The Audit Committee of Manchester Council is scheduled to convene on Tuesday, 16 June 2026, to review several key financial and governance reports. The meeting's agenda includes a detailed examination of the Council's treasury management activities for the past financial year, an update from the external auditors, and a review of the draft Annual Governance Statement for 2025/26. Additionally, the committee will consider the proposed Internal Audit Plan for the upcoming year and approve the accounting policies that will underpin the preparation of the Council's annual accounts.

Treasury Management Outturn Report 2025-26

The committee is scheduled to consider the Treasury Management Outturn Report for the financial year 2025-26. This report, presented by the City Treasurer, is expected to detail the Council's treasury management activities and provide an update on activity to date in 2026-27. The report aims to inform the committee about the Council's financial operations related to borrowing, investments, and risk management. The Treasury Management Strategy Statement 2024-25, including borrowing limits and the annual investment strategy, and the Treasury Management Strategy Statement 2026-27, are referenced as background documents.

External Auditor Update

The committee will receive an update from the Council's external auditors, Forvis Mazars LLP. This update is expected to cover the progress of the 2025/26 audit, including the approach to re-building assurance following previous disclaimed audit opinions. The auditors will present their Audit Strategy Memorandum, outlining the audit approach, significant risks, and key judgements for the current financial year. The report also details lessons learned from the 2024/25 audit and the anticipated pathway for regaining an unmodified audit opinion over the coming years.

Draft Annual Governance Statement 2025/26

A key item on the agenda is the draft Annual Governance Statement (AGS) for 2025/26. This statement, prepared by the City Treasurer and Interim Deputy Chief Executive, follows an annual review of the Council's governance arrangements and internal control systems. The committee is invited to comment on the draft statement and confirm its sign-off. The AGS outlines the Council's adherence to its Code of Corporate Governance, which is aligned with the CIPFA/SOLACE framework for delivering good governance in local government. The report highlights the Council's commitment to achieving the outcomes set out in the Our Manchester Strategy 2025-2035 and details actions taken to address governance challenges identified in the previous year, as well as outlining the plan for 2026/27.

Internal Audit Plan 2026/27

The committee will review and approve the proposed Internal Audit Plan for 2026/27. This risk-based plan, developed in accordance with Global Internal Audit Standards (GIAS) and CIPFA's Code of Practice, outlines the areas of proposed audit coverage for the year. The plan is designed to be flexible and responsive to emerging risks and assurance needs. It details the allocation of resources for various types of audit and assurance work, including opinion reviews, assurance reviews, advice and guidance, and counter-fraud activities. The plan is informed by the Council's priorities, risk registers, and discussions with key stakeholders.

Accounting Policies 2025/26

The committee is asked to approve the accounting policies that will be used in preparing the Council's 2025/26 annual accounts. This report, presented by the City Treasurer and Deputy City Treasurer, outlines necessary changes to the Council's accounting policies in line with the CIPFA Code of Practice. A significant change for 2025/26 relates to the revaluation of the Council's assets, requiring a five-year rolling programme for Property, Plant and Equipment (PPE) valuations, supplemented by indexation in intervening years. The report details the application of these policies to various asset categories and the implications for depreciation and reserves.

Other Agenda Items

The supplementary agenda also includes the minutes of the previous meeting, a report on the Annual Internal Audit Assurance Opinion and Report 2025/26, and a report on Accounting Policies 2025/26. The committee will also consider the Work Programme and Decisions Monitor.