The Audit Committee of Durham County Council was scheduled to meet on Tuesday 30 June 2026 to review a range of financial and operational reports. Discussions were anticipated to cover the progress of the Oracle Fusion Programme, health, safety and wellbeing performance, treasury management outturn, and the annual review and opinion of the Internal Audit Service.

Oracle Fusion Programme Progress Update

The committee was expected to receive an update on the progress of the Oracle Fusion Programme, which aims to implement a new enterprise resource planning system for the council. Information suggested the programme had formally kicked off in January 2026, following the selection of Mastek as the systems implementation partner and the approval of a £14.736 million budget by Cabinet. The programme was reportedly in its design stage, with the first round of conference room pilot workshops completed. However, challenges with data migration, particularly concerning HR/Payroll files, were noted as causing delays. A revised programme plan was anticipated to be presented to the Oracle Fusion Programme Board on 24 June 2026, with an estimated delay of approximately eight weeks. Key risks identified included potential misalignment of HR and Finance structures, possible delays to cloud migration, and difficulties in finalising to-be processes. Potential change impacts on user capabilities, operational models, process standardisation, and data handling were also outlined.

Health, Safety and Wellbeing Performance Report

The committee was expected to be updated on the council's health, safety, and wellbeing performance for the fourth quarter of the 2025/2026 financial year. Reports indicated an increase in reported accidents, incidents, and near misses compared to previous quarters, with a total of 1,911 reports for the year. There were two RIDDOR-specified injuries and three incidents resulting in over seven-day absences. Four fire-related incidents were reported, none of which resulted in injuries or damage to property. The report noted a 94% compliance rate from 115 risk-based health and safety and fire safety audits and inspections, with 87% of audit actions completed within timescales. A visit from the Health and Safety Executive (HSE) regarding asbestos management in non-domestic premises was also detailed. While the inspector was reportedly satisfied with the management of asbestos at most inspected sites, a notification of contravention was issued for an issue identified at Spennymoor Leisure Centre concerning historic damage to asbestos-containing cement panels.

Treasury Management Outturn Report

The committee was scheduled to consider the Treasury Management Outturn Report for the 2025/2026 financial year. This report was intended to provide a summary of the council's treasury position, borrowing and investment activities, and performance against treasury management and prudential indicators. As of 31 March 2026, the council reportedly held £481.210 million in external borrowing and £82.987 million in cash investments, resulting in a net debt of £398.223 million. New borrowing totalling £60 million was undertaken from the Public Works Loan Board (PWLB) during the year. The report was expected to indicate full compliance with the council's Treasury Management Strategy and the statutory Prudential Code indicators. The average interest rate paid on external loans was reported to remain at 3.31%, while the average interest earned on investments decreased to 3.87% from 4.44% in the previous year, reflecting a reduction in the Bank of England base rate.

Annual Review of the Internal Audit Service

The committee was expected to review the annual effectiveness of the Internal Audit Service for 2025/2026. The review was to assess the structure, resourcing, qualifications, and experience of the audit team, as well as conformance with the Global Internal Audit Standards (GIAS). The self-assessment indicated that the service generally conforms with GIAS, and a Quality Improvement and Assurance Programme (QIAP) has been developed for the upcoming year. The report noted that an external assessment is due in 2027. The Internal Audit Plan for 2025/26 was considered to have been reasonably constructed, though flexibility was acknowledged as necessary to address emerging risks. Performance indicators suggested that while productive audit time was below target due to recruitment and retention challenges, other efficiency and quality indicators were met. The Chief Internal Auditor was expected to issue an opinion on the adequacy of the council's governance, risk management, and internal control framework.

Annual Internal Audit Opinion and Report

Following the review of the Internal Audit Service, the committee was expected to consider the Chief Internal Auditor and Corporate Fraud Manager's annual assurance opinion on the council's governance, risk management, and internal control framework for 2025/26. This opinion, based on the work undertaken throughout the year, was expected to provide a Moderate Assurance rating. This rating would indicate that while a generally sound system of internal control exists, there are some weaknesses in the design and/or operating effectiveness of controls that expose the council to risks requiring management action. The report was expected to highlight an increase in Limited assurance opinions issued compared to the previous year, with eight such opinions relating to areas such as High Needs Top Up Funding Arrangements in Schools, Contract Monitoring Arrangements for Independent Fostering Services, and Contract Management Arrangements within Corporate Property and Land. The report was expected to acknowledge the council's ongoing journey of continuous improvement in strengthening its governance arrangements and internal controls.