The Audit and Governance Committee is scheduled to review several key financial and operational reports. Discussions are expected to cover draft accounting policies for the upcoming financial year, an update on standards and ethics, and the implications of local government reorganisation on accounts and audit. The committee will also receive progress reports on internal audit activities and an update on corporate risks.

Draft Accounting Policies 2025/26

The committee is scheduled to consider the draft accounting policies that will be applied in the preparation of the Statement of Accounts for the 2025/26 financial year. These policies are required to be 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 highlights significant changes in the 2025/26 Code, including mandatory five-year cycles for Property, Plant, and Equipment revaluations and the withdrawal of the revaluation model for intangible assets. The report, presented by Anna Crouch, Head of Finance, indicates that any major changes to these policies will be highlighted to the committee alongside the final Statement of Accounts.

Standards and Ethics Report - Quarter 4

Rochelle Tapping, Head of Legal and Support Services and Monitoring Officer, is scheduled to present the Standards and Ethics Report for the fourth quarter of 2025/26. This report provides information on the local determination of complaints against councillors and ethical indicators. The purpose is to enable the committee to monitor the number and nature of complaints received, identify any breaches of the Councillor Code of Conduct, and determine if further targeted training is required for councillors. The report also includes data on ethical indicators, such as instances of concern raised regarding modern slavery, whistleblowing incidents, and the use of Regulation of Investigatory Powers Act (RIPA) powers.

Local Government Reorganisation - Accounts and Audit Requirements

Anna Crouch, Head of Finance and Acting Section 151 Officer, will brief the committee on the accounts and audit requirements arising from Local Government Reorganisation (LGR). The report draws on guidance from the Local Government Association (LGA) Finance Essentials and explains the implications for audit, governance, and financial reporting during this period of structural change. It emphasises that predecessor councils remain responsible for producing and publishing statutory accounts until they are legally dissolved, and that LGR does not alter statutory deadlines or audit requirements. The report highlights the critical role of audit committees during LGR, expecting them to maintain oversight of financial reporting, internal control, and external audit.

Internal Audit Progress Report

Kerry Beavis, Audit Manager, will present the Internal Audit Progress Report for the period of January to March 2026. This report informs the committee of the progress made against the 2025/26 Internal Audit Plan and highlights any significant control failings or weaknesses identified. The report details the audits in progress, performance against agreed targets, and the status of outstanding recommendations. It notes that overdue and extended recommendations are being monitored, and a specific action plan is in place for key financial systems recommendations.

Internal Audit Strategy

Kerry Beavis, Audit Manager, will also present an update on the Internal Audit Strategy for 2025/26 to 2027/28. This strategy outlines key initiatives to strengthen the Internal Audit service, align with Global Internal Audit Standards (GIAS) in the UK Public Sector, and support governance, risk management, and internal control. The report details progress made against the strategy's objectives, including management support, resource development, and continuous improvement activities. The committee is asked to note the progress, support the delivery of outstanding actions, and endorse ongoing modernisation initiatives.

Internal Audit Annual Plan 2026/27

Kerry Beavis, Audit Manager, will present the proposed Internal Audit Annual Plan for 2026/27. This risk-based plan has been developed in accordance with GIAS and the CIPFA Code of Practice for the Governance of Internal Audit in UK Local Government. It outlines the audit approach for the year, incorporating a risk-based assessment of the Council's activities and consultation with senior management. The plan details the planned audit assignments, including those related to housing, community services, finance, legal and support services, planning, economic regeneration, HR, ICT, and cross-cutting themes such as LGR and fraud. The committee is asked to review and approve the plan.

Internal Audit Charter and Mandate

Kerry Beavis, Audit Manager, will present the Internal Audit Charter and Mandate for approval. This document formally defines the purpose, authority, and responsibilities of the internal audit activity, in line with GIAS and the CIPFA Code. It outlines the commitment to adhering to professional standards, the mandate including scope and types of services, and the organisational position and reporting relationships of the Chief Audit Executive. The charter also details the roles and responsibilities of the Chief Audit Executive and the board's oversight.

Corporate Risk Update

Kerry Beavis, Audit Manager, will provide an update on the Corporate Risk Register. This report presents the latest version of the register, reviewed by the Corporate Risk Group in March 2026. It highlights updates to specific risks, including a full review of CR3, the inclusion of Local Government Reorganisation (LGR) considerations within relevant risk controls, and an update on mitigation actions for the Local Plan risk (CR20). The report indicates that out of 17 active risks, one is rated as 'red', seven as 'amber', and nine as 'green'. The Audit Manager, acting as lead for corporate risk in the interim, is satisfied that the main risks and appropriate control measures are captured. The committee is asked to review and note the update, providing any feedback for the Corporate Risk Group.