The Audit & Governance Committee of Oxfordshire Council met on Wednesday 20 May 2026, approving the Internal Audit Charter for 2026/27 and noting the Quality Assurance and Improvement Programme. The committee also approved the Annual Governance Statement for 2025/26, subject to minor amendments, and recommended proposed changes to the Council's Constitution to the full Council.

Chief Internal Auditor's Annual Report

The committee received the Chief Internal Auditor's Annual Report for 2025/26, which provided an opinion of satisfactory assurance regarding Oxfordshire County Council's overall control environment and its arrangements for governance, risk management, and control. The report detailed that 28 audits were undertaken during the year, with four receiving an overall conclusion of Red (indicating a weak system of internal control). The committee noted that where weaknesses were identified, corrective actions and timescales for improvement had been agreed with management. A specific point of discussion arose regarding the Bridge Management 2025/26 audit, which had received a Red conclusion. The Head of Internal Audit and Counter Fraud assured the committee that she had confidence in the agreed action plan for this area and that the audit of Highways Contract Management would be reviewed by the Audit Working Group. The committee resolved to endorse the annual report and requested that future reports include an additional column in Appendix One detailing the total number of overdue management actions.

Internal Audit Strategy and Plan 2026/27

The committee reviewed the Internal Audit Strategy and Plan for 2026/27. A significant focus of the plan is to support the upcoming Local Government Reorganisation (LGR), with dedicated audit days reserved for this purpose. The strategy aims to provide continued assurance during the transition, support transformation, and ensure the alignment of governance, risk management, and control frameworks for any new unitary authorities. The plan will remain agile and responsive to emerging risks and changing priorities, subject to regular review and adjustment leading up to vesting day in April 2028. The committee was also informed that a separate plan for Counter-Fraud activity would be presented in July 2026. The committee resolved to note the Internal Audit Strategy and Plan for 2026/27.

Internal Audit Charter 2026/27

The committee reviewed the Internal Audit Charter for 2026/27, which sets out the purpose and mandate of the internal audit function in accordance with the Global Internal Audit Standards in the UK Public Sector (GIAS). The Charter had been reviewed in April 2026 with only minor updates to job titles since its last approval in June 2025. The committee also noted the Quality Assurance and Improvement Programme (QAIP) for 2026/27, which details how the internal audit activity's quality will be monitored and improved. The committee resolved to approve the Internal Audit Charter for 2026/27 and note the Quality Assurance and Improvement Programme.

Statement of Accounts 2025/26

The Chief Accountant provided a verbal update, confirming that the Statement of Accounts for 2025/26 would be published on 30 June.

External Auditor's Audit Planning Report 2025/26 and Pension Fund Audit Planning Report 2025/26

Ernst & Young LLP presented their audit planning reports for both the Council's financial statements and the Pension Fund for 2025/26. They highlighted that the implementation of International Financial Reporting Standard (IFRS) 16 had presented challenges nationwide, but that issues identified in Oxfordshire had been resolved. Ernst & Young expressed confidence that the Council was in a good position to further rebuild assurance over the accounts and intended to complete the audit by the end of November 2026. Members noted that while timeliness and quality of evidence had required improvement in the 2024/25 audit, resourcing constraints had been addressed. The committee resolved to note both the Audit Planning Report and the Pension Fund Audit Planning Report for 2025/26.

Annual Governance Statement 2025/26

The Director of Law and Governance and Monitoring Officer presented the Annual Governance Statement (AGS) for 2025/26. The statement provides an overview of the council's governance frameworks and practices, confirming compliance with good governance principles. The AGS included an opinion from the Chief Executive and Leader of the Council stating that the council's governance arrangements were adequate and provided a platform for achieving its priorities. The committee noted that seven out of eight action points from the previous year's statement had been completed, with one requiring further work in 2026/27. Two changes were highlighted: the inclusion of Councillor Tim Bearder's name as Leader of the Council, and an amendment to paragraph 63 regarding the IBC report. Members raised questions about the inclusion of tackling discrimination in the Strategic Plan and the review of the People and Culture Strategy. The committee resolved to approve the Annual Governance Statement 2025/26 with one amendment, subject to consultation with the Leader, Chief Executive, and Section 151 Officer.

Constitution Working Group Report

The Director of Law and Governance and Monitoring Officer presented the report on proposed changes to the Council's Constitution, developed by the Constitution Working Group. Members discussed several proposed changes, including those related to questions on notice at Full Council, the Oxfordshire Joint Health Overview and Scrutiny Committee, and the Contract Procedure Rules. Specific points of discussion included the involvement of Cabinet Members in contracts valued between £25,000 and the Procurement Act Threshold, and the rationale for extending the application of terms and conditions to contracts valued at £50,000 rather than £25,000. The committee resolved to endorse the proposed amendments to the Council's Constitution, recommend their formal approval by the Council, and note that further amendments to the Officer Scheme of Delegation would be made to reflect the new management structure. The Council will be requested to formally adopt these amendments on 30 June 2026.

Audit Working Group Update

The Head of Internal Audit and Counter Fraud provided an update on the Audit Working Group (AWG). Members noted that the Audit and Governance Self-Assessment would take place in the AWG on 17 June, and that the AWG would meet again on 2 September. The proposal for audits concerning Safeguarding Transport and School Attendance to be reconsidered by the AWG on 7 October was approved. The committee noted the update.

Audit & Governance Work Programme 2026/27

The committee reviewed the Audit & Governance Work Programme for 2026/27. Members noted that the Fire and Community Safety Annual Report would also be tabled on 15 July. Discussions also covered Local Government Reorganisation (LGR), with a commitment to table further information on this topic for the committee on 16 September. The committee resolved to meet in private with internal and external auditors before the meeting on 18 November and to receive training on Treasury Management before the meeting on 13 January 2027. The committee resolved to note the Audit and Governance Work Programme for 2026/27.