The Audit and Standards Committee of Warwickshire Council met on Thursday 4 June 2026 to review the external audit plans for both the Council and the Warwickshire Pension Fund, discuss the draft Annual Governance Statement, and consider the Committee's own annual report and self-assessment. Key decisions included the endorsement of the audit plans and the draft Annual Governance Statement, alongside a commitment to further training and development for the Committee.

External Audit Plan for Warwickshire County Council 2025/26

Grant Thornton presented the external audit plan for Warwickshire County Council for the financial year ending 31 March 2026. The plan outlined the significant risks identified, including management override of controls, the valuation of land and buildings, and the valuation of the gross pension fund liability. Materiality for the Council's financial statements was set at £27 million, with performance materiality at £20.25 million and triviality at £1.35 million. The audit fee was set at £314,292, with an additional £6,750 for an independent valuation expert. The plan indicated that the majority of the audit approach would be consistent with the previous year, with a focus on following up on prior year recommendations.

Councillor Yousef Dahmash, a new member of the committee, raised questions regarding the £1 million threshold for journal authorisations, the rationale behind it, and the process for authorising journals below this threshold. Management clarified that the threshold was a pragmatic approach to managing the volume of journals, and that informal review processes were in place for all journals. Assurance was provided that no instances of management override of control had been found in previous audits.

Councillor Richard Dickson inquired about the process for making written answers to questions submitted in advance publicly available. It was explained that while additional information could be circulated as a briefing, it did not form part of the formal record. The committee agreed to consider how to make such information more accessible to the public.

Discussions also covered the timeline for completing the audit, with confidence expressed in meeting the November deadline. The potential delegation of the approval of accounts to the committee was noted as a common practice in the sector to facilitate this timeline.

Councillor Dahmash also raised concerns about cybersecurity, the implementation of the cyber assessment framework, and the need for a dedicated senior role. It was clarified that while a new role would accelerate progress, significant work was already underway. Questions were also raised about the asset register and the process for removing assets that are no longer in use. Rob Powell, Executive Director for Resources, confirmed that asset registers were comprehensive and subject to audit, though acknowledged occasional issues with older, smaller heritage assets.

The significant risk associated with the Dedicated Schools Grant (DSG) deficit was discussed, with Rob Powell outlining the government's proposed High Needs Stability Grant and the council's contingency plan, which included a medium-term financial risk reserve of approximately £58 million.

External Audit Plan for Warwickshire Pension Fund 2025/26

Grant Thornton also presented the audit plan for the Warwickshire Pension Fund for the year ending 31 March 2026. Significant risks identified included management override of controls and the valuation of Level 3 investments, which are complex estimates based on unobservable inputs. Materiality for the fund's financial statements was set at £61.5 million. A specific lower materiality of £11 million was set for contributions and benefits. The audit fee was £98,995, with an additional £5,000 for testing data for the triennial actuarial valuation.

The nature of Level 3 investments was explained as being more difficult to value due to reliance on assumptions, and it was noted that the pension fund was increasingly investing in these types of assets for diversification.

Councillor Dahmash raised questions about the £5,000 additional audit fee for the triennial valuation data testing, which was explained as necessary extra testing on new data every three years. He also inquired about cybersecurity risk assessments for the pension fund and the completeness of declarations of interest. It was confirmed that the pension fund has a cybersecurity policy and had received input from an external third party, though the policy had not been audited externally. Work was underway to ensure all required declarations were made.

Draft Annual Governance Statement 2025/26

Grant Stoneman, Head of Corporate Policy and Strategy, presented the draft Annual Governance Statement (AGS) for 2025/26. The statement provides a retrospective review of the Council's governance framework and identifies areas for improvement. It was noted that the AGS would be subject to public consultation before being finalised.

Councillor Richard Dickson inquired about the inclusion of health and safety data, such as RIDDOR incidents and mandatory training completion, which was confirmed. Sandy Shergill asked about the embedding of a new risk management system and the number of open cybersecurity issues, particularly those classified as high risk. It was noted that cybersecurity would be discussed further in a private session.

Councillor Mark Stevens raised concerns about the high rate of upheld Ombudsman complaints (15 out of 17 investigated). Rob Powell provided context, stating that the national average for upheld complaints was 89%, and Warwickshire's rate was lower when adjusted for population. Sarah Duxbury, Director of Strategy Planning and Governance, noted an increase in member complaints but explained that many were filtered out early.

The committee discussed the alignment of the risk appetite with the new Council Strategic Plan and the potential inclusion of risk appetite in the AGS. It was confirmed that the new Council Plan, agreed in May 2026, would be reflected in future reporting.

Audit and Standards Committee Annual Report 2025/26

The committee reviewed its annual report for 2025/26, which summarised its activities and achievements. Members discussed the impact and achievements of the committee, with the Chair highlighting the triple green rating from external auditors as an indicator of success. Rob Powell noted that demonstrating a direct line of impact from scrutiny work could be challenging but pointed to improvements in transparency and the unqualified audit opinions as evidence of effectiveness.

Councillor Dahmash sought specific examples of how scrutiny had led to changes in officer recommendations or management decisions. While acknowledging the difficulty in pinpointing direct causality, it was suggested that management had taken points raised on board, citing increased transparency in the governance statement as an example.

Audit and Standards Committee Self-Assessment Review Summary Report

The committee reviewed the findings of its self-assessment, which indicated a strong level of confidence in its governance arrangements and assurance role. Areas for further development included skills, training, member engagement, and the depth of scrutiny in specific areas. It was proposed to repeat the self-assessment exercise every two years to monitor progress. Opportunities for further development included considering additional focus on risk management and ethics, reviewing training plans, and strengthening member engagement with senior officers.

Work Programme and Future Meeting Dates

The committee noted its work programme and future meeting dates, including upcoming sessions in July, September, and November 2026. The November meeting was highlighted as potentially being of added importance due to the potential approval of the accounts.

Minutes of the Previous Meeting

The minutes of the previous meeting held on 19 March 2026 were confirmed as an accurate record, with an amendment to include a statement about concerns regarding the growth in the number of complaints.

Any Other Business

John Cole, Senior Democratic Services Officer, was thanked for his support as he was leaving his role.

The meeting then moved into a closed session to discuss exempt information.