The Knowsley Council Governance and Audit Committee met on 6 October 2025 to discuss a range of topics, including an update from Grant Thornton, the council's external auditors, and several annual reports. The committee was also scheduled to discuss the Risk Management Handbook, the CIPFA Financial Management Code of Practice, and the inspection of adult social care services in Knowsley by the Care Quality Commission.

Grant Thornton Update

The committee was scheduled to receive a verbal update from Grant Thornton, the council's external auditors. Supplementary information provided by Grant Thornton indicated that their audit commenced on receipt of the financial statements, and work was in progress across all identified areas of significant risk, including:

• management override of controls
• valuation of Land & buildings
• valuation of the defined benefit net pension liability
• implementation of IFRS 16 Leases¹

Grant Thornton's report also noted that they had challenged the council's valuations for the Shakespeare North Theatre and Strategic Land, but were satisfied that the council's valuations were consistent with the requirements of the CIPFA Code and reflected the circumstances which existed at 1 April 2023, 2024 and 2025.

In addition to the financial statements audit, Grant Thornton were undertaking work to assess whether the authority has made proper arrangements for securing economy, efficiency and effectiveness in its use of resources, as required by the 2020 Audit Code of Practice. Their work was considering the council's arrangements relating to the Dedicated Schools Grant, in addition to risks noted within their audit plan relating to:

1. Financial sustainability
2. Governance
3. Improving economy, efficiency and effectiveness

The update also noted that Grant Thornton received an objection to the council's 2024/25 accounts from a Knowsley elector, in connection with experimental parking restrictions in the Prescot area.

The supplementary information included a series of sector updates in respect of emerging issues which the Committee may wish to consider, including:

• Lessons from 2023/24 auditors' annual reports
• Financial Instruments in Local Government Accounts
• The Local Authority Backstop
• Reorganisation update
• Other structural changes
• Local government financial sustainability
• The Spending Review
• Fair Funding Review 2.0
• Public procurement
• Keeping fit for the future
• Keeping the leisure estate fit for the future
• Asylum seekers update

Inspection of Adult Social Care Services

The committee was scheduled to consider a report on the inspection of adult social care services in Knowsley by the Care Quality Commission. The CQC is the independent regulator of health and social care in England. They monitor, inspect and regulate services to make sure they meet fundamental standards of quality and safety.

Governance and Audit Committee - Annual Report 2024-25

The committee was scheduled to consider the annual report of the Assistant Executive Director (Legal and Governance). The annual report is likely to summarise the work of the committee over the past year and highlight any key issues or areas of concern.

Risk Management Handbook

The committee was scheduled to consider the Risk Management Handbook, as detailed in the report of the Executive Director (Resources). Risk management is the process of identifying, assessing, and controlling risks. A risk management handbook sets out the council's approach to risk management and provides guidance for officers on how to manage risks.

CIPFA Financial Management Code of Practice

The committee was scheduled to consider the report of the Head of Assurance and Delivery on the CIPFA Financial Management Code of Practice. The Chartered Institute of Public Finance and Accountancy (CIPFA) Financial Management Code provides a framework for good financial management in local authorities. It sets out the principles of good financial management and provides guidance for officers on how to implement them.

Have Your Say Annual Report 2024-25

The committee was scheduled to consider the annual report of the Head of Customer Services on the 'Have Your Say' initiative. This initiative is likely to be the council's mechanism for engaging with residents and gathering feedback on council services. The annual report would likely summarise the feedback received and how it has been used to improve services.

Treasury Management Performance 2024/25

The committee was scheduled to consider the report of the Head of Finance on treasury management performance in 2024/25. Treasury management is the process of managing the council's cash flow, investments, and borrowing. The report would likely provide an overview of the council's treasury management activities and performance over the past year.

Internal Audit Improvement Programme

The committee was scheduled to consider the report of the Chief Internal Auditor on the Internal Audit Improvement Programme. Internal audit is an independent appraisal function that provides assurance to the council on its internal controls and risk management processes. An improvement programme would likely set out how the internal audit function is working to improve its effectiveness.

Investigation Panel Annual Report 2024-25

The committee was scheduled to consider the annual report of the Executive Director (Resources) on the Investigation Panel. This item was to be discussed in Part II of the meeting, meaning that the public may be excluded from the meeting during this discussion because it involves the likely disclosure of exempt information as defined in paragraphs 1, 2 and 3 of Part 1 of Schedule 12A to the Local Government Act 1972².