The Hyndburn Council Audit Committee is scheduled to meet on 22 September 2025 to discuss the progress of the audit plan, the Internal Audit Charter and Mandate, and updates on both the council's statement of accounts and external audits. The committee will also be asked to approve the scheduling of a future meeting to approve the audited accounts. It is anticipated that disclaimed audit opinions will continue for the next few years.

Statement of Accounts 2024/25

The committee is scheduled to receive an update on the council's unaudited Statement of Accounts for the financial year 2024/25. The Final Report - Audit Committee - Sep-25 - Review of Statement of Accounts 2024.25 report includes the following key sections:

• Narrative Report, providing an overview of the borough, the council's achievements, the Corporate Strategy, and commentary on financial performance.
• Annual Governance Statement, outlining the council's governance arrangements and the results of its annual review.
• Statement of Responsibilities, setting out the responsibilities of the authority and the Chief Financial Officer.
• Core Financial Statements, including the Comprehensive Income and Expenditure Statement, Movement in Reserves Statement, Balance Sheet, and Cash Flow Statement.
• Notes to the Financial Statements, providing detailed supporting information, including accounting policies.
• Collection Fund Statement and Notes, detailing the council's role as billing authority for Council Tax and Business Rates, including performance and year-end balances, and information on the Lancashire Business Rates Pool.

The report notes that the council published its draft Statement of Accounts for 2024/25 on 30 June 2025, meeting the statutory deadline, and that the 30-day public inspection period concluded on 6 August 2025 with no public representations received.

The committee will also be informed that external audit is a key component of public sector financial accountability, but that the council's appointed auditors, Forvis Mazars,¹ are not anticipated to commence the audit until later in the financial year. The statutory backstop date for completion is 27 February 2026, and the committee will be asked to approve the scheduling of a meeting close to this date to approve the final audited accounts.

Due to sector-wide challenges and the implementation of backstop regulations, it is anticipated that the Council will continue to receive a disclaimed audit opinion until a satisfactory level of assurance is reached across the sector.

Update on External Audits

The Audit Committee is scheduled to receive an Update on External Audits. The report notes that the council's 2023/24 accounts were approved and published in June 2024, ahead of the statutory deadline, but that Forvis Mazars issued a disclaimer of opinion on 25 February 2025, citing insufficient time to complete audit procedures. The council has now received the audit certificate for 2023/24.

The report also notes that the Statement of Accounts for 2024/25 was published on 30 June 2025, in line with the statutory backstop date, and that the auditors are currently progressing the Value for Money (VfM) element of the 2024/25 audit.

The committee will be asked to note that disclaimed audit opinions are expected for the next few years due to sector-wide challenges in rebuilding assurance, and that £44,000 of government grant funding has been received in the current financial year to support audit work, with a further £166,000 expected in early 2026.

Audit Plan Progress Update

The Audit Committee is scheduled to be informed of the Audit Reports issued during the period June 2025 – August 2025 and the key issues arising.

The Progress Reporting June25-August25 report notes that the audit team aims to complete 98% of the audit plan by the end of the current financial year. As of the end of August 2025, 35.57% of the plan had been completed, with a projected out-turn position for 2025/26 of 85.37% completion.

The report summarises the main issues arising from audits carried out between June 2025 and August 2025:

• Payroll: The audit assurance opinion issued was limited assurance. The audit engagement found weaknesses in the design and/or inconsistent application of controls that put the achievement of the service objectives at risk.
• External Consultancy Fees/Costs: The audit assurance opinion issued was comprehensive assurance. No issues arose.
• Waste Collection and Recycling: The audit assurance opinion issued was comprehensive assurance. No issues arose.
• General Data Protection Regulation (GDPR) and Document Retention Compliance: The audit assurance opinion issued was substantial assurance. The audit engagement found that the last corporate training for GDPR took place in March 2022, and management agreed to schedule refresher training for staff to take place in October and November 2025.
• ICT Help Desk: The audit assurance opinion issued was comprehensive assurance. No issues arose.

Internal Audit Charter and Mandate 2025

The Audit Committee is scheduled to be informed and updated on the revised Internal Audit Charter and Mandate 2025, which has been updated to reflect both good working practices and also to ensure it remains aligned with the new Global Internal Audit Standards (GIAS).

The report notes that the GIAS replaced the former Public Sector Internal Audit Standards (PSIAS) with effect from 1 April 2025, and that Internal Audit must work within and conform to the new GIAS. The GIAS have 5 domains which then break down into 15 principles and 52 core standards, and state that Internal Audit must have an Internal Audit Charter and Mandate.

The Internal Audit Charter and Mandate establishes the framework within which Hyndburn Borough Council's Internal Audit Service operates to best serve the council and to meet its professional obligations under the GIAS. It also details the legislative basis for Internal Audit and its authority within the council.