The Audit Committee of Doncaster Council was scheduled to discuss a range of important governance and financial oversight matters. Key topics included the annual reports from the Monitoring Officer, Head of Internal Audit, and the Audit Committee itself, alongside a review of breaches and waivers to the Council's Contract Procedural Rules. The committee was also set to consider the draft Annual Governance Statement for 2025/26, the Counter Fraud Activity Report, and the Anti-Fraud, Bribery and Corruption Framework. Furthermore, the Internal Audit Charter, Strategy, and Plan for 2026/27 were on the agenda, as was the External Auditor's Audit Plan for 2025/26.

Annual Report of the Monitoring Officer and Whistleblowing and Standards Report 2025/26

The committee was scheduled to receive the Annual Report of the Monitoring Officer, Scott Fawcus, which covers matters relating to ethical governance. This report was expected to detail complaint handling activity concerning allegations of Member misconduct, disclosures made under the Council's Whistleblowing Policy during the 2025/26 period, and any reports made under the Money Laundering Policy. The report recommended that the committee note the complaint handling activity, the whistleblowing return, and the nil money laundering reports for 2025/26. It also proposed agreeing to additional wording in the Council's Whistleblowing Policy concerning sexual harassment, in line with amendments to the Employment Rights Act 1996. The report highlighted an increase in complaints against Doncaster Council (CDC) Councillors compared to the previous year, with eleven complaints received, though it noted that the overall number of breaches remained very low. Similarly, eleven complaints were received against Parish and Town Councillors, with six relating to one particular Town Council. The report also detailed eight whistleblowing complaints considered by the Council during 2025/26.

Breaches and Waivers to the Council's Contract Procedural Rules

This report was set to provide details of all waivers and breaches to the Council's Contract Procedure Rules (CPRs) for the period between 1 September 2025 and 28 February 2026. The report indicated that the number of approved waivers had remained static at nine, while the number of breaches had increased from zero to three. The report noted that since 2017, there had been positive progression in compliance across the Council, with a spike in waivers in October 2020 attributed to Covid-19 emergency contracts. The committee was asked to note the waivers and breaches recorded for the period and the work undertaken by the Strategic Procurement Team to ensure continued compliance with the CPRs.

Draft Annual Governance Statement 2025/26

The committee was scheduled to review the draft Annual Governance Statement (AGS) for 2025/26. This statement is a statutory requirement under the Accounts and Audit Regulations and outlines the Council's governance compliance. The report indicated that last year's AGS included five significant governance issues, with three recommended to be carried forward into the 2025/26 statement, and two downgraded. Two new issues had also been identified, meaning the 2025/26 AGS would contain five key areas. The report highlighted that the Council is committed to delivering services openly, fairly, and responsibly, with strong governance ensuring decisions are transparent, accountable, and made in the best interests of residents. The political changes following the May 2025 elections, with a majority Reform UK group in the Council chamber and a Labour Mayor commanding executive functions, were noted as making clear processes, strong governance, and positive working relationships even more important. The report detailed the Council's approach to risk management and its assessment of the effectiveness of its governance arrangements, noting that despite changes and economic pressures, Doncaster's governance framework had remained strong and adaptable. The draft AGS identified several areas for improvement, including assurance over future financial sustainability, the impact of Special Educational Needs and Disabilities (SEND) on the Dedicated Schools Grant (DSG) and consequential financial risk, and the sufficiency of Doncaster children's placements. New significant governance issues identified for 2025/26 included the re-opening of Doncaster Airport and the development of effective governance arrangements, and broader Governance Matters relating to the conduct of Council and Committee proceedings, which had led to engagement with the Ministry of Housing, Communities and Local Government (MHCLG).

Audit Committee Annual Report 2025/26

This report was presented to allow the Audit Committee to demonstrate its fulfilment of its terms of reference and share its achievements. It was noted that the committee had worked well with external auditors Grant Thornton, receiving an unqualified opinion on the Council's Statement of Accounts for the third consecutive year. Concerns were raised regarding the Dedicated School Grant (DSG) deficit and two key recommendations were made concerning governance related to the South Yorkshire Airport City (SYAC) Programme. The Head of Internal Audit provided a positive opinion on the Council's risk, governance, and control arrangements, noting a low level of fraud and error. However, the report also highlighted an increase in new actions raised due to limited assurance opinions in two areas within the Children, Young People and Families Directorate, with several actions remaining outstanding at year-end. The committee had also considered the Audit Committee Prospectus, Terms of Reference, and Work Programme, overseen the production of the Annual Governance Statement, and received reports on compliance with Contract Procedure Rules.

