The Greater Lincolnshire Combined County Authority Audit Committee met on 20 May 2026 to review the authority's financial outturn for the 2025-26 financial year, discuss proposed changes to the constitution, and receive an update on internal audit activities. Key decisions included the noting of the provisional outturn and the approval of accounting policies for the draft statement of accounts, alongside the delegation of signing authority for these accounts. The committee also endorsed proposed amendments to the constitution for further approval by the Authority.

Audit Report and Opinion

Claire Goodenough, Head of Internal Audit for Lincolnshire County Council, presented the annual audit report and opinion for the 2025-26 financial year. The report concluded that the authority's governance, risk management, and internal control frameworks were adequate. While control designs were deemed sufficient, some areas required improvement to ensure business objectives were met. The report highlighted that the authority's maturity and the limited financial transactions during its initial setup meant that testing of control application was not always possible, but this would be addressed in the 2026-27 audit plan.

Councillor Mrs Marianne Jane Overton MBE raised concerns about the delay in management responses for the Cost Allocation and Financial Recharges audit, questioning the reasons and potential implications. Claire Goodenough clarified that the audit work was complete and the delay in management responses would not impact the delivery of the audit service or increase identified risks. She explained that internal audit identifies control weaknesses and it is management's responsibility to determine the necessary improvements.

The committee discussed the ambition to move from an adequate to a substantial assurance level. Claire Goodenough advised that this would require no red findings in future audits, consistent application of controls, improved transparency, and pockets of best practice.

The committee resolved to consider and comment on the contents of the internal audit report and opinion.

Provisional Outturn and Key Statement of Accounts Information

Debbie Simpson, Interim Section 73 Officer, presented the provisional outturn for the financial year 2025-26 and key information for the draft Statement of Accounts. This was the authority's first financial year, running from February 2025 to March 2026, and expenditure primarily related to establishment and setup costs, with much of the funding being passported ¹ to local authorities.

The provisional outturn showed a revenue surplus of £13.1 million, which was to be allocated to reserves. This surplus was attributed to higher-than-forecast grant income, including additional capacity funding. The capital outturn showed a variance of -£13,061,000, largely due to the Investment Fund not being fully expended in the first year, with funds reallocated for future expenditure.

The committee was asked to note the key information for the draft Statement of Accounts, approve and adopt the accounting policies, and approve the delegation of the draft account sign-off to the Section 73 Officer in consultation with the Chair of the Audit Committee and the Chief Executive Officer.

Forvis Mazars, the external auditors, provided a progress report. They confirmed that their audit planning was largely complete, pending the receipt of draft financial statements. They noted that much of their work on understanding systems and controls would be done in conjunction with North East Lincolnshire and North Lincolnshire audit teams due to shared IT infrastructure and finance processing. The formal audit plan would be presented in September, with the final audit work expected in late summer/autumn, aiming for a completion report before Christmas.

Councillor James Bean questioned the significant carry-forward of funds and asked about plans to ensure this money delivered tangible services. Debbie Simpson explained that this was a traditional pattern for this type of funding, especially capital funding, and that an outline programme of investments had been shared. She assured the committee that all funds would be spent and that a value for money audit opinion would be provided.

The committee resolved to note the key information for the draft Statement of Accounts, approve the accounting policies, and approve the delegation of the draft account sign-off.

Proposed Changes to the Constitution

Catherine Whitehead, Interim Monitoring Officer, presented proposed amendments to the constitution, primarily relating to the scheme of delegation and the removal of references to the Transition Period which ended on 31 March 2026. These changes were necessary due to the authority taking over transport functions and structural changes to offices.

A revised scheme of delegation was proposed, which delegates powers to the management team and then reserves specific items for members and officers. This reverse delegation approach was intended to ensure no areas were missed.

Councillor James Bean raised concerns about the extent of officer delegation, particularly regarding key decisions and whether the Chief Executive could take on responsibilities beyond normal allowances. Catherine Whitehead clarified that key decisions were not delegated under the scheme unless members had already approved them, and that paragraph 17 of the proposed changes was a restriction, not an enhancement, ensuring that officers could not make key decisions without prior member approval. She also explained that the Chief Executive could carry out the powers of other officers in their absence to ensure continuity and avoid complex deputy schemes.

The committee resolved to endorse the proposed amendments to the constitution for approval by the Authority.

Audit Committee Work Programme

The committee was invited to comment on its work programme. It was noted that a six-monthly report on Tender Waivers/Exceptions should be added for committee oversight. The committee also agreed to add the item of tender waivers to the work programme.