audit Annual Report, detailing the work undertaken by Internal Audit and its contribution to the Annual Opinion on the council's governance, risk, and control environment. The overall audit opinion for the year was limited, with several audit recommendations remaining outstanding for over six months. A peer review was attached to the report, containing recommendations that the internal audit team is actively addressing.

The Internal Audit Progress Report summarised the work completed between 1 February 2025 and 30 April 2025. Internal Audit resources continue to be a challenge, with discussions ongoing regarding the permanent placement of the Interim Head of Assurance and the Interim Internal Audit Manager. Members raised concerns about resource pressures and the additional requirement to undertake GMPF-related audit work.

Strategic Risk Management

The committee approved the Strategic Risk Management Update.

Martin Nixon, Risk and Insurance Manager, presented the Strategic Risk Management Update, outlining the updated Strategic Risk Register and the actions of the Risk Management Team. Good progress has been made on actions arising from an internal audit of risk management.

Members discussed the difference between risk appetite and target scores, and how the risk appetite is assessed and reviewed. The Senior Leadership Team (SLT) agreed on the model in December of the previous year, and individual departments review risk reports quarterly.

Treasury Management

The committee noted the Treasury Management Outturn for 2024/25.

Jagroop Basra, Interim Senior Finance Manager, presented a report reviewing the council's Treasury Management activities for 2024/25. Investment levels have fallen by £36 million year-on-year, primarily due to a decline in money market fund investments. This has led to a corresponding reduction in investment income, and work is underway to review the structure of investments and assess their appropriateness in light of current interest rates.

Investments were made with Lancashire County and Cornwall Councils, both of which chose to discontinue their credit ratings in 2024/25. The investment with Cornwall Council matured and was repaid as expected. The council's treasury advisors confirmed that the discontinuation of the credit rating with S&P did not affect the investment's worthiness with Lancashire County Council, and that Lancashire continues to demonstrate strong creditworthiness.

Members queried the reduction in investment income and requested that future reports include commentary on this reduction. They also queried how dividends received from Manchester Airport compared to pre-COVID levels. It was noted that prior to the pandemic, the nine Greater Manchester councils had received approximately £5 million annually in dividends, and the council's investment strategy anticipates an increase in dividends going forward.

Annual Governance Statement

The committee approved the Draft Annual Governance Statement 2024/25 and the Draft Local Code of Corporate Governance 2025/26.

Zoe Evans, Acting Strategic Director of Finance/Section 151 Officer, presented the Draft Annual Governance Statement 2024/25 and the Draft Local Code of Corporate Governance 2025/26. The statement included the 2024/25 AGS Improvement Plan, highlighting improvements already delivered and those ongoing.

Members considered the update on risks carried forward from the previous statement and suggested that the absence of clear timelines and milestones made it difficult to monitor progress effectively. They queried what project management arrangements and governance structures were in place to support delivery.