The Audit Committee of Bath and North East Somerset Council met on Wednesday 23 September 2026. The meeting was scheduled to discuss the Audit Findings Report for the Council and the Avon Pension Fund, the Audited Statement of Accounts for 2025/26, the External Audit Annual Audit Report, and the annual accounts for the Council company Aequus (ADL, ACL & AGHL). Additionally, the Committee was set to review the Treasury Management Outturn for 2025/26, receive an update on Internal Audit's planned work for 2026/27, and consider the Audit Committee's Annual Report and Workplan.

Audit Findings Report for Council & Avon Pension Fund and Audited Statement of Accounts 2025/26

The Audit Committee was scheduled to receive the Audit Findings Report for the Council and the Avon Pension Fund, along with the Audited Statement of Accounts for 2025/26. This report summarises the results of Grant Thornton's audit of the financial statements for the year ended 31 March 2026. It includes issues arising from the audit of the financial statements and those formally required to be reported to those charged with governance. The report also covers the Annual Governance Statement, which is a declaration of assurance aiming to report on the reliability of the Council's controls in safeguarding resources and ensuring they are used to meet priorities and service objectives. The Audit Findings Report for the Council indicated that Grant Thornton was proposing to issue an audit report including an unmodified audit opinion on the Council's 2025/26 Financial Statements. Similarly, for the Avon Pension Fund, Grant Thornton was proposing to issue an audit report including an unmodified audit opinion on the Pension Fund's 2025/26 Financial Statements. The report also highlighted two 'significant' issues within the Annual Governance Statement: Financial Challenge Service Demand and Cost Pressures, and Children Services Dedicated Schools Grant Deficit & the Safety Valve Agreement.

External Audit Annual Audit Report

The Committee was scheduled to receive the External Audit Annual Audit Report. This report typically provides commentary on the Council's arrangements for securing economy, efficiency, and effectiveness in its use of resources, often referred to as Value for Money (VfM) arrangements. The report is expected to cover three key areas: financial sustainability, governance, and improving economy, efficiency, and effectiveness. The external auditors, Grant Thornton, were expected to provide their assessment of these arrangements.

Council Company Aequus (ADL, ACL & AGHL) Annual Accounts 2025/26

The Committee was scheduled to review the annual accounts for the Council's wholly-owned companies: Aequus Developments Ltd (ADL), Aequus Construction Ltd (ACL), and Aequus Group Holdings Limited (AGHL) for the financial year 2025/26. ADL, a property investment and rental company, reported a turnover of £1,802,869 and a profit before tax of £14,569. ACL, a housing development and construction company, achieved a turnover of £5,144,019 and reported a net loss of £204,942. AGHL, a non-trading holding company, reported a net profit before tax of £681,000. The report noted that total returns to the Council from Aequus companies exceeded £6m.

Treasury Management Outturn 2025/26

The Committee was scheduled to review the Treasury Management Outturn for 2025/26. This report details the Council's performance against its Treasury Management Strategy and Prudential Indicators for the financial year. It was noted that the Council ended the year with total borrowing of £288.977m and total investments of £31.300m. All Prudential Indicators were reported to be within target levels. The average rate of return on operational investments was 4.03%, exceeding the 7 Day SONIA benchmark rate. Strategic investments earned 4.18%, slightly below the budgeted return of 4.25%. The report also highlighted that the Council's revenue budget outturn for interest and capital financing costs was £2.087m under budget.

Internal Audit Update Report (Planned Work 2026/27)

An update on the Internal Audit Service's planned work for 2026/27 was scheduled for discussion. This report provides an overview of the progress in delivering the annual assurance plan and summarises fraud prevention activities and any unplanned work undertaken. The update indicated that work on the 2026/27 planned programme was well underway, with one audit report issued that provided 'Limited Assurance' concerning the review of debt management, specifically staff overpayments. An unplanned audit on Registration Services Income was completed, awarding a 'Substantial Assurance' opinion. The National Fraud Initiative exercise for 2026/27 had also commenced.

Audit Committee Annual Report

The Committee was scheduled to review and approve its Annual Report for 2025/26. This report details the Committee's activities and effectiveness throughout the year and outlines the proposed work programme for the following year. The report is a key component of the Council's governance framework, providing assurance on risk management, internal control, and financial reporting processes. The report was intended to be presented to the Full Council in November.

Audit Committee Workplan

The Committee was also scheduled to review its draft Workplan for 2026/27. This plan outlines the Committee's planned activities for the upcoming year, ensuring alignment with its terms of reference and the Council's governance objectives. Members were invited to provide comments and propose amendments to the draft plan.