The Governance and Audit Committee of Leicester City Council is scheduled to meet on Monday 26 January 2026 to review procurement updates, internal audit progress, and to consult on the upcoming internal audit work programme. The committee will also review an action tracker from previous meetings.

Mid-Year Procurement Update

The committee will receive a report providing a mid-year update on procurement waivers for the first half of the 2025-26 financial year. This follows concerns raised by the committee in September 2025. The report details that in the first half of 2025-26, there were 20 waivers issued with a total value of just under £4 million. Of these, 18 did not exceed the applicable legal threshold, meaning the contracts were not in breach of procurement law, although internal council rules were not followed. The remaining two instances represent a greater risk, with competitive procurement currently underway. The report includes a breakdown of waivers by department and by reason, comparing them to the full year data from 2024-25. It also provides further detail on waivers exceeding £50,000, including the reference, title, value, whether there was a breach of council rules or procurement law, the reason for the waiver, the department involved, and the action taken. For example, a waiver for Security Services with a value of £686,092.72 was issued due to Continuity of provision and is currently pending compliant procurement. The report also notes that while there are no direct equality implications, the council's procurement processes must adhere to the Equality Act 2010 and the Public Sector Equality Duty (PSED).¹

Internal Audit Progress Report

A report will be presented on the progress of the 2025/26 internal audit work programme, up to 6 January 2026. The committee is recommended to note this progress and the plans for the remainder of the year. The report indicates that five audits have been finalised since the last committee meeting, with four more at the draft report stage. Nine audits are currently in progress, with most nearing completion. Planning has begun for the Right to Buy audit, and a further six audits are set to commence soon, which will conclude the 2025/26 work programme. The report also highlights that internal audit has continued to support the council by certifying central government grants and undertaking consultative engagements. An audit of the council's use of waivers during 2024/25, requested by the committee, found a well-designed process but noted that four out of the five highest value waivers reviewed were retrospective, meaning they were requested after the council's Contract Procedure Rules had been breached. The report also details the follow-up of agreed actions from previous audits, with 23 out of 33 actions satisfactorily implemented.

Internal Audit Work Programme Consultation – 2026-27

The committee will be asked to provide its views on areas that should be considered a priority for inclusion in the 2026/27 internal audit work programme. This consultation is the first stage in developing the programme, with a draft to be presented in March 2026. The report outlines the approach to developing the work programme, which is based on an assessment of risk and aligns with the council's strategic risks and objectives. It identifies 11 key assurance areas, including strategic planning, organisational governance, financial governance, risk management, information governance, performance management and data quality, procurement and contract management, people management, asset management, programme and project management, and IT governance. The report poses questions to the committee, such as which strategic risks they would like internal audit to examine and what they perceive as the biggest threats to the council's priorities. The report also notes that Leicester City Council, like other local authorities, faces significant financial challenges and will continue to do so in 2026/27, requiring a continued drive for savings and prudent financial management. The council's ambition to reach 'net zero' for its own estate and operations, and for the wider city, is also highlighted as a key consideration, particularly in relation to the Climate Ready Leicester Plan and the strategic risk register.

Action Tracker

Finally, the committee will review an action tracker, noting progress on actions agreed at previous meetings that have not been reported elsewhere on the agenda. The current tracker indicates an open action from the previous meeting regarding the Health and Safety Annual Report, where a further breakdown of lone working will be included in future reports, and an invitation will be extended to Trade Union representatives.