The Audit Committee of Wokingham Council met on Wednesday 03 June 2026 to review the external audit plan, the corporate risk register, the annual governance statement, and the internal audit report for the 2025/26 financial year. Key discussions included the council's financial resilience, the implementation of SEND reforms, and the effectiveness of internal controls.

External Audit Plan and Strategy for Year Ended 31 March 2026

KPMG presented their external audit plan and strategy for the year ending 31 March 2026. The plan outlines the audit firm's risk assessment and planned approach, with a focus on rebuilding assurance following previous disclaimed audit opinions. The auditors expressed optimism that the work in 2025/26 would lead to an unqualified audit opinion, a significant improvement from the qualified opinion received for the 2024/25 audit. Key risk areas identified include the valuation of land and buildings, management override of controls, and the valuation of post-retirement benefit obligations. Materiality levels for the audit were set at £13.7 million for the group and £13.4 million for the council, with misstatements over £0.68 million to be reported. The audit plan also detailed the use of specialists and the planned communication with the committee.

Corporate Risk Register Review

The committee reviewed the Corporate Risk Register, noting that the overall risk position remained unchanged since the previous meeting. The top corporate risks identified were: Budget and Financial Resilience; Outcomes and Costs for Children with SEND; Cyber Security; Adult Social Care supplier sustainability and sufficiency; and Children's Placement & Transitional Accommodation Sufficiency. Updates were provided on several risks, including Uncontrolled Development, where milestones for mitigation had shifted slightly due to an extended examination period. The SEND Reforms Implementation and financial sustainability risk was highlighted as remaining Red until the SEND Local Reform Plan is finalised, despite progress on free school provisions. The risk associated with Support for children seeking asylum and require Care from the Local Authority was downgraded from Amber to Green due to strengthened controls and completed mitigating actions. The committee also discussed benchmarking of risk registers, noting that Wokingham had more risks listed than other councils in the region, but that its register was more concise and focused on mitigating actions.

Annual Governance Statement 2025-26

The committee reviewed the Annual Governance Statement for 2025-26, which provides an overview of the council's governance arrangements and identifies areas for improvement. The statement concluded that the council's governance arrangements are fit for purpose and support the achievement of its objectives. Areas identified for improvement included the timeliness of case progression in whistleblowing, the number of upheld complaints (particularly related to SEND), and the wording used to describe the impact of Ofsted reports. The committee discussed the council's approach to AI governance and the potential implications of AI on complaint handling and information governance. Recommendations were made to review the annual governance statement and consider whether it accurately reflects the risk environment and supports the conclusion that governance arrangements are fit for purpose.

2025/26 Annual Internal Audit and Investigation Report

Catherine Hickman, Head of Internal Audit and Investigations, presented the annual report for 2025/26. The report provided an overall opinion that the council's internal control, risk management, and governance framework is Substantially Complete and Generally Effective but with some improvements required. This opinion was based on the work undertaken throughout the year, including audits of key corporate risks and operational systems. Two audits, Building Control and Tree Management, received a Category 3 audit opinion, indicating incomplete risk mitigation controls. The report detailed the progress of anti-fraud activities, noting no material fraud, irregularities, or corruption discovered during the year. The self-assessment against the Institute of Internal Auditors Global Internal Audit Standards was also presented, with an action plan to address identified gaps. The committee discussed the resourcing of the internal audit team, including the recruitment of a new Senior Auditor and a Data Analytics Apprenticeship.

Forward Programme

The committee considered the forward programme for the remainder of the municipal year. Items for the next meeting in September 2026 included an update on the Corporate Risk Register, the Senior Information Risk Owner (SIRO) Annual Report, the Annual Governance Statement, an update on the CIPFA code, and a value for money report from KPMG. The committee also requested an update on the draft accounts for 2025/26.