The IJB Audit Committee reviewed the audited annual accounts for the year ending 31 March 2026, noting an unmodified audit opinion from Grant Thornton. The committee also reviewed an internal audit report on the Aberdeenshire Alcohol and Drugs Partnership, which highlighted significant weaknesses in governance and financial compliance, and discussed the Aberdeenshire Health & Social Care Partnership's Risk Assurance Group update.

Audited Annual Accounts for the Year to 31 March 2026 and External Auditor's Report

The committee reviewed the audited annual accounts for the year ending 31 March 2026. The external auditor, Grant Thornton, issued an unmodified audit opinion, confirming that the financial statements provide a true and fair view of the Integration Joint Board's (IJB) financial position. The committee noted the external auditor's report, which included conclusions on the financial statements audit and wider scope audit areas. An action plan was to address recommendations made by the auditor, with progress to be reported in February 2027.

Internal Audit Reports: Aberdeenshire Alcohol and Drugs Partnership

An internal audit report on the Aberdeenshire Alcohol and Drugs Partnership (ADP) identified significant weaknesses in governance, financial assurance, performance reporting, and accountability, resulting in a Limited assurance assessment and a Major net risk rating. Key concerns included a lack of transparency in funding flows, particularly a £642,249 top-slice retained by NHS Grampian which was not clearly linked to ADP priorities, and inconsistencies in budget monitoring. The audit also highlighted weaknesses in commissioning, grant funding, performance outcome reporting, and risk management. Despite previous audits identifying similar issues, many underlying risks remain. The report recommended a broader strategic review of the ADP's control environment.

Management accepted the findings, acknowledging the need for improvement and committing to a clear action plan with named leads and milestones. They highlighted that the ADP has refreshed its governance structures and leadership, and is working to improve transparency over funding flows. However, the issue of the NHS Grampian top-slice remains a point of contention, with NHS Grampian stating that reversing the arrangement would require finding £2 million in savings from other services. The committee debated whether to escalate the matter to the full IJB, and it was agreed that a paper outlining the action plan and its progress would be presented at a future IJB meeting.

Aberdeenshire Health & Social Care Partnership (AHSCP) Risk Assurance Group Update

Shona Campbell, Strategy and Transformation Manager, presented an update on the work of the AHSCP Risk Assurance Group. The committee noted the current risk register and the overall strategic risk profile, seeking assurance that arrangements are in place for the oversight, identification, review, control, and mitigation of strategic risks. The group also oversees the response to internal audit recommendations. The updated AHSCP Risk Management Procedure, approved in August 2026, was acknowledged as evidence of current guidance.

During the discussion, Dr Colette Backwell raised concerns about the review dates for some red risks on the register, noting they were not being reviewed within the suggested timeframe. Shona Campbell explained that risk oversight is a shared responsibility and that the group prioritises reviewing very high risks first. It was noted that future reports would indicate which risks are owned by the Risk Assurance Group (RAG) and which by the Clinical and Adult Social Work Governance Group (CASWIG) to improve clarity. Leigh Jolly, Chief Officer, confirmed that a group under CASWIG is scheduled to meet to begin reviewing very high risks. Councillor Moray Grant noted a potential issue with a risk owner listed who may no longer be an officer and suggested checks and changes might be needed. The committee noted the report and sought assurance on the arrangements in place.

Aberdeenshire Health & Social Care Partnership (AHSCP) Workforce Planning – Internal Audit Assurance Review Update

Shona Campbell also provided an update on the internal audit review of workforce planning within the AHSCP. The original audit had returned a Limited assurance assessment and a Major net risk rating. Since then, significant work has been undertaken to address the audit recommendations, with six out of seven now closed. The remaining recommendation relates to the implementation and consistent use of recognised staffing assessment tools. The committee sought assurance that this final recommendation would be completed, evidenced, and reported through the agreed governance route. The establishment of a Workforce Monitoring & Assurance Group was noted as a key control to strengthen oversight of workforce risks. The committee acknowledged the progress made, noting it as a positive example of the team's work in addressing audit findings.

IJB Counter Fraud Framework

Gillian Milne, Interim Chief Finance and Business Officer, presented the IJB Counter Fraud Framework for approval. The framework outlines how the IJB will obtain assurance on counter-fraud arrangements for delegated services from Aberdeenshire Council and NHS Grampian, as the IJB does not operate its own counter-fraud function. The committee noted the framework's proportionate approach and it was agreed that the Chief Finance and Business Officer would seek annual counter-fraud assurance from the partners. Annual assurance reporting will be presented to the IJB Audit Committee. Councillor Moray Grant inquired about the nature of reporting from NHS Grampian, given previous internal audit issues, and was assured that reports would confirm any fraudulent activity and provide an overview for the committee's awareness.

Internal Audit Update Report

Jamie Dale, Chief Internal Auditor, provided an update on the progress of the internal audit plan and the follow-up of recommendations. He reported that work is underway for the 2026/27 audits and that management is progressing with closing outstanding recommendations. A positive development noted was the engagement with the NHS Grampian internal audit team, which has resulted in agreed actions around planning, report sharing, and committee attendance. The committee commented on the progress of the Internal Audit Plan and management's implementation of recommendations.

The meeting also included the confirmation of minutes from the previous meeting, a review of the action log, and a discussion on the public sector equality duty. The committee noted that the action log was on track for all items.