The Audit and Governance Committee of North West Leicestershire Council met on Wednesday, 29 April 2026, to review financial policies, audit progress, and corporate risk. Key decisions included the approval of draft accounting policies for the 2025/26 financial year, the approval of the draft Internal Audit Annual Plan for 2026/27, and the approval of the Internal Audit Charter.

Draft Accounting Policies 2025/26

The committee considered and approved the draft accounting policies for the 2025/26 financial statements, as detailed in Appendix A of the report presented by Anna Crouch, Head of Finance. These policies are crucial for ensuring the Statement of Accounts is produced in accordance with the Chartered Institute of Public Finance and Accountancy (CIPFA) Code of Practice on Local Authority Accounting in the United Kingdom. The report highlighted significant changes in the 2025/26 Code, including mandatory five-year cycles for Property, Plant, and Equipment revaluations and the adoption of International Financial Reporting Standards (IFRS) 17.

Standards and Ethics Report - Quarter 4

Rochelle Tapping, Interim Head of Legal and Support Services and Monitoring Officer, presented the Standards and Ethics Report for Quarter 4 of 2025/26. The report detailed figures for the Local Determination of Complaints and Ethical Indicators. In response to concerns about a lengthy outstanding complaint, Ms Tapping assured the committee that officers would work towards concluding all existing complaints swiftly. The committee noted the report.

Local Government Reorganisation - Accounts and Audit Requirements

Anna Crouch, Head of Finance, presented a report on the accounts and audit requirements arising from Local Government Reorganisation (LGR). The report drew on guidance from the Local Government Association (LGA) Finance Essentials notes, explaining the implications for audit, governance, and financial reporting during the LGR process. A member encouraged the committee to maintain active involvement to ensure effective governance during the transition. The report was noted.

Internal Audit Progress Report

Kerry Beavis, Audit Manager, presented the Internal Audit Progress Report for Quarter 4 of 2025/26. The report detailed progress against the 2025/26 Internal Audit plan. During the discussion, concerns were raised about backlogs and delays in progressing outstanding actions, particularly regarding the root cause analysis for the Unit4 financial system. The Audit Manager explained that while figures might appear high, the total days used in audits were less than detailed due to time spent on updates and support, assuring the committee that audit work would be drafted in time for the Annual Audit Opinion. Following a suggestion from a member, it was agreed to request the Chief Executive attend the next committee meeting on 5 August 2026 to discuss the Unit4 action plan and its progression, with questions submitted in advance. The report was noted.

Internal Audit Strategy

The Audit Manager presented the Internal Audit Strategy, highlighting progress made against key initiatives. A member congratulated the Audit Manager on the progression of the strategy. The committee resolved to note the progress made against the Internal Audit Strategy during 2025/26, support the continued delivery of outstanding actions into 2026/27, including the external quality assessment and the development of data analytics capability, and endorse the ongoing improvement activities designed to enhance the effectiveness and modernisation of the Internal Audit Service.

Internal Audit Annual Plan

The Audit Manager presented the draft Internal Audit Annual Plan for 2026/27. A member welcomed the introduction of a value for money audit focus. The committee resolved to note the draft 2026/27 Internal Audit Annual Plan report and approved it.

Internal Audit Charter and Mandate

The Audit Manager presented the Internal Audit Charter and Mandate. Following the presentation, a member emphasised the importance of internal audit independence. The committee resolved to approve the Internal Audit Charter.

Corporate Risk Update

Kerry Beavis, Audit Manager, presented the Corporate Risk Update. A brief discussion took place regarding whether the Unit4 financial system should be a standalone corporate risk. The Head of Finance explained that Unit4 was classified as a 'business as usual' system and was included within an existing risk on the finance team's service risk register. The report was noted.