Agenda and draft minutes

There were no apologies for absence.

Members of the Audit Committee are asked to consider whether they have an interest in any of the matters on the agenda and, if so, to formally declare that interest.

There were no declarations of interest made at the meeting.

The Minutes of the last meeting of the Audit Committee held on

It was agreed:

That the Minutes of the Last Meeting held on 8 December 2025 be approved as a correct record and signed by the Chair.

• Councillor Moss referred to Minute AU.111 – Risk Register and the question raised by Councillor Bernstein in relation to Member safety being included on the risk register and asked if this had been actioned.

The S.151 Officer explained that the contents of the Corporate Risk Register was currently being reviewed and updated as part of the normal process and if required would be updated to reflect the concerns raised.

• Councillor Gartside referred to the question that he had raised in relation to a shortage of social workers and the asked where the recruitment process was up to.

The S.151 Officer reported that HR were in the process of recruiting to the positions.

• Councillor Moss referred to the question that Councillor Rubinstein had asked regarding pot holes and highways and where these were in the risk register.

The S.151 Officer confirmed that this sat within the relevant Departmental Risk Register which fed into the Corporate Risk Register.

Report from S.151 Officer attached

The Section 151 Officer presented a report setting out the Progress Update from the Council to the Statutory Recommendation received from the External Auditor under schedule 7 of the Local Audit and Accountability Act 2014.

The Leader, Councillor O’Brien and the Cabinet Member, Finance and Transformation explained that the report provides the fourth update on activity and delivery against this action plan with the previous updates being brought in April, July and October 2025. The report highlights the improvement work that has been carried out by the Assurance Boards. In addition to the work carried out by the Boards there have been Council wide briefings, Senior Management sessions and Strategic Leadership Team engagement with the improvement work and compliance sprints.

There continues to be progress made within expected target dates across some of the plan. The plan in Appendix 1 was split into the following areas:

1. Financial Resilience (including financial strategy)
2.  Finance Capacity and Transformation (actions in relation to the finance restructure)
3. Governance and Compliance including Estate Management and Leadership and Governance Arrangements:

A recent summary of some Improvement Work Plan activity (in addition to above) by each Board was set out within the report. It was reported that as the first year of the work of the Boards comes to end the majority of recovery actions are complete and the activity set out in the report in the following has become business as usual activity

• Commercial
• Finance
• Governance and Assurance
• Performance, Delivery and Transformation
• Property and Estates
• Regeneration

The progress made in the Improvement Action Plan was set out at appendix 1 of the report and it was explained that there continues to be progress made within the expected target date.

Priorities for the year ahead and governance going forward were set out. A draft plan on a page has been developed alongside the draft Corporate Plan on page (which is currently subject to final approval and sign off).  It is proposed to align the reporting process of the Improvement Plan alongside the current established process of the Corporate Plan, where in-quarter issues would be monitored through the Performance, Delivery and Transformation Board and Governance and Assurance Board where required additionally. A full quarterly update on delivery and performance of both the Improvement Plan and Corporate Plan would be published at Cabinet using the current governance and reporting methods for the Corporate Plan. In development of the Improvement Plan for 2026/27, the draft delivery priorities have been proposed across 5 boards:

Finance Board: 

Property and Estates Board: 

Performance, Delivery and Transformation Board: 

Governance and Assurance Board: 

Commercial Board: 

It is proposed that Regeneration Board will be monitored through the usual Corporate Planning process as through the year this has been seen as a duplication of assurance. The activities for that Board will be the key regeneration projects set out in the Corporate Plan

Those present were given the opportunity to ask questions and make comments and the following points were raised:

• Councillor Bernstein referred to the time being given  ...  view the full minutes text for item AU.121

Report from the Director of Finance attached

Appendix 1 – 2024/25 Audit Strategy and Completion Report – Report from Forvis Mazars attached

Appendix 2 - 2025/25 Unaudited Statement of Accounts - attached

Appendix 3 – 2024/25 Annual Governance Statement - attached

It was reported that in accordance with the Accounts and Audit Regulations 2015 (as amended) the 2024/25 Draft Unaudited Statement of Accounts were signed by the Director of Finance (S151 Officer) on 14 October 2025 and published on the Councils website as well as the Annual Governance Statement for the year on 15 October 2025. The 30-working day period for the Exercise of Public Rights commenced on 16 October 2025 and ended on 26 November 2025.

Forvis Mazars remains the Council’s external auditors for the 2024/25 financial year up to 2028/29 based on their appointment by the PSAA.

The Accounts and Audit (Amendment) Regulations 2024 came into force on the 30 September 2024, this legislated the statutory backstop dates, including the 2024/25 Statement of Accounts of 27 February 2026. To comply with the backstop date legislation the Council must publish accountability statements on the website by this backstop date, accountability statements need to include:

·         The Statement of Accounts together with the Audit Opinion and any certificate.

·         The Annual Governance Statement.

·         The Narrative Statement (the Council includes this within the Statement of Accounts)

The Accounts and Audit (Amendment) Regulations 2024 require those charged with governance to approve the final audited accountability statements prior to publication. Therefore, Audit Committee are asked to approve the 2024/25 Statement of Accounts (Appendix 2) and Annual Governance Statement (Appendix 3) and for the Chair of the Audit Committee and the Director of Finance to sign the 2024/25 Statement of Accounts at the meeting and delegate authority to the Leader and Chief Executive to sign-off the 2024/25 Annual Governance Statement.

