The Audit Committee of Aberdeenshire Council met on Wednesday 15 April 2026 to review several internal and external audit reports. Key discussions included significant concerns raised in the audit of Commercial and Industrial Lets, the progress of the Route Map 2030 and Beyond initiative, and the status of the Care Management System implementation. The committee also considered the Local Government in Scotland Financial Bulletin and the External Audit Annual Audit Plan for 2025/26.

Commercial and Industrial Lets Audit

An internal audit report on Commercial and Industrial Lets highlighted significant control weaknesses, including outdated procedures, missing documentation for tenancies, and substantial failures in income recovery and billing. Notably, nearly £1 million in rent was not collected due to suppressed billing and properties being occupied without formal agreements. Management acknowledged these issues, attributing some to staff vacancies and workload pressures, and outlined a plan for improvement over the next year. However, several councillors expressed a lack of assurance, leading to a decision to refer the matter for further scrutiny at the Business Services Committee.

Waste Management Audit

An audit of Waste Management services found reasonable assurance over the control framework, with a moderate risk rating. However, areas for enhancement were identified in the Waste Strategy, Risk Management, and Stock Management. The Council's Waste Management Plan has been extended beyond its end date, and the risk register for the Environment and Sustainability service was found to be outdated. Stock management at the Jackieshillock site was also noted as having poor controls and security concerns. Management acknowledged these findings and agreed to implement the recommendations.

Route Map 2030 and Beyond Scrutiny

The committee reviewed the outcome of a Stage 1 scrutiny referral concerning the Route Map 2030 and Beyond initiative. The Infrastructure Services Committee had previously concluded that they were assured by the Stage 1 report and that a Stage 2 workshop was not required. The Audit Committee was asked to agree whether they were also assured by the actions taken. Following extensive discussion, a vote was held on whether the committee was assured or not. The amendment to not be assured and proceed to a Stage 2 workshop was carried by the Chair's casting vote.

Landscape Services Audit Update

An update was provided on the Stage 1 process for the internal audit of Landscape Services. The Infrastructure Services Committee had previously been assured by their Stage 1 scrutiny report and did not require a Stage 2 workshop. However, the Audit Committee was not assured by the information presented, particularly regarding the status of outstanding audit recommendations. Jamie Dale, Chief Internal Auditor, confirmed that six out of twelve recommendations remained open, with no updates from the service since March 2026. After considerable debate, the committee agreed to defer the decision for one cycle to allow the service to liaure with internal audit and provide updated information in the required format.

Care Management System Audit

The committee reviewed the Stage 1 report for the Care Management System, concerning the implementation of the replacement Eclipse system. All internal audit recommendations related to the previous system have been closed. While the overall delivery risk for the new system remains high due to complexity and constrained timelines, the formation of a new Project Board with senior officer representation and a clear project timetable has provided greater confidence. The project is now proceeding with a focus on core functionality, and a revised project plan aims for a go-live by September 2028. The committee expressed assurance regarding the progress and the handling of the transition.

Local Government in Scotland Financial Bulletin

The committee received a summary of Audit Scotland's Financial Bulletin for 2024/25, highlighting significant and structural financial pressures across local government in Scotland. The bulletin noted that incremental efficiencies alone are insufficient, and councils require strong medium-term planning, clear savings delivery, and careful management of reserves and debt. Aberdeenshire Council's Medium-Term Financial Strategy reflects these challenges, with a projected cumulative financial gap of over £158 million by 2030/31. The committee noted the implications for the council's financial sustainability and the actions being taken to strengthen financial planning and reporting.

External Audit Annual Audit Plan 2025/26

The committee reviewed the External Auditor's Annual Audit Plan for 2025/26. Grant Thornton UK LLP outlined their planned scope, approach, and timing for the audit. Key areas of focus include the valuation of land and buildings, pension liabilities, and management override of controls. Financial sustainability was identified as a significant wider-scope risk, aligning with the council's own medium-term financial strategy. The plan also detailed the audit fees and confirmed the auditor's independence. The committee was asked to note the plan and its implications for their scrutiny role.