The LCR Audit and Governance Committee is scheduled to convene on Thursday, 1 October 2026, with a key focus on reviewing internal audit findings, the progress of the 2025/26 external audit of financial statements, and updates on risk management. The committee will also consider its work programme for the upcoming municipal year.

Internal Audit Update

The committee is set to receive an update on the internal audit work completed during the second quarter of the 2026-27 financial year. This report, prepared by Laura A. Williams, Head of Internal Audit and Risk, will detail the audits undertaken, their findings, and any recommendations made. The report indicates that no major opinion reports were issued during the period, but three moderate opinion reports require attention. These relate to the management of fraud risk within the Skills Bootcamp claims process, strengthening governance and control for IT in-house software design, and improving evidence of value for money in asset management service and maintenance contracts. Additionally, an Artificial Intelligence (AI) Maturity Assessment was conducted, which identified a need to formalise and mature AI governance, data management, assurance, legal, and ethical oversight arrangements. The report also provides an overview of recommendation implementation, with 45 recommendations implemented in the period, and details of outstanding recommendations.

2025/26 Statement of Accounts - External Audit Update

A report from the Executive Director of Resources will provide an update from the external auditors, Forvis Mazars LLP, regarding the audit of the 2025/26 Statement of Accounts for both the Combined Authority and Merseytravel. The audit fieldwork commenced in September 2026, with the intention to complete it by the end of December 2026. The auditors have reported that no material misstatements or significant deficiencies in internal control have been identified to date. The report also confirms that the audit of Value for Money arrangements remains on track, with no additional risks identified since the Audit Strategy Memorandum was presented.

Risk Management Update

The committee will receive an update on the risk management framework and activities undertaken in the second quarter of 2026-27. This report, also from the Executive Director of Resources, will detail the Corporate Risk Register, which currently comprises six overarching corporate risks. These include risks related to accountability, resilience, the environment (achieving net zero carbon by 2035), transport (maximising its role and achieving modal shift targets), economic prosperity, and financial sustainability. The report notes that the Corporate Risk Register was reviewed and updated by risk owners and the Executive Leadership Team, with no changes to the risk scores identified, though new actions have been added for several risks. The update also covers the status of service and project risk registers, highlighting an improvement in their consistency and completion. Furthermore, the report details progress on embedding the Risk Management Policy and Handbook, the development of a risk management training programme, the ongoing work of the Directors Risk Forum, and the establishment of a Risk Practitioners Network.

Committee Work Programme 2026/27

The committee will consider its Work Programme for the 2026-27 municipal year, as presented by the Monitoring Officer. This programme outlines the core business to be considered throughout the year, including regular updates on internal audit, finance, risk management, and governance matters. The work programme also lists additional items that may be considered, such as reports from external audit and inspection agencies, reviews of the Authority's risk management arrangements, accounting policies, treasury management, and revisions to the Constitution. The report also confirms the scheduled meeting dates for the upcoming year.