The Governance and Audit Committee of Leicester Council met on Monday 13 July 2026 to review the council's financial health, audit plans, and governance frameworks. Key discussions were scheduled to include the external audit plan for 2025/26, the draft statement of accounts and annual governance statement for the same year, and the council's arrangements for overseeing improvements following a Regulator of Social Housing inspection. The committee was also set to receive annual reports on counter fraud activities and the Head of Internal Audit's work.

External Audit Plan and Risk Assessment 2025/26

The committee was scheduled to consider the External Audit Plan and Risk Assessment for the financial year 2025/26, as submitted by the Director of Finance, Amy Oliver. This report, detailed in the Public reports pack Monday 13-Jul-2026 17.30 Governance and Audit Committee.pdf document, outlines the work Grant Thornton UK LLP intends to undertake to audit the Council's Statement of Accounts. The plan details significant risks identified, including management override of controls, valuation of land and buildings, and the valuation of the gross pension fund liability. It also sets out the audit approach to materiality and the planned procedures for value for money arrangements. The report noted that the statutory deadlines for local authority audits have been extended due to issues in the sector, with the final audited accounts now required by 31 January 2027. However, the Council and auditors are working towards an internal deadline of 30 November 2026.

Draft Statement of Accounts and Annual Governance Statement 2025/26

The Director of Finance, Amy Oliver, was also scheduled to present the Draft Statement of Accounts and Annual Governance Statement for 2025/26. These documents, found in the Public reports pack Monday 13-Jul-2026 17.30 Governance and Audit Committee.pdf, are required annually by the Accounts & Audit (England) Regulations 2015. The Statement of Accounts provides a comprehensive overview of the Council's financial position, including the Movement in Reserves Statement, Comprehensive Income and Expenditure Statement, Balance Sheet, and Cash Flow Statement. The Annual Governance Statement assures the public that the Council operates lawfully and with proper standards of behaviour, safeguarding public funds. Key accounting estimates, such as property, plant, and equipment asset values, and the pensions liability, were highlighted as areas requiring professional judgement.

Housing Regulator of Social Housing – Governance and Assurance Arrangements

The committee was due to receive a report from Chris Burgin, Director/Officer, concerning the Governance and Assurance Arrangements for the Regulator of Social Housing Improvement Programme. This report, detailed in the Public reports pack Monday 13-Jul-2026 17.30 Governance and Audit Committee.pdf, outlines the framework for overseeing the Council's response to a C3 consumer grading received in May 2025, which indicated serious failings and significant improvement is needed . The report aimed to provide assurance that clear lines of accountability, robust monitoring and risk management, and effective Member oversight are in place for the delivery of the Performance Improvement Plan.

Counter Fraud Annual Report 2025/26

Daniel Clubb, Assistant Director – Corporate Fraud (Veritau), was scheduled to present the Counter Fraud Annual Report 2025/26, including an update on the Annual National Fraud Initiative. This report, available in the Public reports pack Monday 13-Jul-2026 17.30 Governance and Audit Committee.pdf, details the counter fraud activities undertaken since the service transferred to Veritau in October 2025. It covers proactive measures, investigative work, and the outcomes of the National Fraud Initiative data matching exercises. The report also noted that the methodology for measuring counter fraud work and its impact is under review, which may affect comparability with previous years' figures.

Head of Internal Audit Service Annual Report 2025/26

Connor Munro, Assistant Director – Audit Assurance (Veritau), was due to present the Head of Internal Audit Service Annual Report 2025/26. This report, found in the Public reports pack Monday 13-Jul-2026 17.30 Governance and Audit Committee.pdf, summarises the internal audit work conducted during the year and provides an opinion on the adequacy and effectiveness of the council's framework of governance, risk management, and control. The Head of Internal Audit was expected to conclude that Reasonable Assurance can be provided, noting that no significant control weaknesses relevant to the Annual Governance Statement were identified. The report also covers the outcome of Veritau's quality assurance and improvement programme, confirming conformance to public sector internal auditing standards.

Insurance Annual Report 2025/26

Stuart McAvoy, Head of Finance, was scheduled to submit the Insurance Annual Report 2025/26. This report, detailed in the Public reports pack Monday 13-Jul-2026 17.30 Governance and Audit Committee.pdf, provides an overview of the Council's internal and external insurance arrangements, claims received, and the outcomes of the claims handling process. The report aims to assure the committee that the Council is effectively managing the financial risks associated with insurance claims. The report noted that the insurance market remains challenging, with cost pressures driven by factors such as increasing risks of adverse weather events and rising costs in serious injury cases.

The committee was also scheduled to note the membership and meeting dates for the commission for the 2026/27 period.