The Audit Committee of Hertfordshire Council met on Thursday 12 February 2026 to review the updated 2024/25 Statement of Accounts and receive an audit update. The committee was also scheduled to discuss the audit update for the Pension Fund's 2024/25 Annual Report and Statement of Accounts.

2024/25 Updated Statement of Accounts & Audit Update

The Director of Finance presented a report on the updated 2024/25 Statement of Accounts and an updated ISA260 report from KPMG. The report indicated that strong progress had been made on the audit, with the Council remaining well-placed to meet the statutory deadline of 27 February 2026 for signing off the accounts. Only a small number of items remained outstanding relating to the auditors' build-back assurance work on the 2022/23 accounts. The updated ISA260 report confirmed no changes to previously presented audit adjustments. One additional control recommendation was raised concerning the publication of the Annual Governance Statement (AGS) in the draft accounts. The report noted that the disclaimed audit opinion on the 2022/23 and 2023/24 accounts was expected to be removed for the 2024/25 accounts, although the opinion would still need to be modified due to the inability to obtain sufficient assurance over the income and expenditure statement comparatives. This modification relates solely to comparator information and does not affect the assurance provided over the 2024/25 year itself.

The committee was invited to note the updated ISA260 report, the limited number of outstanding items, and that the audit opinion is expected to be modified but not disclaimed. The committee was also asked to note the updated 2024/25 Statement of Accounts and approve the delegation of the final signing of accounts to the Chair (or Vice-Chair in their absence) and the Director of Finance to ensure the statutory deadline is met. Approval was also sought for the Letter of Representation to be signed by the Director of Finance.

Pension Fund Audit Update and 2024/25 Annual Report and Statement of Accounts

The Director of Finance provided an update on the external auditor's (KPMG) audit of the Pension Fund's 2024/25 Annual Report and Statement of Accounts. At the time of the report, KPMG was still in the process of completing the audit, with outstanding items including a retrospective review of level 3 investments, journal testing, the draft annual report, audit queries, and the finalisation of the audit report and management representation letter.

To ensure the 27 February 2026 deadline was met, the committee was asked to delegate authority to the Chair (or Vice-Chair in their absence) and the Director of Finance to approve and sign the final Pension Fund Annual Report and Statement of Accounts once the outstanding audit work was complete. A draft audit opinion was to be circulated to committee members before the accounts were signed. Officers anticipated that the outstanding items would be completed before a meeting scheduled for 23 February 2026, and an unqualified audit opinion was expected. The Pension Fund accounts are integral to the administering authority's main statement of accounts, and it is common practice for them to be signed off simultaneously.

The committee was also invited to note and comment on KPMG's draft ISA260 audit results report for the year ended 31 March 2024, and the Pension Fund's 2024/25 Annual Report and Statement of Accounts. Approval was also sought for the delegation of the final signing of the Pension Fund's Annual Report and Statement of Accounts, and for the Letter of Representation to be signed by the Director of Finance.

Future Work Programme

The committee was invited to agree its future rolling work programme, with the next meeting scheduled for 27 March 2026. Topics suggested for discussion included the Annual Report of the Audit Committee, the SIAS Audit Plan and Progress Report for 2026/7, the SAFS Audit Plan and Progress Report for 2026/27, a Risk Management Update and Annual Report, a Risk Focus Report, updates on HCC and Pensions Audit for 2025/26, and the Appointment of the Independent Person.

The meeting also noted that there were no items of Part II ('closed') business scheduled for discussion.