Here is a summary of the topics scheduled for discussion at the Audit Committee meeting. The committee will be considering internal and external audit plans, risk management, and the work programme for the year. It is important to remember that this is only a summary of the report pack, and does not indicate what the council will actually discuss or decide.

KPMG Updated External Audit Plan and Strategy

The Audit Committee will be provided with an update on KPMG's External Audit Plan and Strategy for the year ended 31 March 2025. The plan, attached as an appendix to the Item 5 - Audit Plan covering item 25.9.25 report, outlines the planned audit approach and scope for the 2024/25 audit, which is governed by the Local Audit and Accountability Act 2014 and complies with the NAO's 2024/25 Code of Audit Practice. The key members of the engagement team are named as Debra Chamberlain, Director at KPMG, Emma Trood, Manager, and Claudia Olaye-Felix, Assistant Manager.

The report pack notes that the government has introduced measures to resolve the backlog of local government financial reporting and audit. Amendments were made to the Accounts and Audit Regulations and NAO's Code of Audit Practice, allowing auditors to give disclaimed opinions over any open, incomplete audits up to the period ending 31 March 2023. KPMG issued a disclaimed audit opinion for 2023/24 on 28 February 2025. The report pack states that elements of the opening balances and 2023/24 comparatives are still impacted by previous disclaimers, and as such the audit opinion is likely to be modified in relation to this matter.

The audit plan identifies a number of significant risks:

• Valuation of land and buildings
• Valuation of investment property
• Management override of controls
• Valuation of post retirement benefit obligations

The plan also identifies the adoption of IFRS 16[^2] as another audit risk.

The report pack also includes a summary of the risk assessment for value for money, and identifies two significant risks: financial sustainability, and improving economy, efficiency and effectiveness.

Strategic Risk Register Deep Dive - Governance

The Audit Committee will consider a progress report on individual risks identified in the Council's Strategic Risk Register, specifically focusing on governance. The Strategic Risk Register Deep Dive - Governance report includes an update on two key risks:

• Failure of wholly owned companies and key strategic partnerships: This includes ineffective decision making and oversight, financial impact on the council, and companies no longer being financially viable. Controls in place include long term recovery plans, meetings between the council and its companies, a Shareholder Committee, boards for each of the companies, and an updated Governance Framework. The report pack states that a review of Blackpool Coastal Housing is due to take place this financial year to determine the future of the management agreement. The Shareholder Committee agreed for Blackpool Operating Company Ltd articles to be changed to include wider tourism responsibilities and to be renamed Blackpool Tourism Ltd.
• Changes to local government structures: This includes diverted resources and staff retention issues. The Lancashire Combined County Authority (LCCA) has been created, with Blackpool Council as a constituent member. The Council's Chief Executive has been seconded as the LCCA's Monitoring Officer. The report pack states that all local authorities are working together towards the preparation of a submission to the government in November regarding the reorganisation of local government.

Internal Audit Follow-Up: Fostering

The Audit Committee will consider a progress report on the recommendations made in the internal audit report relating to fostering issued on 22 August 2024. The Internal Audit Follow-Up - Fostering report provides an update on the actions being implemented to address the audit recommendations.

The report pack notes that Blackpool is marked by significant deprivation, which contributes to family instability and the heightened demand for foster care services. Children's Services prioritises supporting children to remain safely within their families or in family settings whenever feasible, and foster homes are preferred when staying with the birth family is not possible. The authority categorises its in-house foster carers into three main types: Mainstream Foster Carers, Connected Carers (Kinship Carers), and Regulation 24 Foster Carers.

The scope of the audit included compliance with statutory duties, policies and procedures, recruitment and assessment processes, matching processes, training and support, performance evaluation, and the payment process for in-house foster carers. The report pack states that the audit provided reasonable assurance that the Fostering Service effectively offers a structured and supportive framework for placing children and young people in foster care.

The Appendix 3 a - Internal Audit Follow Up - Fostering report details the agreed action plan, including recommendations related to elevating the status of foster carers, completing annual assessments, reviewing policies and procedures, implementing a Fostering Friendly Policy, engaging with faith community groups, and enhancing the user experience of the Fostering Service.

Audit and Risk Services Quarter One Report

The Audit Committee will receive a summary of the work completed by Audit and Risk Services in quarter one of the 2025/26 financial year. The Audit and Risk Services Quarter One Report includes details of internal audits scoped or underway, corporate fraud investigations, and the activities of the Risk and Resilience Team and Health and Safety Team.

Internal audits that have been scoped in the quarter and/or fieldwork underway include:

• Adult Services: Supported Living (Extra Support)
• Children's Services: Family Hub North, Family Hub South, Family Hub Central, Educational Attainment, Music Services
• Chief Executives: 16/17 year old accommodation, Workforce Development and Planning, Social Housing Financial Control Assurance Testing
• Communication and Regeneration: Libraries IT system, Car Park Income, Palatine Sports Centre
• Community and Environmental: Moor Park Sports Centre, Common Edge Playing Field, Blackpool Sports Centre, Severe Weather Alerts
• Corporate: Lived Experience Services
• Public Health: Vaccine Programme
• Resources: Overview of Company Property Compliance
• Schools: Bispham Endowed Primary School

The report pack states that work is underway for the Single Person Discount/Electoral Register NFI exercise, and 27 incorrect claims for Single Person Discount were identified, totalling £15,770 of incorrectly applied discounts.

The report also includes performance indicators for the Internal Audit Team, Risk and Resilience Team, Health and Safety Team, and Corporate Fraud Team.

Audit Committee Workplan 2025/2026

The Audit Committee will note the workplan for the 2025/2026 municipal year. The Audit Committee Workplan 2025-26 outlines the items to be considered at future meetings, including internal audit follow-ups, strategic risk register deep dives, and reports from KPMG and Audit and Risk Services.