The Audit Committee of Ashford Borough Council is scheduled to meet on 2nd October 2025 to discuss the corporate risk register, the draft statement of accounts, and the audit committee's annual report. The committee will also receive an external audit progress report.

Here's a closer look at the topics the committee is expected to address:

External Audit Progress

The Audit Committee will receive an update on the external audit from representatives of Grant Thornton, including Key Audit Partner Parris Williams, Engagement Manager Saniya Malik, and Assistant Manager Natasha Bharech. The report pack includes a detailed audit progress report, which covers:

• Financial Statements Audit: Initial planning was undertaken in March and April 2025, with a detailed indicative audit plan communicated to the Audit Committee in June 2025. The final audit plan remains unchanged. The 2024/25 draft financial statements were received from management on 30 June 2025, in line with the statutory deadline. A revised set of financial statements is expected in October 2025.
• Value for Money: The 2024/25 risk assessment has identified a continuing significant weakness in relation to financial sustainability regarding the Housing Revenue Account (HRA), due to unbudgeted costs from contract insourcing and regulatory compliance. The auditor's annual report regarding value for money arrangements will be issued in November 2025 and presented to the January 2026 Audit Committee.
• Certification of claims and returns: Testing for 2023/24 Housing benefits is substantially complete, with a targeted date of completion of November 2025. The 2023/24 work on Pooled Housing Capital Receipts is in progress and planned to be completed in October 2025.
• Audit Fees: The scale fees for Ashford Borough Council are £193,843 for the Council audit.

The report also discusses the Local Authority Backstop and Regaining assurance, including guidance from the National Audit Office (NAO) and an audit approach to build back assurance. It notes that the council is expected to receive grant funding under a Section 31 Grant Determination to support build-back.

An audit sampling tracker details progress on audit sampling in relation to the financial statement audit.

Finally, the report provides sector updates, including:

• Lessons from 2023/24 auditors' annual reports
• Financial Instruments in Local Government Accounts
• Reorganisation update
• Other structural changes
• Local government financial sustainability
• The Spending Review
• Fair Funding Review 2.0¹
• Public procurement
• Keeping fit for the future
• Keeping the leisure estate fit for the future
• Asylum seekers update

Corporate Risk Register

The Audit Committee is responsible for considering the council's corporate risks and the key controls in place to manage them. The Corporate Risk Register is assessed using the council's Risk Management Framework².

The report pack includes the current Corporate Risk Register, which provides details of individual risks and explains the current position and any further action that may need to be taken to manage them.

Key changes to the register since the last update include:

• A new strategic risk has been added regarding the risk of designation for quality of major planning decisions, where more than 10% of decisions made on major development applications within an assessment period are overturned on appeal.
• The risk of non-compliance with the Health and Safety Act and Regulations has increased slightly following an internal Health & Safety Audit conducted in April 2025.
• The risk of recruitment and retention of building control staff impacting statutory functions of service has increased.

Draft Statement of Accounts 2024/25

The Audit Committee will be presented with the Draft Statement of Accounts for 2024/25. The accounts have been published on the council's website for the statutory public inspection on 30 June 2025.

The report pack includes the Draft Statement of Accounts, which contains:

• Core Financial Statements
• Supplementary Single Entity Statements
• Notes to the Core Financial Statements
• Glossary

Audit Committee Annual Report 2024/25

The Audit Committee will review a report outlining how it has effectively discharged its duties during 2024/25. The report provides assurance to the council that important internal control, governance and risk management issues are being monitored and addressed by the committee.

The report pack includes the draft annual report, which covers:

• Joint Introduction from the Chair of the Audit Committee, Councillor Charles Suddards.
• Purpose of the Audit and Governance Committee Annual Report
• What is the purpose of the Audit Committee?
• Key challenges this year
• Membership & attendance during the year
• Delivery of the Committee's Terms of Reference
• CIPFA Self-Assessment of Good Practice
• Conclusion
• Terms of Reference & Responsibilities
• Action Plan 2025/26