The Audit Committee of Aberdeenshire Council met on Thursday 10 September 2026 to review a range of internal and external audit reports, discuss the council's corporate improvement plans, and consider the forward planner for future committee business. The meeting's agenda focused on ensuring robust governance, risk management, and financial control across the council's operations.

Public Sector Equality Duty

The committee was scheduled to consider its duty under Section 149 of the Equality Act 2010. This involves having due regard to the need to eliminate discrimination, harassment, and victimisation; advance equality of opportunity between those who share a protected characteristic and those who do not; and foster good relations between those who share a protected characteristic and those who do not. Where an Integrated Impact Assessment (IIA) was provided, the committee was to consider its contents and take them into account when reaching a decision.

Exempt Information

The committee was scheduled to consider a resolution to exclude the public and media representatives from the meeting for Item 14 of business. This was on the grounds that it involved the likely disclosure of exempt information as described in the Local Government (Scotland) Act 1973.

Minute of Audit Committee Meeting of 2 July 2026

The committee was scheduled to review and approve the minutes from its previous meeting held on 2 July 2026.

Statement of Outstanding Business

A statement of outstanding business was to be presented, providing an update on the progress of all outstanding actions arising from previous meetings.

Internal Audit Update Report

An update report from the Chief Internal Auditor was scheduled for discussion. This report was intended to provide the committee with an overview of Internal Audit's work since the last update, detailing progress against the approved Internal Audit Plan, the status of audit recommendations follow-up, and other relevant matters. Six audits had been finalised, and 15 audit recommendations had been closed, with 25 progressing for future follow-up.

Internal Audit Reports

The committee was scheduled to review several internal audit reports that had been finalised. These included:

• 2623 Energy Cost Management (2025/26): This audit provided reasonable assurance over the Council's approach to managing energy costs, identifying moderate risks. Areas for improvement included governance, policies, roles and responsibilities, recharges, contracts, utilisation, monitoring, and reduction/cost savings. Recommendations were made to the Property & Facilities Management service.
• 2628 Transformation Programme (2025/26): This audit provided reasonable assurance over the Council's approach to its Transformation Programme, identifying moderate risks. It noted progress in strengthening the foundations for transformation but highlighted opportunities to improve governance, financial sustainability and savings delivery, risk management, workforce planning, partnership working, and Policy Committee and Full Council oversight.
• 2701 Housing Repairs Year End Stock Count (2026/27): This audit provided reasonable assurance over Housing Repairs Year-end Stocks, identifying moderate risks. Recommendations focused on developing a stock management strategy and operational procedures, reviewing errors in stock counts and adjustments, and improving management action plans.
• 2703 Committee Services (2026/27): This audit provided substantial assurance over Committee Services, identifying only minor risks. It highlighted the service's professionalism and responsiveness, with limited opportunities for improvement identified. A moderate risk was noted regarding Disclosure Scotland Protection of Vulnerable Groups (PVG) Scheme membership for elected members serving on relevant committees.
• 2710 ECS Procurement (2026/27): This audit provided limited assurance over Education and Children's Services (ECS) goods and services procurement, identifying major risks. Significant weaknesses were found in governance, oversight, procurement planning, approval arrangements, procurement routes, transparency, record keeping, and contract management.
• 2705 Alcohol and Drugs Partnership (2026/27): This audit provided limited assurance over the Alcohol and Drugs Partnership's (ADP) governance and working arrangements, identifying major risks. Recurring themes included issues with the governance structure, funding flows, grant compliance, budget monitoring, commissioning, grant funding, performance outcomes, data quality, reporting, risk management, and partnership working.

2025-26 Internal Audit Annual Report - Aberdeenshire Council

The committee was scheduled to review the Internal Audit Annual Report for 2025/26, which included the Chief Internal Auditor's opinion on the adequacy and effectiveness of the Council's framework for governance, risk management, and control. The overall opinion was that the Council had an adequate and effective framework. The report detailed recurring themes such as record keeping, documentation, reliance on manual processes, financial control risks, and operational delivery challenges. It also highlighted areas for future audit focus, including governance, risk and assurance, financial management, procurement, workforce planning, and digital transformation.

Audit Committee Forward Planner 2026-27 Update

An update to the Audit Committee Forward Planning Timetable for 2026-27 was to be presented, outlining when reports would be presented to the committee. This included scheduled discussions on internal and external audit reports, the Corporate Improvement Plan, and the Best Value Thematic Report on Asset Management.

Audit Committee PSIF Self-Evaluation Report and Improvement Plan 2026

The committee was scheduled to consider the Public Service Improvement Framework (PSIF) self-evaluation report for 2026. This report, based on a self-assessment conducted between February and March 2026, indicated positive findings with an average of 84.75% agreement across statements. Strengths included effective chairing, comprehensive annual reporting, and engagement with officers on risks and audit findings. Areas for improvement included the committee's establishment in accordance with CIPFA guidance, understanding of its role across the council, and the frequency of private meetings with auditors. An improvement plan with ten proposed actions was to be reviewed.

Corporate Improvement Plan - Bi-Annual Update

A bi-annual update on the Corporate Improvement Plan was scheduled. This report provided updates on the Best Value Workforce Planning Action Plan 2023/24, the Council Wide Public Service Improvement Framework (PSIF) Transformation Action Plan 2024/2025, and the Best Value Transformation Action Plan 2024/2025. All actions from the Workforce Planning plan were completed. The PSIF Transformation Action Plan had three outstanding actions completed by June 2026. The Best Value Transformation Action Plan had one overdue action regarding RAG rating criteria, with a proposed new completion date of January 2027.

Best Value Audit Report & Action Plan

The committee was to consider proposed actions identified in the Best Value Accounts Commission audit report to address transformation expectations. These actions were recommended for inclusion in the Corporate Improvement Plan. The report noted that the transformation programme had progressed quickly since the Best Value report was published, with several actions already completed.

External Audit - Sector Update Report

A progress report and sector update from the external auditor, Grant Thornton UK LLP, was to be presented. This report indicated that the 2025/26 external audit remained on schedule, with fieldwork commenced and findings expected in October 2026. Key sector messages highlighted recurring themes such as financial sustainability, increasing service demand, the need for transformation, workforce challenges, asset management, and maintaining robust governance.

External Audit - 2025/26 Best Value Thematic Report - Asset Management

The committee was scheduled to review the external auditor's Best Value Thematic Report for 2025/26, focusing on Asset Management. The report assessed how well the council manages its assets to achieve corporate objectives and respond to challenges around financial sustainability and climate change. The report concluded that while the council has a clear asset management strategy and plans aligned with corporate objectives, implementation needs focus. Governance arrangements support effective asset management, but reporting on refreshed actions needs ongoing attention. The council demonstrates a strong approach to partnership working and community engagement in asset management. Recommendations for improvement were to be presented in an accompanying Improvement Plan.

The meeting was scheduled to cover a comprehensive agenda, with a strong emphasis on internal and external audit findings, the council's progress on improvement plans, and strategic financial and operational management. The status of the meeting was PENDINGCOUNCILPUBLICATION, meaning that while the agenda and supporting documents were available, confirmation of the meeting having taken place and any actual discussions or decisions made were not yet publicly available.