The Audit Committee convened to discuss several key reports, including the annual treasury management and fraud reports, and to review the annual governance statement action plan. The committee also considered updates on internal and external audit progress, and a combined improvement plan was proposed to streamline the monitoring of audit recommendations. Additionally, the committee reviewed the Local Government and Social Care Ombudsman's annual letter and approved an addition to the council's anti-fraud policy.

Annual Fraud Report

The Audit Committee reviewed the Annual Fraud Report 2024/25, which outlined the council's counter fraud activities. Key points from the report included:

• Approval of the Anti-Fraud, Bribery and Corruption Policy by the Audit Committee in June 2024.
• Completion of annual fraud risk assessments for 2023/24 and 2024/25.
• Participation in the National Fraud Initiative (NFI), with ongoing investigation of data match reports.
• Identification of three actual frauds in 2024/25, with £13,174 recovered and £3,691 lost.

The report also detailed the council's compliance with the Local Government Transparency Code 2015, including the number of employees undertaking fraud investigations, the number of professionally accredited counter fraud specialists, the total amount spent on fraud investigation and prosecution, and the total number of fraud cases investigated.

Anti-Fraud Policy

The committee considered a report regarding the Anti-Fraud Policy and recommended that Cabinet adopt the amended policy, which included an addition to paragraph 1.6 to reflect the introduction of a new 'failure to prevent fraud' offence outlined in the Economic Crime and Corporate Transparency Act 2023. This addition aims to ensure an anti-fraud culture within large organisations.

Annual Treasury Management Report

The Audit Committee reviewed the Annual Treasury Management Report for 2024/25, which detailed the council's borrowing, investments, and cash flows. Key highlights from the report included:

• Compliance with prudential indicators and the Treasury Management Strategy Statement.
• A provisional underspend of £8.262m due to increased interest rates and effective cash balance management.
• No new external borrowing undertaken during the year.
• Cash balances of £140.9m at 31 March 2025, with an average investment rate earned of 5.1%.
• External borrowing of £185.3m at 31 March 2025, with an average interest rate paid of 3.73%.

Annual Governance Statement Action Plan Update

The committee received an update on the Annual Governance Statement Action Plan for 2025/26. The Chief Legal and Monitoring Officer had established an officer working group to ensure actions were updated and monitored regularly. The working group highlighted that four items had been completed, one item had slipped beyond its target date, and the remaining 30 items were in progress.

Local Government and Social Care Ombudsman Annual Review Letter

The Audit Committee considered the Local Government Social Care Ombudsman Annual Review Letter for the year ended March 2025. The Standards and Governance Committee had reviewed the letter and requested that the Health & Adults Overview & Scrutiny Committee also be made aware of the complaints. The letter highlighted that there were 5 upheld complaints and 100% compliance with Ombudsman recommendations.

Internal Audit Progress Report

The Audit Committee reviewed the Internal Audit Progress Report to 31 July 2025, which summarised the outcomes of audit reviews completed in the period and highlighted any at draft report stage. At 31 July 2025, nine reviews from the 2025/26 audit plan had been completed.

Audit Committee - Combined Improvement Plan

The committee was asked to note and monitor the new Combined Improvement Plan, requested by the Chair of the Committee, detailing progress against actions identified by Internal Audit (high priority only), the Audit Findings Report and the Annual Audit Report. The committee approved the format and content of the plan and advised on the frequency that the plan should be presented to the committee.

External Audit Update

The Audit Committee received an External Audit Update Report - August 2025 from Grant Thornton, Westmorland and Furness Council's external auditors. The report noted that the 2023-24 accounts audit and Value for Money work was completed in February 2025 and that they have issued their final 2023-24 audit certificate in August 2025 following confirmation from the National Audit Office that the Whole of Government Accounts 2023-24 has been concluded. The report also noted that Grant Thornton received the draft 2024-25 accounts on 30 June 2025 and that their audit commenced from July and work is in progress across all identified areas of significant risk.