The ESPO Finance and Audit Subcommittee meeting scheduled for 11 February 2026 was set to review key governance documents for internal audit, consider the annual internal audit plan for the upcoming year, and receive an update on the progress of the current internal audit plan. The meeting's agenda also included discussions on financial performance and the budget.

Global Internal Audit Standards in the UK Public Sector - Governance Documents

A significant portion of the meeting was dedicated to discussing important governance documents required for conformance with the Global Internal Audit Standards (GIAS) in the UK public sector, which became effective from 1 April 2025. These standards combine the GIAS with CIPFA's 'Application Note' to form 'GIAS UK (public sector)'. The report pack indicated that three key documents were scheduled for consideration: an Internal Audit Charter, a self-assessment of compliance with CIPFA's Code of Practice for the Governance of Internal Audit in Local Government, and an Internal Audit Strategy.

The draft Internal Audit Charter, revised in February 2026, was intended to set out the purpose and mandate for ESPO's Internal Audit Service, referencing the GIAS UK (public sector) and the Accounts and Audit Regulations 2015. It was noted that the Charter would cover the Subcommittee's oversight function, roles and responsibilities, and the scope of services provided by Leicestershire County Council's Internal Audit Service.

The report also detailed CIPFA's Code of Practice for Internal Audit Governance in Local Government, which provides a framework suited to UK local government bodies, outlining the roles and responsibilities of audit committees, senior management, and those charged with governance. A provisional self-assessment of compliance with this Code for ESPO was included, highlighting areas for improvement, such as the need for enhanced audit committee guidance and training, and the development of protocols for joint work with other organisations.

Finally, an Internal Audit Strategy, developed for the period January 2026 to March 2028, was presented. This strategy was designed to guide the internal audit function towards fulfilling its mandate and was developed with reference to the Institute of Internal Auditors' guidance and consultation with Leicestershire County Council's statutory officers and Corporate Management Team. The report recommended that the Subcommittee delegate to the Consortium Treasurer the authority to make any necessary minor changes to these three governance documents.

Annual Internal Audit Plan 2026-27

The Subcommittee was scheduled to review and approve the ESPO Internal Audit Plan for the 2026-27 financial year. This plan is developed by the Head of Internal Audit Service (HoIAS) to support the achievement of ESPO's objectives and inform the Annual Governance Statement. The planning methodology outlined in the report pack involved aligning the audit plan with the Corporate Risk Register, the Business Strategy, and Governance Reporting, as well as researching emerging risks through various consultations and evaluations. The plan included annual audits of key financial and IT systems, as well as targeted audits for significant projects or material changes to ESPO's business risks. A contingency was also retained for advisory work and unforeseen risks.

Internal Audit Service - Progress Against the 2025-26 Internal Audit Plan

A summary of the work undertaken by Leicestershire County Council's Internal Audit Service (LCCIAS) for ESPO between 23 September 2025 and 26 January 2026 was presented. The report detailed the progress against the 2025-26 Internal Audit Plan, including the status of various audits, their assurance opinions, and any high importance (HI) recommendations. The report indicated that, to date, no high importance recommendations had been issued, and no partial assurance reports had been given for the 2025-26 coverage. The progress report detailed completed audits, audits in progress, and any deferred or cancelled audits, providing an overview of the internal audit service's activities during the period.

Financial Performance Update and Budget

The meeting was also scheduled to receive an update on ESPO's financial performance for the nine months ending December 2025. Additionally, the budget for 2026/27 was to be considered. These items, along with a Risk Review, were listed towards the end of the agenda and were likely to be discussed in private session, as indicated by the agenda's note regarding the exclusion of the press and public for certain items.