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

External Audit Plan and Strategy for Year Ended 31 March 2026

The committee received the external audit plan and strategy for the year ending 31 March 2026 from KPMG. Jonathan Brown, the engagement partner, outlined the planned audit approach, which includes continuing build back assurance work to address the legacy audit backlog. The goal for the 2025/26 audit is to achieve an unqualified audit opinion, a significant improvement from the qualified opinion received for the 2024/25 audit. The plan detailed materiality levels, with group materiality set at £13.7 million and a lower threshold of £0.68 million for reporting misstatements. Key risk areas identified by KPMG include the valuation of land and buildings, management override of controls, and the valuation of post-retirement benefit obligations. The committee discussed the valuation of land and buildings, noting that the council's internal valuation team would not be directly involved in the audit, with KPMG relying on their own specialists. Questions were also raised about pension fund surpluses and the potential for local authorities to access them. The audit plan also addressed the rebuttal of significant risk for revenue, citing council tax, business rates, and grant income as highly predictable.

Corporate Risk Register Review

The committee reviewed the Corporate Risk Register, noting that the overall risk position remained unchanged since the previous meeting in February 2026. 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 SEND Reforms Implementation and financial sustainability, where the council has gained more local control over the delivery of two free schools. The risk associated with Support for Children Seeking Asylum and Requiring Care from the Local Authority was downgraded from Amber to Green due to strengthened controls and completed mitigating actions. The committee also discussed the benchmarking of risk registers, noting that Wokingham had more risks listed than other councils in the region, but that its register was more concise with a clear focus on mitigating actions.

Annual Governance Statement 2025-26

The committee reviewed the Annual Governance Statement (AGS) 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. Key areas for improvement identified included the need to strengthen company governance, particularly for the council's housing companies, and to implement the Tree Management Action Plan. The AGS also highlighted the ongoing challenges related to financial sustainability, adult social care reform, and children's social care reform. The committee discussed the wording used in relation to Ofsted reports, with members suggesting that the language used in the AGS did not fully reflect the severity of findings in the Ofsted report on SEND. The council's approach to information governance and the increasing use of Artificial Intelligence (AI) were also discussed, with concerns raised about the potential impact on demand for services and the complexity of requests.

2025/26 Annual Internal Audit and Investigation Report

Catherine Hickman, Head of Internal Audit and Investigations, presented the annual report for 2025/26. She 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 is supported by the work undertaken throughout the year and other assurance mechanisms. The report highlighted that two audits, Building Control and Tree Management, attracted a Category 3 audit opinion, indicating that risk mitigation controls were incomplete and risks were not effectively mitigated. The report also detailed anti-fraud activities, noting no instances of material fraud, irregularities, or corruption discovered during the year. The committee discussed the resourcing of the internal audit team, noting the recruitment of a new Senior Auditor and the ongoing Data Analytics Apprenticeship. The report also included the self-assessment against the Institute of Internal Auditors Global Internal Audit Standards, with an action plan in place to address identified areas for development.

Forward Programme

The committee considered the forward programme for the remainder of the municipal year. Key items for the next meeting in September 2026 include 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 Statement of Accounts for 2025/26.