The Audit and Governance Committee of Worcestershire Council met on Friday 29 May 2026 to review the council's external audit plans, discuss its financial position, and assess its performance and risk management strategies. The meeting's agenda included updates on the council's financial support, its approach to economic crime, and the committee's own self-assessment.

External Audit - Council and Pension Fund Audit Plans and Progress Update

The committee was scheduled to receive an update on the external audit plans for both the council and the Worcestershire Pension Fund for the year ending 31 March 2026. Grant Thornton, the appointed external auditor, was expected to present their audit plans, outlining the scope and timing of their work. The report pack indicated that the audit would assess whether the council has made proper arrangements for securing economy, efficiency, and effectiveness in its use of resources. A progress update on the 2024/25 interim external audit report recommendations was also on the agenda. Significant risks identified for the council's audit included the valuation of land and buildings, including the Energy from Waste (EfW) Plant, and the valuation of the Defined Benefit Pension Liability/Asset. For the Pension Fund, significant risks included management override of controls and the valuation of level 3 investments.

Exceptional Financial Support and External Assurance Review

A key item for discussion was Worcestershire County Council's financial position, specifically its application for Exceptional Financial Support (EFS). The council had received indicative approval for up to £59.933 million for 2026/27, conditional on an external assurance review commissioned by the government and led by the Chartered Institute of Public Finance and Accountancy (CIPFA). This review was set to assess the council's financial management, sustainability, service delivery, and governance. The report highlighted that EFS is a temporary measure and does not remove the need for medium and long-term financial sustainability. A CIPFA report on assurance reviews for 12 councils in receipt of EFS indicated common issues such as planning and strategy weaknesses, capacity and skills gaps, and difficulties in delivering savings.

Audit and Governance Committee Self-Assessment 2025/26

The committee was scheduled to review the results of its own self-assessment for the 2025/26 period. This self-assessment, based on CIPFA guidance, aimed to evaluate the committee's effectiveness in areas such as governance, risk management, and internal control. The report indicated that the survey results, based on a limited number of returns, highlighted potential areas for improvement, particularly concerning a better understanding of CIPFA guidance and Global Internal Audit Standards. Two key themes emerged: the need for a better understanding of how the committee can influence, challenge, and self-develop, and a greater understanding of the Global Internal Audit Standards.

Economic Crime and Corporate Transparency Act 2023 Action Plan Update

An update was scheduled on the council's Counter Fraud Action Plan, developed in response to the Economic Crime and Corporate Transparency Act 2023. This legislation introduced the offence of failure to prevent fraud. The report indicated that the council was in a strong position regarding these legislative changes, with external audit having reviewed the plan and made one recommendation, which had been incorporated. The action plan covered areas such as fraud risk assessment, fraud awareness, and fraud response planning.

Performance and Risk Management Update

The committee was to receive an update on the council's corporate performance and risk status. The performance report indicated a generally stable position at Quarter 4 of the 2025/26 financial year, with most indicators on track. However, some Red and Amber issues were noted, particularly in demand-led services, complaints handling, and service resilience. Key areas of concern included escalating children's social care complaints and delays in adult social care financial assessments. The risk management update stated that the council's overall risk position remained stable but under pressure, with no unmanaged Red corporate risks identified. However, several Amber risks required ongoing oversight, particularly concerning financial sustainability and service demand pressures. Three new corporate risks had been added to the register: CQC Registration of Green Hill Lodge, Fuel Shortage due to Iran Conflict, and LGR Business Continuity Preparedness.

Work Programme

The committee was also asked to note its future work programme, with scheduled meetings and key topics for the upcoming year. These included updates on accounts, the Annual Governance Statement, internal and external audit reports, and performance and risk management.