The Lancashire Combined County Authority (LCCA) Audit and Governance Committee met on Tuesday 29 July 2025. The committee approved its internal audit plan, charter, mandate, and risk management strategy. The committee also noted its membership and terms of reference for 2025/26, acknowledging that these would be reviewed annually. Councillor David Whatley was appointed as the Independent Chair of the committee. The committee received an overview of the LCCA's role and progress, with a commitment to further updates and the development of a comprehensive work programme.

Audit and Governance Committee Constitution, Membership and Terms of Reference

The committee noted its membership and terms of reference for 2025/26, acknowledging that these would be reviewed annually to adapt to the evolving nature of the LCCA. Councillor David Whatley was appointed as the Independent Chair of the committee.

Role of the LCCA Audit and Governance Committee

Matthew Sidgreaves, Interim Chief Operating Officer for the LCCA, provided an overview of the organisation's aims, progress, and priorities, highlighting its role as a vehicle for devolution in Lancashire. Key areas of focus include economic growth, transport, and skills. The committee was informed that KPMG LLP had been appointed as the LCCA's external auditors and it was suggested that a representative from KPMG be invited to a future meeting. The committee discussed the transitional arrangements for grant funding in 2025/26, with a commitment to reviewing future governance arrangements for fund distribution. A work programme for the committee was discussed, with suggestions to include regular updates from the Interim Chief Operating Officer, risk management, treasury management, and fraud, bribery, and corruption. The committee also agreed to consider incorporating private annual meetings with auditors and effectiveness surveys into its work. A draft 12-month work programme is to be presented at the next meeting.

Internal Audit Annual Plan and Strategy 2025/26

The committee approved the Internal Audit Annual Plan and Strategy for 2025/26. This plan is risk-based and aligned with the LCCA's corporate objectives. It was noted that the plan would be flexible and adapted as the LCCA develops. A request was made for more detailed information on the transport transition plan and adult skills elements in the audit universe document for the next meeting.

Internal Audit Charter and Mandate

The committee approved the Internal Audit Charter and Mandate, which establishes the framework for the LCCA's Internal Audit Service. This document aligns with the new Global Internal Audit Standards and clarifies the purpose, authority, and responsibilities of the internal audit function. The committee was assured that the county council's internal audit team has the necessary resources and skills to address fraud, and that support would be provided in developing strategies for whistleblowing and financial crime.

Risk Management Strategy and Corporate Risk and Opportunity Register

The committee approved the LCCA's Risk Management Strategy and its first Corporate Risk and Opportunity Register. The strategy outlines the LCCA's approach to risk management, based on best practice and the frameworks of its constituent councils. The register will be updated and reported to the committee quarterly. It was suggested that the committee could undertake in-depth reviews of specific risks in future meetings. The register identified four key strategic risks: Local Transport Authority Functions, Adult Skills Fund, Operational Capacity and Resources, and Strategic Planning and Financial Sustainability.