Annual Report of the Head of Internal Audit 2025/26

Peter Jackson, Head of Internal Audit, was scheduled to present his annual report, providing an overall opinion on the adequacy and effectiveness of the Council's governance, risk management, and control arrangements. The report indicated that despite challenges, sufficient work had been carried out to form a positive opinion, though it noted a vulnerability in maintaining this opinion for the 2026/27 year due to serious concerns regarding governance matters and financial sustainability. The report highlighted an increase in new actions due to limited assurance opinions in two areas within the Children, Young People and Families Directorate, with several actions still outstanding. However, overall arrangements for following up on agreed management actions were considered effective. The report noted that no specific areas were identified for inclusion in the Council's Annual Governance Statement. Significant findings included Limited Assurance for Local Establishment A due to weaknesses in financial governance and oversight, and for CYPF Governance Arrangements Review due to insufficient robustness in panel functioning. The report also detailed key audit work undertaken, including reviews of the South Yorkshire Airport City (SYAC) programme, main financial systems, and schools.

Counter Fraud Activity Report 2026/27

This report was set to outline the Council's Counter Fraud Plan for 2026/27, developed in line with the Council's Anti-Fraud, Bribery and Corruption Framework and the Fighting Fraud and Corruption Strategy for the 2020s for Local Government. The report included a horizon scan for new fraud risks, an analysis of the Economic Crime and Corporate Transparency Act 2023 (ECCTA), an assessment of how the Council itself could commit fraud, and an assessment of current fraud risks. The report concluded that risks for the Council remained well controlled and proposed a schedule of work to ensure these controls remain relevant. The Counter Fraud Plan encompasses activities across both the Council and St Leger Homes.

Anti-Fraud, Bribery and Corruption Framework 2026-2029

This report presented the latest update to the Council's Anti-Fraud and Corruption Framework, which sets out the policies and strategies for combating fraud and corruption. The framework, updated every three years, now includes reference to the Economic Crime and Corporate Transparency Act 2023 and the associated Failure to Prevent Fraud offence. While the risk of the Council committing fraud was assessed as low, the framework was updated to address this and set out the Council's stance on fraud committed in its name. The framework comprises four main parts: the Anti-Fraud, Bribery and Corruption Policy, the Strategy, the Sanctions Policy, and the Fraud Response Plan. Key changes included a refresh of terminology, the inclusion of the ECCTA section, and updates to the Sanctions Policy to reflect the latest Crown Prosecution Service guidance. An update to the Anti-Money Laundering Policy was deferred pending formal approval of legislative changes.

Internal Audit Charter and Strategy

The committee was asked to approve the updated Internal Audit Charter and the Internal Audit Strategy for 2026-2029. The Charter, which defines the internal audit activity's purpose, authority, and responsibility, had been updated to reflect the requirements of the new Global Internal Audit Standards (UK Public Sector) and the Code of Practice for the Governance of Internal Audit in UK Local Government. The Internal Audit Strategy for 2026-2029 sets out the vision, strategic objectives, and initiatives of the service, including an action plan for their delivery, developed in accordance with the Global Internal Audit Standards. The strategy aims to develop agile and data-driven approaches to auditing, focus on workforce planning and professional development, and enhance the assurance framework.

Internal Audit Plan 2026/27

This report presented the Internal Audit Plan for 2026/27, produced following a review of the Council's risks and controls. The plan conforms to the Global Internal Audit Standards for the UK Public Sector. The planned internal audit resource for 2026/27 is 8.75 FTEs, with 9,301 hours allocated. The plan allows for flexibility and responsiveness to the organisation's needs, with 88% of hours dedicated to assurance, advice, consultancy, follow-up, and counter-fraud work, and 12% allocated for responsive/contingency work. The Head of Internal Audit considered this sufficient to provide an annual opinion on the authority's risk, governance, and control arrangements. The plan included audits across various directorates, focusing on areas such as Local Assistance Scheme and Household Support Fund, Contract Storage and Retention, Core Financial Processes, Property Acquisitions, and Safeguarding arrangements.

External Auditor (Grant Thornton) - Audit Plan 2025/26

Grant Thornton presented their Audit Plan for the year ending 31 March 2026. The plan outlined the scope and timing of the statutory audit, with a focus on significant risks including management override of controls, the closing valuation of land and buildings, and the valuation of the net pension fund balance. Materiality for the financial statements was set at £17.1m for the Group and £16.3m for the Council. The plan also detailed the group audit scope, including St Leger Homes of Doncaster Limited (SLHD) as a subsidiary entity. Significant weaknesses in Value for Money (VFM) arrangements were identified in relation to the Council's Dedicated Schools Grant (DSG) deficit and the governance arrangements surrounding the South Yorkshire Airport (SYAC) and Fly Doncaster Limited (FDL). The audit timeline was also presented, with planning and interim audit work commencing in February and continuing into April, followed by year-end audit work from June into the autumn, with a planned opinion issuance by 30 November 2026. The proposed audit fee was £477,329, subject to PSAA approval. The report also confirmed Grant Thornton's independence and outlined their communication plan with those charged with governance.