The Audit Committee of Durham County Council is scheduled to convene on Friday 31 July 2026. The meeting agenda includes a review of the council's financial statements and governance, specifically the 'Going Concern Status' for the Statement of Accounts for the year ending 31 March 2026, and the draft Statement of Accounts itself. The committee is also scheduled to review the draft Annual Governance Statement for 2025/2026 and receive an update on the external audit progress. The Corporate Fraud Team's annual report is also listed for discussion.

Consideration of 'Going Concern Status' for the Statement of Accounts

The committee is scheduled to review the 'Going Concern Status' for Durham County Council's Statement of Accounts for the year ending 31 March 2026. A report from the Corporate Director of Resources is expected to detail the council's financial performance assessment and its ability to continue operating as a going concern. This assessment is a requirement when preparing the annual Statement of Accounts, which must be prepared on the assumption that the council will continue in operational existence for the foreseeable future. The report is expected to outline the reasons for recommending that the council be considered a going concern, citing its robust financial position, significant general and earmarked reserves, and a balanced budget for 2026/27 with a clear medium-term financial plan.

Draft Statement of Accounts for the year ended 31 March 2026

The committee is scheduled to review the draft Statement of Accounts for the financial year ended 31 March 2026. This annual statement provides stakeholders with detailed information on how the council uses its resources, its net worth, and its overall financial health. The unaudited statement was authorised by the Corporate Director of Resources on 30 June 2026 and published on the council's website. The external review by Forvis Mazars LLP commenced on 1 July 2026, with the audit scheduled for completion in late October or early November 2026. The report is expected to highlight that the council's net worth was £1.183 billion at 31 March 2026, a decrease of £35 million from the previous year. General reserves increased to £39.688 million, and earmarked reserves, excluding those for schools, stood at £183.857 million.

Draft Annual Governance Statement 2025/2026

The committee will consider the draft Annual Governance Statement (AGS) for 2025/2026. This statement, prepared in accordance with the CIPFA/SOLACE Framework, demonstrates how the council complies with the principles of good governance and identifies areas for improvement. The review of effectiveness concludes that the council's corporate governance arrangements for 2025-26 were fit for purpose. The statement identifies eight governance improvement actions for 2026-27, including four carried forward from previous years and four new actions. Progress against these actions will be reported.

External Audit Progress Update Report 2025/2026

A verbal update on the external audit progress for 2025/2026 is scheduled to be provided by the External Auditor. The report indicates that the external auditors are on track to deliver the audit plan presented to the Audit Committee on 29 May 2026. The draft accounts were to be published on the website on 30 June 2026, and the audit is progressing as expected with no significant issues identified at this early stage. The auditors are on plan to report back to the Audit Committee on 30 November 2026.

Annual Corporate Fraud Progress Report 2025/2026

The committee will receive the Annual Corporate Fraud Progress Report for 2025/2026. This report provides an overview of the Corporate Fraud Team's activity and performance, demonstrating the council's commitment to protecting public funds and maintaining strong governance. The report highlights a zero-tolerance approach to fraud, corruption, and financial misconduct, supported by the Counter Fraud and Corruption Strategy. During 2025/26, the team identified or prevented an estimated £1.133 million of fraud, overpayments, and error. The report details a significant increase in referrals and investigations, with Council Tax fraud and Council Tax Reduction fraud being the highest volume areas. The team delivered 38 prosecutions and sanctions, exceeding performance targets. Partnership working with Registered Social Landlords also generated substantial savings. A key development was the introduction of enhanced data analytics through the Cabinet Office National Fraud Initiative Fraud Hub, strengthening the council's ability to proactively identify fraud risks. The report also notes close collaboration with Durham Constabulary and other partners to support wider public protection objectives.

Exclusion of the Public

The agenda indicates that there may be a resolution relating to the exclusion of the public during the discussion of items containing exempt or confidential information, as detailed in Part B of the agenda. This would typically involve discussions on sensitive financial or operational matters where public disclosure could be detrimental.