The Audit Committee of Lincolnshire Council was scheduled to review the council's high needs system for Special Educational Needs and Disabilities (SEND) and alternative provision, receive an update on the audit of the 2024/25 accounts for both the council and the Lincolnshire Pension Fund, and discuss proposed audit fees for 2025/26. The committee was also set to review the risk management progress report, consider proposed amendments to the council's Financial Regulations and the budget definition within its Constitution, and review its work programme.

High Needs System - SEND and Alternative Provision

The committee was scheduled to receive a report providing an overview of the legal framework, processes, and procedures for managing SEND and alternative provision in Lincolnshire. The report was also intended to share outcomes from the Local Area Partnership inspection, highlighting strengths and areas for improvement, provide insights into local data and trends, and outline workstreams delivered and the next phase of early support for those with additional needs. The report aimed to provide the committee with oversight of the current high needs system and alternative provision landscape within Lincolnshire, acknowledging the national context of significant resource, sufficiency, and financial pressures.

Update on the Audit of Accounts and Proposed Audit Fees

A report was scheduled to be presented by the external auditors, KPMG, detailing the draft year-end reports for the audit of accounts for Lincolnshire County Council and the Lincolnshire Pension Fund for the 2024/25 financial year. The report was also to outline the proposed audit fees for the 2025/26 financial year. The report indicated that the audits were substantially complete, with minor presentational and casting adjustments identified for the council's accounts. Uncorrected audit misstatements exceeding the materiality threshold were noted in relation to cash and cash equivalents and fixed asset additions. For the Lincolnshire Pension Fund, KPMG expected to issue an unmodified Auditor's Report. The proposed audit fees for 2025/26 included uplifts for changes in audit requirements, particularly for the Lincolnshire Pension Fund regarding ISA19 – Employee benefits, and a contractual uplift for indexation.

Risk Management Progress Report

The committee was scheduled to receive an update on how the council's strategic risks are being managed. The report indicated that 12 risks constituted the strategic risk register, with four risks having been de-escalated to directorate risk registers due to improved assurance. These included outstanding debt, recruitment and retention, education travel, and strategic contracts. The Market Supply (Children's) issue remained a material concern, having progressed from a risk to an issue, with a new strategic board established to support mitigation. The High Needs Block Budget risk remained unchanged, with potential mitigations anticipated from the delayed SEND review white paper. The report also highlighted risk management activities such as the review and update of the risk appetite process, development of e-learning tools, and the first meeting of the Strategic Risk Group. Horizon scanning topics included economic conditions, cyber impacts, NHS changes, and the potential impacts of the immigration white paper.

Review of the Financial Regulations

This report invited the committee to consider proposed amendments to the council's Financial Regulations and consequent amendments to the budget definition within the Constitution. These changes were intended to reflect updated regulations, professional codes of practice, and guidance supporting best practice. Amendments were proposed to sections concerning Roles in Financial Management, Financial Planning and Management, Risk Management and Internal Control, Control of Resources and Other Assets, and Income and Expenditure. These changes aimed to ensure legislative compliance, reflect current operational practices, and simplify language for easier application, particularly regarding budget virements and the Treasury Management function.

Audit Committee Work Programme

The committee was scheduled to review its work programme, which had been compiled based on core assurance activities outlined in its terms of reference and best practice. The programme aimed to help the committee effectively deliver its responsibilities and track areas requiring further work or assurance, particularly in preparation for approving the Annual Governance Statement. The work programme detailed scheduled items for future meetings, including strategic risk updates, constitution reviews, updates on audits, and internal audit progress reports.