These findings prompted further intervention and commissioners were appointed in June 2021.
Before the general election in May, communities secretary Michael Gove said he intended to remove the commissioner-model and establish a statutory assurance and improvement board in its place.
The statutory intervention ended when the commissioner appointments expired in June 2024.
On Friday, the new local government minister Mr McMahon wrote to the council praising the decision to "take the initiative" and establish the improvement board despite no further announcements being made by the government.
Mr McMahon wrote to council leader Liam Robinson (Lab) commending how "well you have tackled challenges in recent months and have put Liverpool back on track".
The minister added: "You have demonstrated strong and committed leadership and I can see that you have reformed Liverpool into a council that is rapidly on its way to achieving its true potential.
"You have clearly worked hard to eliminate the poor governance, insularity, and leadership failings that previously loomed over the council and I am impressed with how quickly and effectively you have been able to instill and embed changes in the short time that you have been in office.
"The cabinet and the council’s leadership team have shown a clear dedication to provide well-needed stability to the council and improve the lives of the of Liverpool."
This approach to intervention is part of a "commitment" from the deputy prime minister Angela Rayner to "reset the relationship between local and central government" and work in "partnership" to "support focus on recovery and reform".
Mr McMahon added that he is "keen" to work with the city council in a "true partnership that works in the best interests of the council and the of Liverpool".
This assurance board will provide advice, challenge and expertise across the "range of council functions and services".
The council's property services were flagged as a concern for the commissioners in May, so its property improvement plan will become a focus of these board meetings.
Commissioners advised that the council should "strengthen its staffing resource" to improve the quality of reports made regarding property decisions so they are legally compliant with council policy and demonstrate best value.
Chief executive of Liverpool city council Andrew Lewis wrote to the Ministry of Housing, Communities & Local Government (MHCLG) confirming the council's "shared-understanding" that progress still needs to be made.
He wrote: "We welcome this as a very significant step down from the commissioner-led intervention model, and we commit to working with the board and providing all necessary support."
Mr Lewis added that the council has the "right political and officer leadership and capacity to take full responsibility for our own decisions" so commissioners can "end their responsibilities with confidence".
However he welcomed Mr Cunningham's position as the chair of the improvement board, which will provide "valuable continuity with the dedicated and constructive role he has fulfilled as lead commissioner".
Mr Lewis' letter ended with as assurance that the council will "work constructively" with the improvement board even without it being on a statutory basis.
The board is required to report back in October to MHCLG the progress.
The Local Government Association's corporate peer challenge for Liverpool is set to be published at around the same time.
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