The Audit Committee of Derbyshire County Council was scheduled to convene on Tuesday, 17 March 2026, with a packed agenda focusing on financial oversight, risk management, and audit progress. Key discussions were expected to cover the risk management frameworks within the Adult Social Care & Health department and the Council's strategic risk register, alongside performance and budget monitoring for the 2025-26 financial year. The committee was also set to review updated Financial Regulations, Accounting Policies, and the Council's Tax Strategy, as well as receive progress reports from both internal and external auditors.

Adult Social Care & Health Department Risk Management

The committee was scheduled to receive an overview of the risk management arrangements within the Adult Social Care & Health (ASCH) department. This discussion was intended to provide assurance that the principal risks within the department are being managed satisfactorily. The report highlighted that ASCH holds one risk on the strategic risk register: Safeguarding of Adults at Risk. The report detailed the assessment history of this risk, noting its current severity rating and the financial and reputational impact assessments. Mitigation strategies and progress commentary from the risk owner, Simon Stevens, Executive Director of Adult Social Care & Health, were also included. The committee was expected to obtain assurance from Mr. Stevens and Ellie Houlston, Director of Public Health, regarding the management of these risks and identify any specific areas for deeper exploration in future meetings.

Strategic Risk Register (2025-26 Quarter 3)

A significant portion of the meeting was dedicated to reviewing the Council's Strategic Risk Register, updated to the end of Quarter 3 (31 December 2025). This report aimed to provide reassurance that the most significant risks facing the Council have been identified and are being actively managed. The register details risks such as the Council not operating within its funding, failure to manage contracts, potential unlawful actions by the Council, and disruptions from Local Government Reorganisation (LGR). The report highlighted that 14 risks were currently over target, indicating that risk management controls were not fully in place or sufficient. Changes to risk titles and the addition of new risks, such as Council acts unlawfully, were also noted. The committee was expected to consider the register, identify any risks requiring further assurance, and note the proposed programme for reviewing risk management effectiveness in 2026-27.

Performance Monitoring and Budget Monitoring/Forecast Outturn (2025-26 Quarter 3)

The committee was scheduled to receive an update on the Council Plan performance and the Revenue Budget/Forecast Outturn for 2025-26 as at 31 December 2025 (Quarter 3). The report indicated a forecast net overspend of £0.505m against the approved Revenue Budget, primarily due to demand and cost pressures in Children's and Adults Social Care services. Savings delivery was reported as being on track. The report detailed key achievements across various outcomes, including progress in foster carer recruitment, reduction in social worker caseloads, improvements in Special Educational Needs and Disabilities (SEND) provision, and efforts to enhance road maintenance performance. Key challenges were also highlighted, particularly concerning the SEND assessment team's backlog and the sufficiency of accommodation for children in care. The committee was expected to note the performance update, savings delivery, the revenue budget position, and the significant actions required to address the revenue overspend.

Updated Financial Regulations

The committee was asked to approve proposed amendments to the Council's Financial Regulations. These regulations, last revised in 2024, are reviewed regularly to ensure they remain fit for purpose and comply with the Council's Constitution and relevant legislation. Key changes included provisions for the Chief Executive to authorise exceptions for interim executive directors controlling revenue budgets, clarifications on third-party arrangements, updated guidance on severance payments, and authority for Cabinet members to accept external funding offers. The committee was also expected to review changes in delegations for risk and insurance, and the removal of the Monitoring Officer's report as a standing item, with their input now integrated into the Annual Governance Statement.

Accounting Policies

The committee was scheduled to approve amendments to the Council's Accounting Policies for 2025-26 and proposed policies for 2026-27. These changes reflect updates to International Financial Reporting Standards (IFRS), particularly concerning the adoption of IFRS 16 Leases and its implications for holding over arrangements where the Council continues to use an asset after a contract has expired. The report detailed the work required to account for these leases, including reviewing arrangements, assessing asset usage, and making necessary accounting adjustments. Changes related to the revaluation of property, plant, and equipment, right-of-use assets, and intangible assets were also to be discussed.

Tax Strategy

The committee was to be advised of the latest review and update of the Council's Tax Strategy. This strategy outlines the Council's approach to tax risk management, governance, tax planning, and its relationship with His Majesty's Revenue and Customs (HMRC). The report noted that the Council maintains a low risk appetite regarding taxation and is committed to full compliance with tax laws. It also highlighted recent updates to the strategy, including changes related to the East Midlands Combined County Authority (EMCCA) and HMRC's assessment of the Council's tax compliance as Low Risk.

Meeting Dates and Agenda Items for 2026-27

Finally, the committee was asked to consider and agree the proposed meeting dates and likely agenda items for the Audit Committee's meetings during the 2026-27 municipal year. These proposals were based on the committee's existing business, with some changes including the addition of a review of the Annual Governance Statement recommendation progress and action tracker, and the review of national fraud initiatives. The report of the Monitoring Officer was noted as being removed as a standing item, with their input now incorporated into the Annual Governance Statement.

The meeting also included several exempt items, including an Annual Data Protection Report, which were not to be discussed in public.