The Audit and Governance Committee of Buckinghamshire Council met on Tuesday 19 May 2026 to review the external audit plans for the council and its pension fund, discuss progress on the PMO Assurance Review, and examine contract waivers and breaches. Key decisions included noting the external audit plans and agreeing to defer a follow-up assurance review on the Project Management Office.

External Audit Plans 2025/26

The committee reviewed the external audit plans for Buckinghamshire Council and the Buckinghamshire Pension Fund for the 2025/26 financial year, presented by KPMG LLP. The plans outlined the scope, materiality, and identified risks for the upcoming audits. For the council, the audit plan focuses on rebuilding assurance following previous disclaimed audit opinions, with key areas including the valuation of investment properties, management override of controls, and the valuation of land and buildings. The materiality for the council's group accounts was set at £28.4 million, and for the council accounts at £28.1 million. The estimated audit fee for the council is £0.690 million, with additional fees expected for the rebuilding assurance process.

For the Buckinghamshire Pension Fund, the audit plan also detailed the scope and risks, with materiality set at £47 million based on total assets. Significant risks identified include management override of controls, the valuation of investments, and the accuracy of contributions. The estimated audit fee for the pension fund is £0.107 million.

During the discussion, Councillor Martin Tett CBE raised concerns about the current levels of uncertainty mentioned in the audit plan, seeking clarification on whether this referred to the council's finances, the sector, or the broader economic and global position. Sarah Brown, partner at KPMG, clarified that it referred to the general economic and geopolitical climate. Councillor Chris Poll inquired about the risk of suppliers ceasing to be able to supply, which was noted as a consideration but not a primary audit risk unless it led to a material misstatement in the financial statements. Councillor Robin Stuchbury raised questions about the reporting of climate change risks, with Sarah Brown explaining that the current audit remit focuses on financial statements up to 31 March 2026, and wider climate change impacts would be considered as part of the value for money assessment. Councillor Alex Collingwood questioned the process of property valuations and the role of the council in challenging external valuers, while Councillor Nidhi Mehta elaborated on the internal challenge processes. The committee also discussed the valuation of pension obligations, with Councillor Lesley Clarke OBE noting that experts had already provided an evaluation.

The committee noted the draft External Auditor's Audit Plan for 2025/26 for Buckinghamshire Council and the final plan for the Buckinghamshire Pension Fund.

Audit and Governance Committee Annual Report to Council

The committee reviewed the draft Annual Report to Council for the 2025/26 municipal year. The report summarises the committee's work in overseeing governance, risk management, internal and external audit, treasury management, financial reporting, contract management, and counter fraud activities. It highlights the committee's role in providing independent assurance and strengthening public confidence.

Key areas of work covered include the approval of the Annual Governance Statement, oversight of the Statement of Accounts, support for the external auditors' rebuilding assurance work, and review of treasury management strategies. The report also details the committee's scrutiny of contract waivers and breaches, purchasing card governance, and council-owned trusts. The committee noted the positive outcomes of internal audits and the progress made in counter fraud activities.

Councillor Simon Rouse suggested that the committee should not note significant progress in the report, but rather note the progress, as he felt it was not the committee's purview to determine the significance of progress. This amendment was agreed. The committee agreed to delegate the approval of the final version of the report to the Monitoring Officer in consultation with the Chairman, for presentation to the Council in July 2026.

PMO Assurance Review Progress Report

The committee received an update on the Project Management Office (PMO) Assurance Review, which had initially been conducted in December 2024. The review had identified areas of good practice, such as clear strategic alignment and stronger governance, but also highlighted challenges related to capacity, processes, and systems.

Since the review, there had been a leadership transition within the relevant directorate, and significant improvements had been designed and planned, including the delivery of a Corporate Change Hub, a redesign of governance, capacity, and capability arrangements, and the planned implementation of a Project Portfolio Management (PPM) system. These improvements are intended to address the remaining challenges identified in the assurance review.

Councillor Simon Rouse expressed reservations about deferring the follow-up assurance review, arguing that delays in assurance should only occur in exceptional circumstances and that the current situation seemed to indicate a lack of progress at the expected pace. He proposed not agreeing to the deferral. Councillor Martin Tett CBE echoed these concerns, questioning the use of the word significant to describe progress and highlighting that many areas were still rated as amber.

After considerable debate, the committee agreed to note the progress (removing the word significant as proposed by Councillor Rouse) and, by a unanimous vote, decided not to agree to the deferment of the follow-up assurance review, opting instead to proceed with the review now.

Contract Procedure Rules – Waivers & Breaches

The committee reviewed a six-monthly summary of contract waivers and breaches reported across the council for the third and fourth quarters of the 2025/26 financial year. During this period, 12 waivers totalling £18,189,495.40 were completed, and two breaches were reported.

Councillor Martin Tett CBE questioned the robustness of the council's processes, given the number of waivers and breaches. Councillor Robert Carington, Cabinet Member for Resources, assured the committee that the processes were robust and that the Cabinet Office was satisfied with the measures taken. He noted that the number of waivers had decreased compared to the previous year.

Councillor Simon Rouse raised concerns about the magnitude of waivers and whether they represented a normal level of business for an authority of Buckinghamshire's scale. He also questioned the resilience of the council's service and supply landscape, particularly in areas like adult social care and children's services, where waivers were used for critical services. He specifically queried the waiver for Children's Services SEND commissioning, questioning why the change in procurement legislation was cited as a reason for the waiver when the legislation had been well-trailed.

Councillor Alex Collingwood expressed strong displeasure with the explanation for the Children's Services waiver, arguing that it appeared to be a routine continuation of existing supplier arrangements rather than a genuine waiver situation. He felt the explanation was not acceptable. Councillor Robin Stuchbury inquired about the rationale for discussing breaches in confidential session, which was explained as standard practice for more serious matters.

The committee was assured that processes were being improved to prevent breaches and that the number of waivers was decreasing. The Strategic Procurement Team committed to providing further information on the rationale behind the Children's Services waiver and to conduct benchmarking with peer councils. The committee noted the report and agreed to the additional explanationary note and benchmarking.

Other Business

The committee also noted the Action Log and the Work Programme. The date of the next meeting was scheduled for 21 July 2026. The committee then moved into a confidential session to discuss further agenda items.