The IJB Audit Committee met on Wednesday 17 June 2026 to review the Aberdeenshire Health & Social Care Partnership's risk management, internal audit reports, and the external audit plan. The committee noted progress in risk management and internal audit findings, with a generally positive outlook on the IJB's governance and control framework for the past year.

Aberdeenshire HSCP Risk & Assurance Group Update

The committee received an update on the work of the Aberdeenshire HSCP Risk & Assurance Group. Significant progress has been made in reviewing and rationalising the risk register, reducing the number of identified risks from 84 to 51. New risk registers have been created to align with the planned HSCP leadership and management restructure. All Very High and High risks were reviewed in April and May 2026, with updated templates ensuring clearer identification of target risk levels, management strategies, and mitigations. Oversight of internal and external audit recommendations was also discussed, with assurance provided that audit actions are progressing broadly in line with agreed timescales.

Internal Audit Update Report

Jamie Dale, Chief Internal Auditor, presented an update on the progress of the internal audit plan for 2025/26. The plan was finalised, and work on current year audits was well advanced. Management has been actively working to close outstanding audit recommendations, with one recommendation from the Workforce Planning audit being closed by management and confirmed by Internal Audit. The committee noted the progress of the Internal Audit Plan and the progress made by management in implementing agreed recommendations.

Internal Audit Reports

Two internal audit reports were presented:

• Care Home Governance: This audit assessed the arrangements for central oversight of care homes. The net risk was assessed as Moderate, providing Reasonable assurance. Areas for enhancement were identified in strategic planning, structure and risk management, and resource and performance management. Management acknowledged these findings and committed to progressing further improvements.
• IJB Governance and Controls: This audit provided Reasonable assurance over the IJB's governance arrangements and framework of control. While assurance was obtained over most areas, further work is required to reinforce or improve assurance in areas such as the governance framework, risk management, performance reporting, financial management and sustainability, budget monitoring, asset and resource management, and information governance. Management accepted the findings and highlighted ongoing work to strengthen these areas.

Internal Audit Annual Report 2025/26

Jamie Dale presented the Internal Audit Annual Report for 2025/26. The Chief Internal Auditor provided an unqualified opinion, stating that the IJB had an adequate and effective framework for governance, risk management and control for the period. This was an improvement from the previous year's Limited Assurance opinion. The report highlighted improvements in budget monitoring, reporting, and financial planning, while also noting areas for continued focus, such as strengthening the link between strategy and delivery, and improving the consistency of planning and reporting. The committee noted the report, the confirmation of organisational independence of Internal Audit, the absence of limitations on its scope, and the progress made by management in implementing recommendations.

External Audit - Annual Audit Plan 2025-26

Gillian Milne, Interim Chief Finance and Business Officer, presented the external audit plan for 2025-26 from Grant Thornton. The plan outlines the approach to the audit of the financial statements and wider scope work. A significant risk identified relates to financial sustainability, with a projected funding gap of up to £237 million over the medium term. The audit plan is risk-based and aligned with the IJB's thinking. The committee discussed and noted the plan.

IJB Annual Governance Statement 2025/26

Gillian Milne presented the draft Annual Governance Statement for 2025/26. The statement reflects a year of improvement, particularly in financial governance, with stronger reporting and scrutiny. It acknowledges that further work is needed in areas such as financial sustainability, strengthening the link between strategy and delivery, and improving the consistency of planning and reporting. The committee considered and approved the statement, agreeing that it provides an appropriate basis for governance assurance to Aberdeenshire Council and NHS Grampian.

IJB Unaudited Annual Accounts for the year to 31 March 2026

Gillian Milne presented the unaudited annual accounts for 2025/26. The accounts show a surplus position for the year and the establishment of a small general fund reserve, a significant shift from the previous year. However, the report highlights that financial challenges remain significant, particularly concerning demand, workforce, and the need for continued service redesign. The committee considered the accounts and agreed they could be passed for external audit.

Update from Audit Scotland Publications

Gillian Milne provided an update on recent Audit Scotland publications. The recurring theme from these reports is the widespread financial sustainability challenges faced by Integration Joint Boards across Scotland. The committee noted the findings from the reports, recognising their relevance to the IJB's ongoing scrutiny of financial sustainability, performance, governance, and service redesign.

The meeting concluded with the committee noting the comprehensive discussions and actions taken throughout the day.