The Audit Committee of Tendring Council met on Thursday, 25 June 2026, to review a range of financial and governance matters. Key discussions were scheduled to include the external auditor's plan and strategy for the upcoming year, a report on internal audit activities, and the council's corporate approach to risk management.

External Auditor's Draft Audit Plan and Strategy 2025/26

The committee was scheduled to consider the External Auditor's Draft Audit Plan and Strategy for the year ending 31 March 2026. This plan outlines the audit work intended to inform the auditor's opinion on the Council's 2025/26 Financial Statements and its use of resources. The report highlighted that the plan is set against key elements including materiality and risk, and also considers the ongoing rebuilding assurance approach and associated risks. The external auditors, KPMG LLP, were expected to present their approach, which includes assessing significant risks such as the valuation of land and buildings, post-retirement benefit obligations, and the potential for management override of controls. The audit plan also detailed the approach to Value for Money assessments, focusing on financial sustainability, governance, and improving economy, efficiency, and effectiveness. The estimated audit fee for this work was noted as being between £63,000 and £75,000, with the statutory audit element totalling £182,000, expected to be met from existing budgets.

Report on Internal Audit

A periodic report on the Internal Audit function for the period March 2026 to May 2026 was presented, alongside the Head of Internal Audit's Annual Report for 2025/26. The report indicated that a satisfactory level of work had been completed on the 2025/26 Internal Audit Plan, enabling the Internal Audit Manager to provide an opinion in the Annual Head of Internal Audit Report. Eight audits had been completed since the previous update, all receiving satisfactory opinions of 'Adequate' or 'Substantial' Assurance. The Head of Internal Audit's Annual Report concluded with an unqualified opinion of 'Adequate Assurance', noting that while work had been delivered in accordance with the Global Internal Audit Standards, full conformance could not be confirmed until the required External Quality Assessment was completed. Four audits within the 2026/27 Internal Audit Plan were reported to be in fieldwork.

Corporate Approach to Risk Management

The committee was presented with a proposed revised approach to the Council's Corporate Risk Register, intended to form part of its wider assurance framework. This revised approach aims to provide a more coherent linkage to other relevant elements and activities within the Council, adopting a 'hybrid' style that maintains a traditional risk register within an assurance and governance foundation. The report also provided an update on the existing Corporate Risk Register, which at the time of the report, listed 23 risks, with 4 rated as 'Red' (residual) and 19 as 'Amber' (residual). Key 'Red' risks highlighted included ineffective cyber security, coastal defence, financial strategy, and the loss of sensitive or personal data. The report noted that the proposed revised approach would be further developed for finalisation and presentation to the Committee in September.

Annual Letter from the Local Government and Social Care Ombudsman

The committee received the most recent annual letter from the Local Government and Social Care Ombudsman (LGSCO) for the financial year 2025/26. This letter summarises the number of complaints received by the LGSCO concerning the Council, the services they related to, and the decisions reached. For 2025/26, only one of the 22 determined complaints was upheld, relating to a homelessness case where a family was placed in temporary accommodation for longer than the statutory period. The report also noted that the Housing Ombudsman had made seven recommendations regarding the Council's Corporate and Housing Complaints Policy, which were being actioned to ensure compliance with the Housing Ombudsman's Code for complaint handling.

Table of Outstanding Issues

The committee received an update on outstanding actions identified by the committee, along with general updates on other issues within its responsibilities. This included updates against general items, the 2023/24 Annual Governance Statement Action Plan, and recommendations from the External Auditor. No significant issues were reported, with work remaining in progress or updates provided elsewhere on the agenda. The report also included the Council's revised Procurement Procedure Rules, developed through the Essex Procurement Partnership, for the committee's consideration. These new rules, adopted by Full Council on 2 June 2026, replace the previous rules and aim to deliver value for money, drive economic growth, enhance social value, support net zero goals, improve supplier access, and foster commercial capability. The report also detailed the process for exemptions from these rules and provided an updated Contracts Register. Finally, updates were provided on the Council's Whistleblowing Policy, with three notifications logged since the last meeting.