The Governance and Audit Committee of Leicester City Council met on Monday 26 January 2026 to review procurement procedures, internal audit progress, and to consult on the upcoming internal audit work programme. Key decisions included noting the mid-year procurement update, which showed a significant reduction in waivers compared to the previous year, and noting the progress of the internal audit programme. The committee also began the consultation process for the 2026-27 internal audit work programme.

Mid-Year Procurement Update

The committee received a mid-year update on procurement activities for the 2025-26 financial year. Izabela Skowronek, Head of Procurement, presented the report, highlighting that 63 procurements with a total estimated value of £202 million had been completed between April and September 2025. Crucially, there had been a significant reduction in procurement waivers, with only 20 approved compared to 122 in the entire 2024-25 financial year. This reduction was attributed to improved controls and compliance arrangements.

A procurement waiver is a formal process where the Council is permitted to proceed with a contract without fully adhering to all elements of the Contract Procedure Rules[^1]. Reasons for waivers can include urgency, continuity of service, retrospective approval, or limited market availability. While the reduction in waivers was welcomed, members raised concerns about the predictability of some waivers and asked about measures to further reduce foreseeable instances. Officers explained that enhanced monitoring, early risk identification, increased engagement with service areas, and targeted training were in place to address this. Two waivers had exceeded legal procurement thresholds due to an unsuccessful procurement exercise for security services, leading to an extension of existing arrangements while a new procurement was undertaken. The committee noted the contents of the report and made comments to the Director of Finance.

Internal Audit Progress Report

Connor Munro, Head of Internal Audit, presented the progress report on the internal audit work programme for 2025-26. Five audits had been finalised, with four more at the report stage. The report detailed the overall status of the audit programme, including areas such as ICT Network Security, Contract Management, and Information Security.

A key finding was the audit of the Contract Procedure Rules waivers, which had been requested by the committee in September. This audit reviewed the five highest value contract waivers across departments and concluded that there was reasonable assurance, with a robust control framework in place . However, it was noted that four out of the five waivers reviewed were retrospective, meaning they were approved after the Contract Procedure Rules had already been breached. While acknowledging that improved forward planning could have avoided some of these situations, the audit highlighted that the Council's approach of requiring transparency and corrective action for waivers was operating effectively. The committee noted the progress made in delivering the internal audit work programme and plans for the remainder of the year.

Internal Audit Work Programme Consultation 2026-27

The committee began the consultation process for the 2026-27 internal audit work programme. Connor Munro explained that the programme is developed to provide professional and independent assurance, aligned with the Council's risk profile, governance framework, and professional standards. The work programme is designed to assess the effectiveness of governance, risk management, and internal control arrangements.

Members were informed that they could formally or informally suggest potential audit priorities. A specific request was made for Internal Audit to consider including work relating to Council officers holding multiple roles or contracts within the organisation. The committee noted the consultation report and agreed that Internal Audit should incorporate the suggested additional work area into their considerations.

Action Tracker

The committee noted the progress on actions agreed at previous meetings as detailed in the Action Tracker. The tracker indicated that the action to include a further breakdown of lone working in the Health and Safety report and to invite Trade Union representatives to a future meeting was still open and would be included in future reports.