Here is a summary of the scheduled Audit Committee meeting. The committee will be reviewing the unaudited statement of accounts, the audit strategy, the counter fraud and corruption strategy, the implementation of global internal audit standards, an internal audit update, and the Public Services Directorate risk register. The meeting will also include an introduction to the Director, Children and Young People's Service.

Counter Fraud and Corruption Strategy

The committee will be asked to review and approve the updated Counter Fraud and Corruption Strategy 2025–28. The strategy outlines Calderdale Council's approach to preventing, detecting, and responding to fraud, bribery, and corruption, aligning with national standards and best practice. The report pack states that fraud continues to pose a significant risk to public sector organisations, with estimated annual losses of up to £51.8 billion across government. The council faces increasing financial pressures, making it essential to safeguard resources and maintain public trust through robust counter fraud arrangements.

The strategy has been developed in line with national guidance including the Public Sector Counter Fraud Authority's Cross-Government Counter Fraud Functional Strategy 2024–27, CIPFA's Fighting Fraud & Corruption Locally Strategy for the 2020s, and CIPFA's Code of Practice on Managing the Risk of Fraud and Corruption. It also reflects the council's commitment to the Bribery Act 2010¹ and incorporates the Nolan Principles² and the International Public Sector Fraud Forum's Principles of Public Sector Fraud.

The key features of the policy are:

• Clearly defined roles and responsibilities for members, officers, internal audit, and contractors.
• Reinforced internal control environment requirements through governance, financial regulations, and ICTD procedures.
• Annual fraud risk assessments and continuous monitoring of emerging threats.
• Collaboration with national bodies, regional networks, and data sharing initiatives.
• Ongoing fraud awareness and specialist training for staff.
• Confidential reporting mechanisms and a range of sanctions including prosecution and civil recovery.
• Regular review of the strategy and benchmarking against national standards.

Implementation of the Global Internal Audit Standards

The Audit Committee will be briefed on the Global Internal Audit Standards (GIAS) 2024, how they should be applied in the UK public sector, and what is being done at Calderdale Council to implement them. The new standards were effective from 1 April 2025 and replace the Public Sector Internal Audit Standards (PSIAS), first introduced in the UK in 2013. The GIAS framework is organised into five domains which incorporate 15 principles and 52 standards:

• Purpose of Internal Auditing
• Ethics and Professionalism
• Governing the Internal Audit Function
• Managing the Internal Audit Function
• Performing Internal Audit Services

The report pack states that standards are necessary to codify and define the profession, govern and support the effective delivery of internal audit services, and ensure auditors are able to carry out their responsibilities to protect organisations and raise warnings about key risks early.

The key difference between the new GIAS and the existing PSIAS is the inclusion of 'essential conditions' (or roles) for the board (or Audit Committee in the UK public sector). GIAS describe essential conditions as establishing 'a necessary foundation for an effective dialogue between the board, senior management, and the chief audit executive, ultimately enabling an effective internal audit function'. These are principally concerned with mandate, support, independence, qualifications and experience, communication and engagement, resourcing, and quality.

Internal Audit Update

The Audit Committee will receive an update on the work of Internal Audit since the last meeting in July 2025, detailing changes to the plan and progress made against it regarding both audit and counter fraud work. The update will also include updates on risk management, and fraud and corruption.

The report pack notes that there are three vacancies within the combined Internal Audit and Risk Management team, and that recruitment to these posts, and for another Independent Member of the Audit Committee, is to commence shortly.

A summary of work undertaken since the last Audit Committee update report includes:

• Three draft reports have been issued on Access Control Management, Flutter Bites Café and Mental Health Act Compliance.
• Grant Assurance Statements have been signed off for HUG2 (DESNZ) and the Bus Service Operators Grant (Department for Transport).
• Fieldwork has started on the Corporate Financial Systems Controls, Asset Management and 11 Highways grants from WYCA³.

Review of the Public Services Directorate Risk Register

The Audit Committee will review the Public Services Directorate Risk Register. The directorate risk register makes reference to the separate risk register that has been developed as part of the programme of work to transition the council's waste and recycling services from Suez, the current operator, to a new joint venture company. This risk register is reviewed bimonthly and will be subject to monthly review from January 2026, leading up to the transition at the end of July.

The Public Services Directorate Risk Register includes discussion of:

• Failure to deliver the waste collection service.
• Depots not fit for purpose, particularly Battinson Road Depot.
• Failure to deliver effective enforcement and regulatory services.
• Failure to manage vulnerable customer needs.
• Physical abuse of staff.
• Non-achievement of income.
• Inability to recruit and retain staff.
• Failure to deliver a new waste collection service.
• Failure to deliver 'Home to School Transport' due to escalation in CYP with an EHCP⁴.
• Delivering cohesive and resilient communities.
• Budget control.
• Maintaining a clean, green, and safe public realm.
• Ineffective processes, procedures and collection of Council Tax arrears.

Unaudited Statement of Accounts 2024-25

The Audit Committee will consider the unaudited Statement of Accounts for 2024/25. The report pack notes that the audited accounts for 2023/24 were approved by the Audit Committee in February 2025, and that Forvis Mazars have now issued the Audit Completion Certificate on 4 September 2025.

The unaudited Statement of Accounts are certified by the Chief Financial Officer (Director Resources and Transformation) to confirm that the accounts have been prepared in accordance with the Code of Practice on Local Authority Accounting and that they give a true and fair view of the financial position of the authority at the reporting date and of its expenditure and income for the year ended 31 March 2025.

The Statement of Accounts are set out in four sections and a glossary:

1. A Narrative Report which provides some background and context to the council's financial position in 2024/25.
2. The core financial statements: Comprehensive Income and Expenditure Statement; Movement in Reserves Statement; the Balance Sheet and Cash Flow Statement.
3. Notes to the core financial statements.
4. Other Statements comprising the Collection Fund and notes, required as a billing authority in relation to council tax and business rates.

The deadline required by the Accounts and Audit Regulations for the completion of the audit of accounts for 2024/25 is 27 February 2026.

Audit Strategy Memorandum

The Audit Committee will discuss the Audit Strategy Memorandum for the year ending 31 March 2025, presented by Alastair Newall, Key Audit Partner at Forvis Mazars LLP. The report pack states that the report summarises the audit approach, including the significant audit risks and areas of key judgement identified, and provides details of the audit team.

The conditions created by the imposition of the backstop arrangements mean that Forvis Mazars do not plan to complete the work necessary to provide an opinion on the financial statements. As a result, they intend to issue a disclaimer of opinion on the council's financial statements. The approach they have taken to carrying out the council's audit has been designed so that they can comply with International Standards on Auditing (UK) and issue their audit report to allow the council to meet the backstop date of 27 February 2026 for publishing the financial statements and other relevant information.

The Audit Strategy Memorandum also covers:

• Materiality and misstatements
• Value for money arrangements
• Audit fees and other services
• Confirmation of independence
• Key communication points
• Current year updates, forthcoming accounting and other issues

Introduction to Director, Children and Young People's Service

The Audit Committee will receive an introduction to the Director, Children and Young People's Service.