The Audit and Risk Committee meeting on 22 June 2026 focused on the council's financial health, risk management, and audit progress. Key decisions included the approval of the work programme for the upcoming year, a review of the council's action plan in response to external auditor recommendations, and discussions on the statement of accounts and accounting policies. The committee also received updates on external and internal audits, counter-fraud activities, and the council's key risks.

Work Programme and Action Monitoring Log 2026-2027

The committee reviewed and agreed the work programme for the Audit and Risk Committee for 2026-2027. This programme outlines the key areas of focus for the committee's oversight activities throughout the year, including financial reporting, risk management, and internal audit findings. The committee also reviewed the action monitoring log, agreeing that completed actions could be closed and outstanding ones carried over.

Update on the Council's Action Plan Response to External Auditor Recommendations

The committee received an update on the council's action plan in response to recommendations from the external auditor. This plan addresses statutory recommendations made under paragraph 2 of Schedule 7 of the Local Audit and Accountability Act 2014. The discussion highlighted the ongoing work to implement these recommendations, with a focus on improving financial resilience and governance.

Statement of Accounts 2025/26 Update, Accounting Policies 2025-26 and Update on Closedown & Accounts Improvement Plan

An update was provided on the 2025/26 statement of accounts, including proposed accounting policies and progress on the accounts closedown and improvement plan. This item is crucial for ensuring the accuracy and timeliness of the council's financial reporting. The committee noted the ongoing efforts to address historical issues in financial reporting and to strengthen the accounts closedown process.

External Audit Update

Representatives from the external auditors, Forvis Mazars, presented an update on their audit work. This included discussions on the audit strategy memorandum for the Pension Fund accounts and the challenges faced in previous years, such as the disclaimed audit opinion on the 2024/25 accounts. The auditors outlined their approach to rebuilding assurance over the coming years, acknowledging the significant work required to address historical issues and achieve an unmodified audit opinion. The potential for a qualified or unmodified opinion on the 2025/26 accounts was discussed, dependent on the council's progress in resolving outstanding issues.

Annual Governance Statement

The committee reviewed the progress on the Annual Governance Statement (AGS) for 2024/25 and received an update on the preparation of the 2025/26 AGS. This statement provides assurance on the council's corporate governance arrangements. The discussion highlighted areas of progress and ongoing challenges in ensuring robust governance across all directorates.

Internal Audit Progress Report 2025-26 and 2026-27

An update was provided on the progress of internal audits for both 2025/26 and the planned work for 2026/27. The report detailed the assurance opinions issued for completed audits, with a mixed picture of reasonable and limited assurance across different services. Management provided updates on the implementation of agreed actions arising from limited assurance reports. The committee noted the importance of timely action by management to address identified weaknesses.

Counter Fraud Progress Report 2026-27

The committee received an update on counter-fraud activities for 2026/27. This included progress on investigations, fraud prevention initiatives, and the impact of additional funding to expand the counter-fraud team, particularly focusing on housing-related fraud. The report highlighted the council's participation in the Cabinet Office's National Fraud Initiative and the use of data sharing to identify potential fraud.

Committee Annual Report to Full Council 2025-26

The committee reviewed and approved the annual report of the former Corporate Committee (now Audit and Risk Committee) for 2025/26. This report summarises the committee's activities and the assurance provided over the council's governance, risk management, and control arrangements. The report will be submitted to Full Council for their review.

Key Risk Summary (Q4 2025/26)

A summary of the council's key risks at the end of the 2025/26 financial year was presented. This included significant risks related to finance, cyber security, regulatory compliance, reputation, emergency planning, and the workforce. The report detailed existing and planned controls for each risk and provided an assessment of the current and target risk ratings. The committee discussed the effectiveness of the risk management framework and the sufficiency of mitigation measures.

Assurance on Key Council Risks Held by Integrated Health and Adult Social Care Directorate

This report provided an overview of the key risks within the Integrated Health and Adult Social Care Directorate, focusing on council-related risks. It detailed the current key risks, control measures, and trends, offering assurance on the management of these risks. The discussion highlighted specific risks such as financial sustainability, performance against key indicators, and the effective response to health protection incidents.

Treasury Management Performance Report to 31 March 2026

The committee received a report on the treasury management performance for the financial year ending 31 March 2026. This included details on borrowing levels, average interest rates, investment balances, and income generated. The report also addressed the overspend on interest payable compared to the budget and provided an update on the future consideration of the council's property fund investment.

The meeting concluded with the committee agreeing the recommendations presented in the various reports, demonstrating their commitment to robust governance, risk management, and financial oversight.