Karen Murray, Engagement Partner, Forvis Mazars  presented the Audit Strategy Completion Report – year ended 31 March 2025

The purpose of the document is to summarise the audit and to explain how the statutory backstop arrangements introduced by the Accounts and Audit (Amendment) Regulations 2024, have affected the completion of the work and the reporting consequences.

It was explained that the external auditors consider two-way communication with the Council to be key to a successful audit and particularly important in the context of the backstop arrangements as it facilitates:

• reaching a mutual understanding of the scope of the audit and the responsibilities of each of the external auditors and the council;

• sharing information to assist the external auditors and the council to fulfil their respective responsibilities; and

• providing the council with constructive observations arising from the audit process even though this has been curtailed by the backstopped arrangements.

Karen explained that Forvis Mazars would usually report the outcome of their  planning work, including the significant risks identified and their planned procedures, in the Audit Strategy Memorandum. The results of their audit, including significant matters identified would usually be reported to you in the Audit Completion Report.

As a result of the backstop arrangements, it has been determined that the most appropriate way to communicate each of the matters required under auditing standards, is in a single document, the Audit Strategy and Completion Report.

As  ...  view the full minutes text for item AU.122

Report from S.151 Officer attached

Appendix A Attached

Appendix B Attached

Appendix C Attached

The Senior Auditor presented a report outlining the work undertaken by Internal Audit from 1 October to 31 December 2025 which includes the progress to date to complete the 2024/25 audit plan and commence the 2025/26 audit plan.

The report enables Members to monitor the work of the Internal Audit service, raise any issues for further consideration and provide an opportunity to request further information or to suggest areas for additional or follow up work.

The conclusions drawn from the report are:

• Work on the 2024/25 plan is completed, and the 2025/26 plan has commenced, with 11 reviews ongoing, 1 report at draft stage and 4 audits allocated to auditors.
• 8 audit reports have been issued during the quarter 3 period.
• 5 first follow up exercises and 8 second follow up exercises have been completed between the period 1 October to 31 December 2025

Those present were given the opportunity to make comments and ask questions and the following points were raised:

·         Mr Webster referred to the ICT planning meeting and asked whether this had now been arranged.

It was explained that the initial meetings had taken place and work would be commencing soon.

·     Councillor Hayes referred to Beebot AI and asked what this company was.

The Senior Auditor reported that BeeBot AI are a company that Children and Young People are using to provide an IT solution. The Information Governance Team had approached Internal Audit for advice on a Data Protection Impact Assessment (DPIA) prior to the contract being signed.

·    Councillor Berry referred to the grants register never having been audited and asked if there was a reason for this.

It was reported that there was no reason behind this. The work had commenced and was progressing and some issues have been highlighted.

·         Councillor Moss asked a question relating to overspend on the Internal Audit work from the 2024/2025 plan and asked if there was a contingency for this.

It was stated that there was no contingency but underspends on other audits and the removal of some of the planned audits helped to offset.

·         Councillor Moss stated that the schools had been extremely supportive in following up recommendations. The Committee had asked for an information sheet to be provided and shared with schools. He asked whether this had been completed.

It was confirmed that this had been done and a communication would be shared with all schools in relation to the audit work and process.

·     Councillor Rahimov asked whether the 24/25 remaining audits were being completed as a rollover. It was confirmed that all outstanding 24/25 audits were now completed.

It was agreed:

1. That the changes and amendments to the 2025/26 audit plan be approved.

2. That the report and the work undertaken by Internal Audit be noted.

Report attached

Draft Terms of Reference attached

The Senior Internal Auditor presented a report setting out the updated Terms of Reference that would be presented for approval to Council on 25 February 2026.

Those present were giver the opportunity to make comments and the following points were raised:

·     Councillor Berry referred to all meetings should be held in public and asked if a paragraph could be added to state that the meetings could also be recorded.

It was advised that a sentence be added in reference to the Public Participation section of the constitution.

Councillor Bernstein referred to the statement that decisions are to be taken by consensus and that this be updated to state that decisions are ‘ideally’ to be taken by consensus.

It was agreed:

That subject to the amendments raised being included, the Terms of reference be endorsed and forwarded to Council for approval and inclusion in the Council Constitution.

To consider passing the appropriate resolution under Section 100(A)(4) of the Local Government Act 1972 that the press and public be excluded from the meeting during consideration of the following items of business since they involve the likely disclosure of the exempt information stated.

It was agreed:

That the press and public be excluded from the meeting under Section 100 (A)(4), Schedule 12(A) of the Local Government Act 1972, for the reason that the following business involves the disclosure of exempt information as detailed against the item

Report from the S.151 Officer attached

The Senior Auditor introduced the report which was provided for information only.

The report related to the reports highlighted in the Internal Audit Progress report which was delivered in the open session of the meeting.

Members were given the opportunity to seek clarification / challenge any parts of the report / audit reports which they have already received each month.

It was agreed

That the report be noted.

Report from the S.151 Officer attached

The Senior Auditor introduced the report which was provided for information only.

Members were given the opportunity to seek clarification / challenge any parts of the report

It was agreed

That the report be noted.