The Audit Committee of Durham County Council met on Wednesday 30 September 2026 to review a range of reports concerning the council's financial health, operational performance, and risk management. Key discussions were scheduled to cover the external audit strategy for the Durham County Council Pension Fund, compliance with international auditing standards, and the council's annual health, safety, and wellbeing performance.

Audit Strategy Memorandum for Durham County Council Pension Fund

The committee was scheduled to consider the Audit Strategy Memorandum for the Durham County Council Pension Fund for the year ending 31 March 2026. This memorandum, prepared by the External Auditor, Mazars, outlines the planned scope and timing of the audit, identifies significant and enhanced audit risks, and addresses considerations regarding the auditor's independence. The report details the audit timeline, including planning, interim work, fieldwork, communication, and completion phases, and sets out materiality levels for the audit. Significant risks identified include management override of controls and the valuation of investments within level 3 of the fair value hierarchy. The memorandum also details the proposed audit fees and confirms the auditor's independence.

Compliance with International Auditing Standards

A report from the Corporate Director of Resources was scheduled to address the council's compliance with International Auditing Standards (ISA). This report was intended to provide the Audit Committee with proposed responses to the External Auditor's requests concerning the council's arrangements for preventing fraud (ISA240), compliance with laws and regulations (ISA250), litigation and claims (ISA501), and the going concern status of the council (ISA570). The report was to be considered alongside the Section 151 Officer's responses to the External Auditor's questionnaire, aiming to provide assurance on the robustness of these arrangements.

Report of the Audit Committee for September 2025 to August 2026

The Chair of the Audit Committee was scheduled to present the committee's annual report, detailing its work and contributions to the council's governance, internal control, and risk frameworks during the period September 2025 to August 2026. The report was to highlight the committee's proactive and reactive approach to risk and control issues, its role in raising the profile of internal audit, corporate fraud, and risk management services, and its independent questioning of the internal audit plan. It was also to cover the committee's oversight of corporate risk management, health, safety, and wellbeing performance, and its challenge of service managers' responses to internal audit reports. The report was to be presented to County Council for information.

External Audit Progress Update for 2025/2026

A verbal update from the External Auditor was scheduled to provide information on the progress of the external audit for the 2025/2026 financial year.

Annual Health, Safety and Wellbeing Performance Report 2025/2026

The Corporate Director of Resources was to present the annual report on Health, Safety, and Wellbeing (HSW) performance for 2025/2026. This report was to highlight achievements and outline aims for the following year, focusing on statutory compliance and ensuring the safety and health of employees and others affected by work activities. The report was expected to detail employee accident statistics, the performance of Occupational Health Services, fire safety incidents, and regulatory interventions. It was also to cover open water safety initiatives and employee health and wellbeing programmes.

Health, Safety and Wellbeing Performance Report Quarter 1 2026/2027

This report from the Corporate Director of Resources was to provide an update on the council's Health, Safety, and Wellbeing (HSW) performance for the first quarter of 2026/2027. It was to detail accident statistics, fire-related incidents, audit and inspection activity, and the completion rates of audit actions. The report was also to cover enforcement activity, food waste/battery collection initiatives, open water safety, and employee health and wellbeing programmes.

Strategic Risk Management Progress Report for 2026/2027 Review 1

The Corporate Director of Resources was scheduled to present the Strategic Risk Management Progress Report for the first review of 2026/2027. This report was to highlight the strategic risks facing the council and provide an insight into the work carried out by the Corporate Risk Management Group between April and July 2026. The report was to detail changes to the corporate risk log, including closed, new, updated, reinstated, escalated, and moved risks. It was also to provide updates on the management of ten key risks and thirty-two non-key risks, summarising the council's overall strategic risk position.

Internal Audit Progress Report Period Ended June 2026

This report from the Corporate Director of Resources was to provide an update on the work undertaken by Internal Audit during the period April to June 2026, as part of the Internal Audit Plan for 2026/27. It was to detail performance against the plan, assurance opinions issued, any amendments to the plan, and the progress of management responses to internal audit reports. The report was also to advise of any changes to the audit process and provide an update on performance against key performance indicators.

Appointment of External Quality Assessment (EQA) Provider

The Corporate Director of Resources was to present a report regarding the appointment of an External Quality Assessment (EQA) provider for the Internal Audit function. The report was to inform the committee of the requirement to commission an EQA, recommend the recruitment of a suitably qualified external provider, and seek approval for the proposed timing of the next EQA. The report was to detail the regulatory requirements for EQAs, the proposed timing, and the justification for the direct award to Gard Consultancy Services, outlining the scope of the assessment.

Exclusion of the Public

A resolution was scheduled to be considered regarding the exclusion of the public from the meeting for the discussion of items containing exempt or confidential information.

Internal Audit Progress Report Period Ended June 2026 (Exempt)

This item, detailed in Part B of the agenda, was to cover exempt information relating to the Internal Audit Progress Report for the period ended June 2026.