The Audit Committee of Doncaster Council met on Wednesday 22 July 2026 to review a range of financial and governance reports. Key discussions were scheduled to include the annual reports of the Head of Internal Audit and the Audit Committee itself, the unaudited statement of accounts for 2025/26, and strategic risk deep dives into the cost of residential placements for children and the Dedicated Schools Grant.

Audit Committee Action Log

The committee was scheduled to review the Audit Committee Action Log, which details agreed actions from previous meetings and their progress. The log indicated that seven actions had been completed and two remained outstanding. This update allows members to monitor progress and ensure satisfactory progress is being made on agreed actions, contributing to openness, transparency, and accountability.

Covert Surveillance - Regulation of Investigatory Powers Act 2000 (RIPA) Annual Report

A report was scheduled to be presented on the Council's use of covert surveillance under the Regulation of Investigatory Powers Act 2000 (RIPA). This power is used for detecting and preventing crime, particularly by Trading Standards for test purchases of illicit products. The report was expected to note that two surveillance applications had been authorised since the last report in July 2025, both approved by a District Judge and involving test purchases of illicit products. No changes were proposed to the Council's RIPA policy and procedure, and an online RIPA training course was available to all staff and councillors.

Audit Committee Prospectus, Terms of Reference and Work Programme 2026/27

The committee was due to consider the Audit Committee Prospectus, which outlines the scope and standards applicable to the committee, and how these, along with the Terms of Reference, enable compliance with local government audit committee standards. The report included a draft work programme demonstrating how the committee would fulfil its Terms of Reference for the year, along with an indicative programme of training and awareness sessions for members. The Terms of Reference had been updated to reflect new Global Internal Audit Standards for the UK public sector.

Annual Report of the Head of Internal Audit 2025/26

The Head of Internal Audit's annual report for 2025/26 was scheduled for discussion. This report provides information on the work of Internal Audit during the year and the Head of Internal Audit's opinion on the adequacy and effectiveness of the Council's governance, risk management, and control arrangements. The report noted that while the Council's arrangements for 2025/26 were considered adequate and operated effectively, there was a noted vulnerability in maintaining this opinion for the 2026/27 year due to serious concerns regarding governance matters and financial sustainability. The report was to be revisited following further consideration by the Head of Internal Audit, particularly regarding paragraph 3 of the report and issues raised during a previous meeting.

Audit Committee Annual Report 2025/26

The committee was scheduled to approve the draft Audit Committee Annual Report for 2025/26. This report demonstrates how the committee has fulfilled its terms of reference and shares its achievements with the wider Council, in line with best practice. The report details the committee's work in relation to Internal Audit, External Audit, Regulatory Framework and Ethical Governance, Statement of Accounts, and Risk Management. It also outlines training and development sessions provided to members.

Internal Audit Progress Report for the period: April – June 2026

This report was to update the Audit Committee on the work undertaken by Internal Audit during the first quarter of the financial year. It covered the status of the Internal Audit Plan, audit work completed, the implementation of management actions arising from audit recommendations, Internal Audit performance, and compliance with Global Internal Audit Standards. The report noted two limited assurance opinions issued during the period: one on IR35 Compliance Audit and another on Property Acquisitions Audit.

Unaudited Statement of Accounts 2025/26

The committee was presented with the Council's unaudited Statement of Accounts for the 2025/26 financial year. This report highlights the overall financial position, a summary accounts closure timetable, and information on performance, including improvements in accuracy and quality. The accounts are prepared in accordance with International Financial Reporting Standards (IFRS) and are subject to external audit by Grant Thornton. The report noted a balanced revenue outturn position for the year, with a net overspend of £1.2m funded from earmarked reserves. The capital programme outturn was £158.2m, representing 69% of the budget.

Strategic Risk Deep Dives – Cost of Residential Placement outside the Authority and Dedicated Schools Grant

Two strategic risks were scheduled for deep-dive review: the cost of residential placements for children in care outside the authority, and the management of the Dedicated Schools Grant (DSG) High Needs Block.

For the Cost of Residential Placement outside the Authority, the risk was described as the cost significantly exceeding budget forecasts due to higher numbers of young people in external residential provision or higher per-placement costs. The report highlighted national challenges in sourcing placements, particularly for children with complex needs. Mitigating actions included investing in preventative services, increasing internal fostering and residential provision, and strengthening relationships with external providers. The current risk score was assessed as high, with a target risk score of medium.

Regarding the Dedicated Schools Grant (DSG) High Needs Block, the risk was identified as the failure to effectively manage the grant negatively impacting the quality, sufficiency, and sustainability of services for children and young people with Special Educational Needs and Disabilities (SEND). Key drivers included sustained growth in EHCP demand, increasing complexity of need, and a lack of local specialist capacity leading to reliance on high-cost independent and out-of-area placements. The report noted national SEND reforms and government funding announcements, including the High Needs Stability Grant, which aims to cover 90% of eligible historic DSG deficits. While the risk was assessed as medium, with improving controls, the financial pressures remained significant in the short to medium term. Mitigation actions included strengthening financial and strategic planning, taking a proactive locality approach, and improving quality, efficiency, and outcomes.