The Audit Committee of Cornwall Council met on Friday 22 May 2026, electing Councillor Laurie Magowan as Chair and Councillor Nicola Boase as Vice-Chair. The committee reviewed the external auditor's plans for the upcoming financial year, received the Chief Internal Auditor's annual report, and approved the internal audit plan for 2026/27 along with associated policies.

Appointment of Independent Audit Lay Member

The committee agreed to establish an Appointments Panel, comprising three Audit Committee Members including the Chair, to recruit a second Independent Lay Member. Authority was delegated to this panel to select a candidate and make recommendations to the Council for approval.

Council Owned Companies - Annual Third-Party Assurance Summary and Forward Assurance Plans

The committee received presentations and considered reports on the third-party assurance outcomes for the previous year and planned assurance activities for the forthcoming year across Cornwall Housing Ltd, Celtic Sea Power Ltd, Corserv Ltd, and Treveth Property Holdings LLP. The committee took high-level assurance from these consolidated views.

Cornwall Council External Audit Plan 2025-26 and Audit Committee Update and Audit Sector Briefing

The committee reviewed the External Auditor's Audit Plan for Cornwall Council for the 2025/26 financial year and noted the accompanying update and sector briefing. Key risks identified included management override of controls, valuation of land and buildings, pension liabilities, group consolidation, and revenue recognition. The committee was assured that the Council was in a strong position to meet submission deadlines, although acknowledged that future deadlines were tightening.

Cornwall Pension Fund External Audit Plan 2025-26

The committee noted the External Audit Plan for the Cornwall Pension Fund for the 2025/26 financial year. Significant risks identified for the Pension Fund included management override of controls and the valuation of level 3 investments. The plan also detailed additional work required for the triennial valuation testing, which would incur an additional fee variation.

Annual Governance Statement 2025-26

The committee considered the draft Annual Governance Statement for 2025/26. It was approved as a draft for signature by the Chief Executive, with the final version to be presented after external audit. The statement outlined the Council's governance arrangements and identified areas for improvement, including financial sustainability and the governance of council-owned entities. A new governance issue was identified regarding the method for registering officer declarations of interest, gifts, and hospitality, with plans to implement an improved electronic system.

Chief Internal Auditor Annual Report 2025-26

The committee received the Chief Internal Auditor's Annual Report, which provided an overall opinion of reasonable assurance regarding the adequacy and effectiveness of the Council's governance, risk management, and control environment. The report detailed audit findings across directorates, noting areas of limited assurance such as contract management and the financial reporting and savings monitoring. The committee acknowledged the comprehensive nature of the report and the ongoing efforts to address identified issues.

Internal Audit Plan 2026-27 and Associated Policies

The committee approved the Internal Audit Plan for 2026/27 and noted a suite of associated policies, including the Audit Committee Terms of Reference, Internal Audit Charter, Internal Audit Strategy, Counter Fraud & Corruption Strategy, Anti-Fraud, Bribery & Corruption Policy, Anti-Money Laundering Policy, and Whistleblowing Policy. The plan was developed on a risk basis and aligned with the Council's strategic risks and priorities.

Audit Committee Annual Report 2025-26

The committee reviewed its own activities over the past year, noting positive feedback from stakeholders and a self-assessment that indicated effective operation in line with best practice. The report summarised the committee's work on internal and external audit, risk management, governance, and anti-fraud measures. The proposed work programme for 2026/27 was also approved. The committee recommended the Annual Report for approval by Full Council.

Audit Committee Work Programme 2026/27

The committee approved the proposed work programme for the upcoming year, which is predominantly driven by the work of both internal and external auditors and includes reviews of council-owned entities, external audit plans, the annual governance statement, and the chief internal auditor's report.

Audit Committee Self-Assessment

The committee approved the self-assessment of its effectiveness against good practice guidance. The assessment indicated a positive overall performance, with only minor areas for improvement identified, reflecting the committee's maturity and effectiveness. An action plan was established to address these minor areas.