The Audit and Procurement Committee are scheduled to meet to discuss the external audit plan, the council's code of governance, and financial monitoring. They will also be reviewing corporate risk and outstanding issues. Some items, relating to procurement and severance packages, will be discussed in private.

External Audit Plan

The committee will be asked to note the 2024/25 External Audit Plan from Grant Thornton, the council's external auditor. The plan details the scope and timing of the audit of the council's accounts. It notes that the auditors will design a programme tailored to address identified risks. Key risks identified in the Audit Plan are:

• Management override of controls
• The revenue cycle includes fraudulent transactions
• The expenditure cycle includes fraudulent transactions
• Valuation of land and buildings, and investment properties
• Valuation of the pension net asset/liability
• Accounting for the Group and related disclosures
• Valuation of long-term investments
• Equal pay claims
• IRFS16 Implementation¹

The report pack also includes Grant Thornton's 'Informing the risk assessment' report, and the '2024/25 IT audit findings' report. The IT audit report notes:

Although there were some areas for improvement identified, there were no significant deficiencies in IT controls relevant to the audit of financial statements.

The audit of the 2024/25 accounts will be adapted to reflect that the council's prior four years accounts have not been audited, so reliance cannot be placed on brought forward balances. The deadline for the publishing of the audited 2024/25 accounts has been set as 27 February 2026.

Local Code of Corporate Governance

The committee will be asked to consider the Local Code of Corporate Governance 2025/26 and confirm it accurately represents the council's governance arrangements. The Local Code of Corporate Governance sets out Coventry City Council's arrangements for meeting the seven principles of good governance as defined in the CIPFA/Solace Framework 'Delivering Good Governance in Local Government'.²

The principles of good governance are:

• Behaving with integrity, demonstrating strong commitment to ethical values, and respecting the rule of law
• Ensuring openness and comprehensive stakeholder engagement
• Defining outcomes in terms of sustainable economic, social, and environmental benefits
• Determining the interventions necessary to optimise the achievement of the intended outcomes
• Developing the entities capacity, including the capability of its leadership and the individuals within it
• Managing risks and performance through robust internal control and strong public financial management
• Implementing good practices in transparency, reporting and audit, to deliver effective accountability

First Quarter Financial Monitoring Report

The committee will consider the First Quarter Financial Monitoring Report for 2025/26, which advises on the forecast outturn position for revenue and capital expenditure as at the end of June 2025. The net revenue forecast position after management action is for spend in 2025/26 of £1.6m over budget. The council continues to face budget pressures within adult social care, with overspends also being reported in property services and development, regeneration and economic development and city services. These financial pressures are being caused by a combination of continued service demand, complexity and market conditions in social care, legacy inflation impacts, and income shortfalls due largely to the economic climate. The council's capital spending is projected to be £187.6m and includes major schemes progressing across the city.

Annual Fraud and Error Report

The committee will be asked to note and consider the Annual Fraud and Error Report 2024-25. The report provides a summary of the council's anti-fraud and error activity undertaken by the Internal Audit Service for the financial year 2024-25. The work of the team has focused on four main areas during 2024-25, namely:

• Business Support Grants
• National Fraud Initiative
• Referrals and investigations considered through the Council's Fraud and Corruption Strategy
• Fraud awareness

Corporate Risk

The committee will be asked to note the current Corporate Risk Register, indicating that they have satisfied themselves that corporate risks are being identified and managed. The Corporate Risk Register - Appendix 1 identifies the main risks facing the council, the impact of the risk, the inherent risk score before risk mitigation, the risk mitigations, the risk score after the mitigations are applied and where responsibility lies for the council's response. Seven risks have been removed from the register and returned to directorate-level oversight following the Leadership Team review on 8 July 2025:

• Risk 5 – Workforce Delivery of Council Priorities
• Risk 21 – Business Growth & Investment
• Risk 22 – Children's Workforce Stability
• Risk 24 – Climate Change & Sustainability
• Risk 34 – Investments in Companies
• Risk 38 – Illegal Migration Act 2023
• Risk 41 – Sufficiency of Homes for Children in Care

Outstanding Issues

The committee will be asked to consider the list of outstanding items as set out in the appendices to the Outstanding Issues Report, and to ask the director concerned to explain the current position on those items which should have been discharged. The appendices to the report outline items where a report back has been requested to a future committee meeting, along with the anticipated date for further consideration of the issue, and items where additional information was requested outside the formal meeting along with the date when this was completed.