The Audit and Standards Committee of Northumberland County Council was scheduled to meet on Wednesday, 6 August 2025, to discuss a range of topics including the annual governance statement, internal and external audit reports, risk management, and corporate fraud. The committee, including independent members Peter Topping, Chair, Stuart Green, Jim Hannah and Simon Openshaw, was also expected to review the council's financial accounts and treasury management activities.

Annual Governance and Internal Audit

The committee was scheduled to review the draft Annual Governance Statement for 2024-25, to assess whether it accurately reflected the risk environment and assurances. The draft Annual Governance Statement included the annual opinion of the Chief Internal Auditor, and stated that systems of governance, risk management and control were generally operating effectively across the council, leading to an overall 'reasonable' level of assurance. The report noted that a Corporate Peer Review undertaken by the Local Government Association, received during January 2024, commented on the positive impact this is having on organisational culture and governance. The report also noted that Internal Audit work undertaken during 2024/25 had confirmed the implementation of actions taken to strengthen governance arrangements. Internal Audit assignments, in respect of Policy Framework and Implementation of Actions from the Governance Review of 2022, both received 'reasonable' assurance opinions.

The committee was also scheduled to discuss the Strategic Audit Plan 2024/25 - Final Monitoring Statement, which provided a final monitoring statement in respect of the Strategic Audit Plan for 2024/25. A separate report provided an Interim Monitoring Statement for the Strategic Audit Plan 2025/26.

Corporate Fraud

The committee was scheduled to discuss the Corporate Fraud Annual Report 2024/25, to update on corporate fraud activity undertaken during the period 1 April 2024 – 31 March 2025. During this period, 1272 referrals were received, of which 969 investigations were opened. 1014 investigations were closed. The report stated that the team were responsible for achieving fraud prevention, detection and identification to the value of £4,121,208.

Financial Matters

The committee was scheduled to discuss the Statement of Accounts for the year ended 31 March 2025. The draft Statement of Accounts showed that the Council's net worth was £983.442 million at 31 March 2025. The Statement of Accounts for the financial year 2024-25 has been prepared in accordance with the Accounts and Audit Regulations 2015, Accounts and Audit (Amendment) Regulations 2024 and the Code of Practice on Local Authority Accounting 2024-25 (the Code) as published by the Chartered Institute of Public Finance and Accountancy (CIPFA).

The committee was also scheduled to discuss the Treasury Management Annual Report for the Financial Year 2024-25. The report provided details of performance against the Treasury Management Strategy Statement (TMSS) 2024-25 approved by the County Council on 21 February 2024. The report provided a review of borrowing and investment performance for 2024-25, set in the context of the general economic conditions prevailing during the year. It also reviewed specific Treasury Management prudential indicators defined by the (CIPFA) Treasury Management Code of Practice and CIPFA Prudential Code for Capital Finance in Local Authorities, (the Prudential Code), and approved by the Authority in the TMSS.

Corporate Risk Management

The committee was scheduled to receive an update on the latest position of the corporate risk register following review by Executive Management Team and Cabinet. The report noted that the Council's corporate risks were reviewed and an updated corporate risk register was agreed by Executive Management Team and Cabinet in January 2025, containing 11 risks. A subsequent review of the corporate risks has now been undertaken, with the risk relating to Strategic Community Safety to now be managed at a service strategic level.

Group Audit Committee

The committee was scheduled to receive an update on Internal Audit work in relation to active group entities. The report noted that Northumberland County Council's Audit and Standards Committee fulfils the role of 'Group Audit Committee' for all entities operating within the County Council's accounting group boundary. Since the previous Group Audit Committee update, work on the following Internal Audit assignments have been completed and reported to Advance Northumberland's Audit Committee:

• Sundry Debtors (Reasonable Assurance)
• Creditors (Reasonable Assurance)
• Risk Management (Reasonable Assurance)
• Commercial Rent Assessment and Collection (Reasonable Assurance)

Private Finance Initiative

The committee was scheduled to receive an update on the Private Finance Initiative (PFI) and Similar Contracts Accounting Policy applied in the preparation of the 2024-25 Statement of Accounts. The report noted that From 1 April 2024 PFI schemes are now accounted in accordance with IFRS 16 Leases. Under IFRS16, where indexation (or other changes in a rate) affects future lease payments, the lease liability requires to be remeasured. Instead of expensing the increased payment (contingent Rent), the net present value of future payments that comprise the liability is recalculated based on the revised level of payments.

Other Business

The committee was also scheduled to review and note its monitoring report/action log for the 2025/26 council year.