The Greater Manchester Combined Authority Audit Committee met on Wednesday 22 July 2026. The meeting's agenda included a review of the Information Commissioner's practice recommendation regarding information governance statutory performance, an update on the Greater Manchester Fire and Rescue Service's HMICFRS inspection outcome report, and a discussion on risk management. Attendees were also scheduled to consider the Head of Internal Audit's annual opinion, the review of Internal Audit's effectiveness, and the Internal Audit progress and action tracking report. Further items included the draft Statement of Accounts for 2025-26, Treasury Management Practices, and an assessment of going concern.

Practice Recommendation from the Information Commissioner

A key item for discussion was a practice recommendation received from the Information Commissioner's Office (ICO) concerning the publication of Freedom of Information performance statistics. The report detailed the actions undertaken by the Greater Manchester Combined Authority (GMCA) to comply with this recommendation. It was noted that the ICO had issued this recommendation on 14th April 2026, outlining that the Authority did not publish compliance statistics as required for an organisation of its size. The report indicated that compliance was achieved by 14th May 2026 and accepted by the ICO on 19th May 2026. The committee was asked to consider the ICO's recommendation, the work undertaken to comply, and a proposed pilot that aims to support open government and transparency. Additionally, the committee was asked to consider adding Information Governance assurances and annual reporting to its existing terms of reference.

GMFRS Update – HMICFRS Inspection Outcome Report

The committee was scheduled to receive an update on the outcome of the HMICFRS inspection report for Greater Manchester Fire and Rescue Service (GMFRS). The report highlighted that GMFRS is recognised as one of the highest performing fire and rescue services nationally, with HMICFRS rating it 'Good' for understanding risk, 'Outstanding' for prevention, 'Adequate' for protection, and 'Good' for response. Promising practices were identified in areas such as the Prevention in Prisons Programme, the 'culture-first' model, staff networks, and workforce diversity attraction. However, areas for improvement were noted within the protection function, specifically concerning the follow-up of formal notices, management and oversight of risk-based inspections, and the effectiveness of performance management processes.

Risk Management Update

The report provided an update on corporate risk management activities undertaken and reviewed by the GMCA Senior Leadership Team. It highlighted a complex and pressured risk environment for GMCA, with key risks linked to financial resilience, external shocks, cyber security, artificial intelligence, contract and supplier resilience, and mayoral transition. New risks related to Artificial Intelligence and the Waste Emissions Trading Scheme were added, and risk scores had changed since the previous update. Mitigation activities were focused on strengthening oversight, ownership, and delivery of risk actions, including improved financial planning, development of an Emissions Trading Scheme buying strategy, cyber resilience and AI assurance, contract management improvements, mayoral transition arrangements, and quarterly reviews of GM Strategy delivery. The move to a single SharePoint risk register with Power BI reporting, alongside a review of the Risk Framework, was expected to improve consistency, visibility, and tracking of risk activity.

Internal Audit Reports

The committee was presented with several internal audit reports. The Head of Internal Audit Opinion 2025/26 provided a Reasonable Assurance opinion on the overall adequacy and effectiveness of GMCA's framework of governance, risk management, and internal control. This opinion remained unchanged from the previous year, indicating a stable control environment despite significant organisational change. The report detailed work undertaken, progress in implementing audit actions, and considered other assurance sources.

The Internal Audit Progress Report and Action Tracker provided an update on the delivery of the Internal Audit Plan for 2025/27 and the implementation of agreed audit actions. It noted that audit action implementation fell below the 85% target, reaching 75% by March 2026, with capacity issues affecting timely delivery. The report also detailed changes to the audit plan, including the cancellation of the GMFRS sickness and absence audit due to ongoing developing arrangements.

The Review of Effectiveness of Internal Audit report summarised the self-assessment against GIAS requirements, identifying areas for development. It confirmed general conformance with professional standards but highlighted the need for further work to evidence full compliance. The report also detailed the structure and resources of the Internal Audit Service, noting ongoing resourcing pressures.

Draft Statement of Accounts 2025/26 and Annual Governance Statement

The committee was presented with the Authority's draft Statement of Accounts for the financial year ended 31 March 2026. The report noted that the single-entity Statement of Accounts were approved and published by the statutory deadline, but the consolidated Group Accounts were published on 10 July 2026 due to delays in receiving financial information from group entities. The accounts demonstrated a balanced revenue outturn and continued investment across various services. However, the committee was advised that the external auditors expected to issue a disclaimer of opinion on the 2025/26 Statement of Accounts due to the impact of the wider local government audit backlog, not due to specific concerns about the Authority's financial management.

Treasury Management Practices (TMP)

The committee was asked to review and approve the updated Treasury Management Practices for 2026/27. The report highlighted that the Authority had complied with its legislative and regulatory requirements during 2025/26, with borrowing remaining within authorised limits. The report detailed the Authority's debt and investment position, noting that no long-term borrowing was undertaken during the year due to elevated costs, with a focus on internal and temporary borrowing. Investment returns were reported as robust, and the Authority experienced no liquidity issues. The report also provided an analysis of the economic outlook, including UK, US, and Eurozone economies, and detailed the Authority's borrowing and investment strategies.

Going Concern Assessment Statement

This report presented the Authority's assessment of its ability to continue as a going concern for the purposes of preparing the 2025/26 Statement of Accounts. The assessment considered the Authority's statutory status, financial performance, reserves, liquidity, borrowing, medium-term financial planning, and key risks. The Group Chief Finance Officer concluded that the Authority remains a going concern, will be able to meet its obligations, and has appropriate arrangements in place to manage financial risks. This conclusion was supported by the Authority's statutory basis, continuing government support, balanced budgets, adequate reserves, treasury management arrangements, and robust governance and risk management framework.

The meeting also included the annual appointment of the Chair and noted the membership of the Audit Committee for the upcoming municipal year. Provisional dates for future meetings were also considered.