The Audit Committee of Scottish Borders Council met on Monday, 23 March 2026, to review the external audit plan for 2025-26 and receive updates on internal audit work. Key decisions included the acceptance of the external audit plan and the approval of the internal audit charter and the internal audit strategy and annual plan for 2026-27.

External Audit Plan 2025-26

John Boyd from Audit Scotland presented the external audit plan for the year ending 31 March 2026. The plan outlines the scope and timing of the audit work, which includes the audit of the annual accounts and responsibilities related to the council's wider scope and best value arrangements. Significant audit risks identified include fraud by management override of controls, and the valuation of property, plant, and equipment, and pension assets. The audit fee for 2025-26 was set at £364,430. The committee accepted the external audit plan, noting that the wording regarding reliance on internal audit work would be reviewed for clarity in future.

Internal Audit Work to February 2026

Jill Stacey, Chief Officer Audit and Risk, provided an update on internal audit activities completed up to the end of February 2026. Six assurance reports were issued covering areas such as the management of the capital programme and projects, IT asset management, corporate transformation and change, payroll key controls, waste and recycling services, and information governance. A total of 17 recommendations were made, with one rated as high. The committee noted the report and acknowledged the assurance provided on internal controls and governance arrangements.

Internal Audit Charter

Jill Stacey presented the updated Internal Audit Charter for approval. The charter defines the mandate for the internal audit function, ensuring its independence and objectivity in line with the Global Internal Audit Standards (GIAS) in the UK Public Sector. The charter applies to Scottish Borders Council, the SBC Pension Fund, and the Scottish Borders Health and Social Care Integration Joint Board. The committee approved the updated charter, noting that it would be reviewed annually.

Internal Audit Strategy and Annual Plan 2026-27

Jill Stacey also presented the Internal Audit Strategy and the Annual Plan for 2026-27. The strategy outlines the approach for delivering internal audit assurance and advisory services, while the annual plan details the specific audit activities planned for the year. The plan is risk-based and covers key themes such as corporate governance, financial governance, ICT governance, internal controls, and asset management. The committee endorsed the proposed staff resources and approved the strategy and annual plan, noting that any significant changes would be brought back for approval. Concerns were raised regarding the reduction in available audit days compared to previous years, which was attributed to budgeted staff turnover adjustments.