The Audit and Governance Committee of Rushmoor Borough Council met on Wednesday, 25 March 2026, to review the internal audit charter and plan for the upcoming year, as well as the progress of internal audit work and proposed accounting policies for the 2025/26 financial year. The committee approved the Internal Audit Charter and Plan for 2026/27, noted the progress report on internal audit activities, and adopted the accounting policies for the closure of the 2025/26 accounts.

Internal Audit Charter and Audit Plan 2026/27

The committee received and approved the Internal Audit Charter and the Internal Audit Plan for 2026/27, presented by Neil Pitman from the Southern Internal Audit Partnership (SIAP). The Internal Audit Charter outlines the mandate, organisational position, reporting relationships, and scope of work for the internal audit function, adhering to the Global Internal Audit Standards in the UK Public Sector. The risk-based Internal Audit Plan for 2026/27 was developed to provide proportionate assurance aligned with the Council's strategic outcomes, drawing on the Council's strategic risk register and sector knowledge.

During the discussion, members raised questions regarding property management, the Aldershot Crematorium refurbishment, and tree maintenance. In response, SIAP agreed to review the reprioritisation of the property management internal audit, complete a re-analysis of the risk assessment for the Crematorium refurbishment, and review the risk assessment levels for tree maintenance before the June 2026 committee meeting.

Internal Audit Progress Report

SIAP's Report No. SIAP26/05 was presented, providing an overview of internal audit activity against the approved audit plan and key updates relevant to the committee's role. The report noted that the Business Continuity Plan for the Crematorium Audit had not been finalised due to the lack of formal arrangements for potential cremator loss. However, an informal arrangement with nearby crematoria was considered to mitigate the risk, especially following the installation of two new cremators at Aldershot Crematorium. Members also inquired about the agency staff audit review, and it was confirmed that the Senior Leadership Team had an action plan in place and was addressing the matter urgently.

The committee resolved to update the Crematorium Audit management action to reflect the reduced risk following the refurbishment of Aldershot Crematorium, including the installation of two new cremators, and to note the progress report.

Accounting Policies for the Year

The committee considered Report No. FIN2610 from the Executive Head of Finance, which reviewed the proposed accounting policies for the closure of the 2025/26 accounts, prepared in line with the Chartered Institute of Public Finance Accountants (CIPFA) Code of Practice on Local Authority Accounting in the UK. The report highlighted that the adoption of these policies supports the timely and robust production of high-quality annual accounts and notified members of updated disclosures and the internal level of materiality.

Members noted that an approved set of accounting policies provides clarity to readers of the accounts. The 2025/26 materiality figure was still being finalised, with officers not expecting a significant change from the previous year's figure of just over £2 million. The updated figure would be circulated once confirmed. Members raised questions regarding property valuations and the potential for an independent expert to advise on these in the future.

The committee resolved to adopt the accounting policies, including the amendment disclosed at Appendix 1 for the closure of the 2025/26 account, and to note the updated disclosures and internal level of materiality once confirmed.