The Audit Committee of Derbyshire County Council is scheduled to meet on Tuesday, 27 January 2026, to review progress on internal and external audits, and to discuss risk management within Corporate Services and Transformation. The meeting will also cover an update on the Internal Audit Plan and the progress of the external audit for the year ending 31 March 2025.

Internal Audit Progress Report

A key item on the agenda is the Internal Audit Progress Report for the period ending 12 January 2026. This report, prepared by Mark Lunn, Assistant Director of Finance (Audit), will provide an update on the progress made against the approved Internal Audit Plan for 2025-26. The plan is developed using a risk-based approach, drawing from various sources including the Council Plan and departmental risk registers. The report will detail the work undertaken during the period and analyse the progress of the Internal Audit Unit's Performance Indicators. It is noted that the delivery of the Audit Plan has been impacted by resource constraints, though improvements have been made with recent recruitment and a staff member's return from long-term sick leave. Despite these challenges, the report indicates that sufficient audit coverage is expected to be maintained to support the Annual Audit Opinion. The report also includes updates on counter-fraud and investigations, highlighting completed projects and ongoing work, as well as a review of the continuous audit process.

External Audit Progress Report

The committee will also receive an External Audit Progress Report from Forvis Mazars LLP, detailing the progress of the audit for the year ending 31 March 2025. The report notes that the Council was unable to publish its unaudited financial statements by the deadline of 30 June 2025. The external auditors received a first draft of the financial statements on 10 October 2025, with the final published version appearing on 5 November 2025. A significant issue identified relates to the Prior Period Adjustment (PPA) concerning property valuations, which was not complete in the draft financial statements. The auditors have stated that due to the limited audit period and resource pressures within the Council's finance team, it is now expected that another disclaimer of opinion will be issued on the 2024/25 financial statements. This means that no assurance will be provided on these statements. The external auditors are working with the Council to schedule an additional audit in the spring to complete the outstanding work. The report also covers the progress on the Value for Money arrangements, with the draft Auditor's Annual Report having been presented to the committee in December 2025, identifying three significant weaknesses.

Overview of Corporate Services & Transformation Risk Management

The committee is scheduled to receive an overview of risk management within Corporate Services and Transformation. This item will provide insight into how risks are identified, assessed, and managed within these key council departments.

Arlingclose Training Session

An Arlingclose training session is also listed on the agenda. Arlingclose is an investment advisory firm that provides services to local authorities. The specific content of this training session is not detailed in the provided documents.

Digital Services Risk Management

Finally, under Part II - Exempt Items, the committee is scheduled to discuss Digital Services Risk Management. This item will be considered with the public excluded from the meeting, as it is anticipated that exempt information will be disclosed.