The Governance, Audit, Risk Management and Standards Committee met to discuss the status of the 2025/26 audit, approve the internal audit and corporate anti-fraud plans for 2026/27, and review the committee's annual report. Key discussions included the timeline for regaining an unmodified audit opinion, the use of data analytics in internal audits, and strategies for combating fraud.

Audit Status 2025/26

The committee received an update on the 2025/26 audit status, with auditors from Forvis Mazars outlining their strategy for rebuilding assurance following previous disclaimed opinions. It was explained that the council is expected to receive a qualified opinion for the 2025/26 accounts, with a full unmodified opinion anticipated by the 2027/28 financial year. This phased approach is in line with guidance from the National Audit Office and is intended to address the backlog of audits. The auditors clarified that the disclaimed opinions were not a reflection of wrongdoing by the council but were due to a backlog and resource issues on the auditors' side, specifically a lack of finalised guidance for rebuilding assurance work in previous years. The audit plan for 2025/26 includes a focus on management override of controls, valuation of pension liabilities and property, and the implementation of IFRS 16. The audit fees for 2025/26 were noted as £433,000 for the main audit and £88,000 for the pension fund audit, a 2.8% increase on the previous year.

Internal Audit Annual Plan 2026/27

The committee reviewed and approved the Internal Audit Annual Plan for 2026/27. The plan outlines 64 project reviews, utilising 855 operational audit days. A significant aspect of the plan is the pilot use of data analytics, including artificial intelligence, to test larger datasets and identify trends and emerging risks across various services such as adult services caseload management, customer contact, and homelessness. The plan also includes reviews of core financial systems, corporate compliance, and risk-based audits across directorates. The updated Internal Audit Charter and Mandate, which aligns with the Global Internal Audit Standards (GIAS), was also approved. The report highlighted that while the Assistant Director, Audit & Anti-Fraud, has organisational independence, their objectivity is impaired due to additional responsibilities for the Corporate Anti-Fraud Team, Corporate Risk Management, and the preparation of the Annual Governance Statement. This is a common practice in local authorities and is mitigated by management assurance, oversight from the committee and Corporate Leadership Team, and external auditor reviews.

Corporate Anti-Fraud Annual Plan 2026/27

The Corporate Anti-Fraud Annual Plan for 2026/27 was reviewed and approved. The plan emphasizes a proactive approach to fraud detection and prevention, supplementing reactive referrals. It includes a focus on high-risk fraud areas, with single points of contact established to foster collaboration. A new key performance indicator has been introduced, requiring fraud reports to be issued within 10 working days of investigation completion. The plan draws on various data sources, including national fraud trends, the Local Government Fraud Strategy, and specific reports on tenancy fraud and credit industry fraud. The Corporate Anti-Fraud Team, comprising six full-time equivalents, will focus on areas such as corporate fraud risk assessment, reviewing the anti-fraud strategy, coordinating the National Fraud Initiative data match, and raising awareness of the Failure to Prevent Fraud legislation. Specific workstreams include employee screening, housing tenancy fraud, housing needs fraud, and fraud within adult social care.

GARMS Annual Report 2025/26

The committee reviewed and approved the draft GARMS Committee Annual Report for 2025/26. The report summarises the committee's work throughout the year, including its oversight of governance, internal and external audit, risk management, and counter-fraud activities. The report noted that the committee had met four times during the fiscal year and had reviewed various policy areas, ensuring appropriate governance and control arrangements were in place. The report also highlighted the ongoing process of rebuilding assurance following previous disclaimed audit opinions, with a projected timeline for achieving an unmodified opinion. The committee's terms of reference were also reviewed and updated. The report will be presented to the full council on 20 May 2026.