The Performance and Audit Scrutiny Committee of West Suffolk Council met on Thursday 4 June 2026 to review the council's financial performance, audit plans, and internal audit reports. Key decisions included noting the 2025 to 2026 year-end financial outturn, which showed a surplus, and approving the audit plan and fees for the upcoming financial year.

Ernst & Young Auditor's Annual Report 2024/2025

The committee received an update on the outcome of the annual external audit of the 2024/2025 financial statements by Ernst & Young (EY). The audit resulted in a qualified opinion, noting a lack of assurance over Property, Plant and Equipment valuations and the classification of reserves. EY concluded that the council had proper arrangements in place for financial sustainability, governance, and improving economy, efficiency, and effectiveness in its use of resources. No significant weaknesses were identified in these areas.

Ernst & Young Presentation of External Audit Plan and Fees 2025/2026

Ernst & Young (EY) presented their audit plan and proposed fees for the 2025/2026 financial year. The plan outlined EY's approach to auditing the council's financial statements and assessing its value for money arrangements. Key audit risks identified included the presumptive risk of management override of controls, fraud in revenue and expenditure recognition, and the valuation of the council's solar farm asset. The committee was asked to confirm their understanding of, and agreement to, the materiality and reporting levels set by EY. The proposed audit fee was £222,242.

Internal Audit Annual Report 2025 to 2026

The committee received the Internal Audit Annual Report for 2025 to 2026, which included an annual audit opinion on the council's framework of risk management, control, and governance processes. The report concluded that governance arrangements remain robust, with a good assurance opinion. Risk management also received a good assurance opinion, with no change from the previous year. Internal control received a reasonable assurance opinion, with some significant issues identified, and financial control maintained a good assurance opinion. The report detailed the work undertaken by internal audit, including audits of main financial systems, corporate and business areas, and follow-up reviews.

Outline Audit Plan 2026 to 2027 and Internal Audit Delivery and Development Strategy

The committee was presented with the Outline Internal Audit Plan for 2026 to 2027 and the refreshed Internal Audit Delivery and Development Strategy for 2026 to 2028. The audit plan is risk-based and flexible, designed to focus resources on activities that support the council's objectives. The strategy includes an initiative to work with Suffolk local authorities on transitioning internal audit to new governance structures arising from local government reorganisation. The committee was asked to approve both documents.

2025 to 2026 Performance Report Quarter 4

The committee reviewed the quarter 4 performance and year-end financial outturn for 2025 to 2026. The report indicated a surplus position of £506,000 for the General Fund, increasing the balance to £6.13 million. The report also detailed performance against key performance indicators (KPIs) across various service areas, including housing, resources, governance, and operations. Significant variances in income streams were noted, with planning fees and solar farm income exceeding budget, while office rental income was lower than anticipated. The capital programme showed underspends in some areas, with proposed budget carry forwards into the next financial year.

Health and Safety Summary Report 2025/2026

The Health and Safety Summary Report for 2025/2026 was presented, highlighting that total staff accidents and incidents remained broadly in line with the previous year, with a slight reduction in physical injury accidents. The accident frequency rate fell, indicating a modest improvement. RIDDOR reportable incidents remained consistent, with six work-related injuries and one public-related incident. Days lost due to incidents and accidents had reduced but remained elevated compared to previous years. Near miss and safety observation reporting levels remained positive, contributing to service improvements. The report also detailed the council's drug and alcohol testing, occupational health appointments, and wellbeing initiatives.

Annual Appointments to the Financial Resilience Sub-Committee 2026/2027

The committee was asked to appoint three Members and one substitute Member from its own membership to the Financial Resilience Sub-Committee for the 2026/2027 year. The proposed allocation aimed to reflect the political balance of the committee as far as practically possible. The terms of reference for the Financial Resilience Sub-Committee were also attached, outlining its role in scrutinising the council's financial resilience, treasury management, and capital financing.

Performance and Audit Scrutiny Committee Work Programme 2026/2027

The committee noted the current status of its work programme for 2026/2027. This included planned reviews of the medium-term budget, annual treasury management and financial resilience reports, the external auditor's annual results report, and the internal audit annual report. The work programme also included standing items such as performance reports and the review of the council's work programme.